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`UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`__________________
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`UNIFIED PATENTS INC.
`Petitioner
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`v.
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`FALL LINE PATENTS, LLC
`Patent Owner
`__________________
`
`Case IPR2018-00043
`Patent 9,454,748
`__________________
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`PATENT OWNER’S OBSERVATIONS REGARDING
`RPI CROSS-EXAMINATION
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`1
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`Unified Patents v. Fall Line
`IPR2018-00043
`Unified Exhibit 1031
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`FILED UNDER SEAL – PROTECTIVE ORDER MATERIAL
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`Pursuant to the Board’s Order Regarding the Conduct of the Proceeding
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`(Paper 19), Patent Owner Fall Line Patents, LLC provides the following
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`Observations on Cross-Examination of Petitioner’s RPI witness, Kevin Jakel. Mr.
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`Jakel’s original declaration (Exhibit 1026) and Petitioner’s Voluntary Interrogatory
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`Responses (Exhibit 1027) were attached as exhibits to Petitioner’s RPI Response
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`(Paper). The transcript of the cross-examination deposition of Mr. Jakel is attached
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`to this paper as Exhibit 2009. Patent Owner’s observations are set forth below.
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`Observation #1: In exhibit 2009, beginning on page 26, line 21 through page 27,
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`line 22, the witness testified that IPRs are Petitioner’s biggest expense. This
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`testimony is relevant to Patent Owner’s argument that Petitioner’s members are the
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`real parties in interest, which is found in Paper 5, pages 28-32. The testimony is
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`relevant because it shows that a majority of Petitioner’s revenue, which is almost
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`entirely derived from membership fees, is spent on IPRs.
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`Observation #2: In exhibit 2009, beginning on page 31, line 16 through page 33,
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`line 5, the witness testified that membership fees account for about
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` of
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`Petitioner’s annual revenue. This testimony is relevant to Patent Owner’s argument
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`that Petitioner’s members are the real parties in interest, which is found in Paper 5,
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`pages 28-32. The testimony is relevant because Petitioner’s members must renew
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`2
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`CONFIDENTIAL MATERIAL REDACTED
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`FILED UNDER SEAL – PROTECTIVE ORDER MATERIAL
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`their subscription for Petitioner to continue to receive its primary source of
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`revenue.
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`Observation #3: In exhibit 2009, beginning on page 35, lines 4-16, the witness
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`testified that Petitioner has a contractual obligation to use the
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` to
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`generate a deterrence impact on behalf of a zone. This testimony is relevant to
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`Patent Owner’s argument that Petitioner’s members are the real parties in interest,
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`which is found in Paper 5, pages 28-32. The testimony is relevant because it shows
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`that Petitioner is obligated to act on behalf of its zone members’ interests.
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`Observation #4: In exhibit 2009, beginning on page 66, line 23 through page 67,
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`line 20, and page 90, lines 1-13, the witness testified that Petitioner is hired to do
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`deterrence work. This testimony is relevant to Patent Owner’s argument that
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`Petitioner’s members are the real parties in interest, which is found in Paper 5,
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`pages 28-32. The testimony is relevant because it shows that the members hire
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`Petitioner to perform deterrence services, including filing IPRs.
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`Observation #5: In exhibit 2009, beginning on page 64, line 14 through page 65,
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`line 7, the witness testified that Petitioner has a contractual obligation to use “
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`” to reduce NPE activity in a zone. This testimony is relevant to
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`3
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`CONFIDENTIAL MATERIAL REDACTED
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`FILED UNDER SEAL – PROTECTIVE ORDER MATERIAL
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`Patent Owner’s argument that Petitioner’s members are the real parties in interest,
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`which is found in Paper 5, pages 28-32. The testimony is relevant because it shows
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`that Petitioner has a legal obligation to perform deterrence efforts on behalf of its
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`zone members.
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`Observation #6: In exhibit 2009, beginning on page 109, line 24 through page
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`111, line 2, the witness testified that Petitioner meets with every member, during
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`which Petitioner describes the work done on behalf of the zone and tries to
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`convince the member to renew. This testimony is relevant to Patent Owner’s
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`argument that Petitioner’s members are the real parties in interest, which is found
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`in Paper 5, pages 28-32. The testimony is relevant because it shows that Petitioner
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`tells its members what work was done on their behalf, including filing IPRs.
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`Observation #7: In exhibit 2009, beginning on page 35, line 17 through page 36,
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`line 24, the witness testified that IPRs are Petitioner’s most cost-effective way to
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`achieve its business goals. This testimony is relevant to Patent Owner’s argument
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`that Petitioner’s members are the real parties in interest, which is found in Paper 5,
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`pages 28-32. The testimony is relevant because it shows that Petitioner maintains
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`memberships by filing IPRs.
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`4
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`FILED UNDER SEAL – PROTECTIVE ORDER MATERIAL
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`Observation #8: In exhibit 2009, beginning on page 38, line 24 through page 39,
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`line 4, the witness testified that IPRs are Petitioner’s best way to achieve its
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`business goals. This testimony is relevant to Patent Owner’s argument that
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`Petitioner’s members are the real parties in interest, which is found in Paper 5,
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`pages 28-32. The testimony is relevant because it shows that Petitioner believes its
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`best way to generate deterrence—which is Petitioner’s stated purpose and the basis
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`on which it convinces members to join or review—is by filing IPRs.
