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UNITED STATES PATENT AND TRADEMARK OFFICE
`_______________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_______________
`
`LOWE’S COMPANIES, INC.,
`LOWE’S HOME CENTERS, LLC, and L G SOURCING, INC.,
`Petitioners,
`
`v.
`
`NICHIA CORPORATION,
`Patent Owner.
`_______________
`
`Case IPR2018-00066
`Patent No. 7,915,631
`_______________
`
`JOINT MOTION TO TERMINATE PROCEEDING
`PURSUANT TO 35 U.S.C. § 317
`
`
`
`
`
`
`

`

`Case IPR2018-00066
`Patent No. 7,915,631 B2
`
`
`
`Pursuant to 35 U.S.C. § 317(b) and 37 C.F.R. § 42.74(c), Patent Owner
`
`Nichia Corporation (“Patent Owner”) and Petitioners Lowe’s Companies, Inc.,
`
`Lowe’s Home Centers, LLC, and L G Sourcing, Inc. (“Petitioners”) jointly move
`
`the Patent Trial and Appeal Board (“Board”) to terminate the following inter
`
`partes review proceeding in its entirety:
`
`IPR Case No.
`IPR2018-00066
`
`Patent No.
`7,915,631
`
`On May 15, 2018, the parties notified the Board by email that they had
`
`agreed in principle to a settlement that would affect this IPR proceeding and were
`
`negotiating a definitive settlement agreement.
`
`On June 13, 2018, the parties notified the Board by email that the parties had
`
`reached a final settlement and requested authorization to file the present motion.
`
`On June 15, 2018, the Board authorized the parties to do so. Pap.9. In support of
`
`the Motion to Terminate Proceeding, the parties state as follows:
`
`Pursuant to 35 U.S.C. § 317(b) and 37 C.F.R. § 42.74(b), Petitioners and
`
`Patent Owner jointly file herewith a true copy of their confidential settlement
`
`agreement. Because the settlement agreement is confidential, the parties
`
`respectfully request that it be treated as business confidential information, kept
`
`separate from the underlying patent file, and made available only as provided in 35
`
`
`
`
`

`

`Case IPR2018-00066
`Patent No. 7,915,631
`
`U.S.C. § 317(b) and 37 C.F.R. § 42.74(c). The parties have filed herewith a
`
`separate paper setting forth this request.
`
`
`
`The statutory provision on a settlement relating to inter partes reviews
`
`provides that an inter partes review “shall be terminated with respect to any
`
`petitioner upon the joint request of the petitioner and the patent owner, unless the
`
`Office has decided the merits of the proceeding before the request for termination
`
`is filed.” 35 U.S.C. § 317.
`
`
`
`This proceeding is in its early stages. This inter partes review was recently
`
`instituted on April 25, 2018. Pap. 7. No discovery has yet been requested or
`
`scheduled. The parties have settled their dispute and have agreed to file a
`
`stipulated dismissal in the district court litigation in which U.S. Patent No.
`
`7,915,631 had been asserted (Case No. 5:16-cv-00142 (W.D.N.C.).1
`
`
`1 Patent Owner notes that an IPR petition filed by a different petitioner, VIZIO,
`
`Inc., challenging claims of the ’631 patent is still pending at this time. See VIZIO,
`
`Inc. v. Nichia Corporaion, IPR2018-01100. However, by email correspondence to
`
`the Board dated June 12, 2018, Patent Owner and VIZIO jointly requested
`
`authorization to file a joint motion to terminate IPR2018-01100 in its entirety.
`
`
`
`

`

`Case IPR2018-00066
`Patent No. 7,915,631
`
`
`As noted above, the parties’ settlement agreement has been made in writing,
`
`and a true and correct copy shall be filed with this Office as business confidential
`
`information pursuant to 35 U.S.C. § 317(b).
`
`
`
`Because the Board has not decided the merits of this inter partes review
`
`proceeding, Section 317 provides that the proceeding should be terminated with
`
`respect to Petitioners. Moreover, because