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`Observation #9: In exhibit 2009, beginning on page 45, line 14 through page 47,
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`line 7 the witness testified that Petitioner provides regular reports to its members,
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`which include which IPRs were filed, the results of those IPRs, and the money
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`spent on each individual IPR. This testimony is relevant to Patent Owner’s
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`argument that Petitioner’s members are the real parties in interest, which is found
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`in Paper 5, pages 28-32. The testimony is relevant because it shows that
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`Petitioner’s members are regularly provided with exact, detailed breakdowns of
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`how their subscription fees are being spent on their behalf.
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`Observation #10: In exhibit 2009, beginning on page 100, line 12 through page
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`101, line 13, the witness testified that when Petitioner obtains a license, such as
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`part of settling an IPR, Petitioner also obtains a right to sublicense the patent to its
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`5
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`FILED UNDER SEAL – PROTECTIVE ORDER MATERIAL
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`members. This testimony is relevant to Patent Owner’s argument that Petitioner’s
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`members are the real parties in interest, which is found in Paper 5, pages 28-32.
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`The testimony is relevant because it shows that Petitioner obtains licenses in order
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`to provide a sublicense to its members.
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`Observation #11: In exhibit 2009, beginning on page 102, lines 1-5, the witness
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`testified that any
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` by Petitioner
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`. This testimony is relevant to Patent Owner’s argument that Petitioner’s
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`members are the real parties in interest, which is found in Paper 5, pages 28-32.
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`The testimony is relevant because it shows that
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` by
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`Petitioner benefits its members.
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`Observation #12: In exhibit 2009, beginning on page 124, lines 13-23, the witness
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`testified that Petitioner works to obtain licenses on behalf of its zones. This
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`testimony is relevant to Patent Owner’s argument that Petitioner’s members are the
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`real parties in interest, which is found in Paper 5, pages 28-32. The testimony is
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`relevant because the zones are comprised on Petitioner’s members.
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`Observation #13: In exhibit 2009, beginning on page 105, line 24 through page
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`106, line 11 the witness testified that a majority of the licenses obtained by
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`6
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`CONFIDENTIAL MATERIAL REDACTED
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`FILED UNDER SEAL – PROTECTIVE ORDER MATERIAL
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`Petitioner were for patents on which Petitioner had filed an IPR. This testimony is
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`relevant to Patent Owner’s argument that Petitioner’s members are the real parties
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`in interest, which is found in Paper 5, pages 28-32. The testimony is relevant
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`because it shows that Petitioner’s most effective method for obtaining licenses is to
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`file IPRs.
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`Observation #14: In exhibit 2009, beginning on page 109, line 24 through page
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`110, line 21, and page 112, lines 1-11, the witness testified that Petitioner reports
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`its deterrence work to each member as part of the process to convince each
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`member to renew. This testimony is relevant to Patent Owner’s argument that
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`Petitioner’s members are the real parties in interest, which is found in Paper 5,
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`pages 28-32. The testimony is relevant because it shows that Petitioner uses the
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`success of its IPR filings and other deterrence work to convince members to renew
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`their membership.
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`Observation #15: In exhibit 2009, beginning on page 114, lines 16-25, the witness
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`testified that Petitioner emphasizes its work to each member in order to convince
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`them to renew. This testimony is relevant to Patent Owner’s argument that
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`Petitioner’s members are the real parties in interest, which is found in Paper 5,
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`pages 28-32. The testimony is relevant because it shows that Petitioner uses the
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`7
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`FILED UNDER SEAL – PROTECTIVE ORDER MATERIAL
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`success of its deterrence work, which includes filing IPRs, to convince members to
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`renew their membership.
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`Observation #16: In exhibit 2009, beginning on page 188, line 21 through page
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`189, line 5 the witness testified that money obtained by membership fees is used to
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`fund IPRs. This testimony is relevant to the witness’s other testimony that the IPRs
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`are not funded by the members, which is found at page 160, line 3 through page
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`167, line 23, and more specifically at page 164, lines 5-23. The testimony is
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`relevant because it shows that Petitioner actively seeks to deny that the
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`membership fees it collects are used to fund IPRs.
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`Dated: February 22, 2019
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`Respectfully submitted,
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`
`
`/Michael D. Ellis/
`Michael D. Ellis
`Reg. No. 72,628
`Counsel for Patent Owner
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`8
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`IPR2018-0043
`Patent 9,454,748
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`CERTIFICATE OF SERVICE
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`Pursuant to 37 C.F.R. § 42.6, the undersigned certifies that on February 22,
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`2019, the foregoing document was served via email on counsel for Petitioner:
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`HAYNES AND BOONE, LLP
`David O’Brien (David.obrien.ipr@haynesboone.com)
`Raghav Bajaj (Raghav.bajaj.ipr@haynesboone.com)
`David McCombs (David.mccombs.ipr@haynesboone.com)
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`UNIFIED PATENTS INC.
`Jonathan Stroud (jonathan@unifiedpatents.com)
`Roshan Mansinghani (roshan@unifiedpatents.com)
`Jonathan Bowser (jbowser@unifiedpatents.com)
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`_
`
`/Michael D. Ellis/
`Michael D. Ellis
`Counsel for Patent Owner
`Reg. No. 72,628
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`9
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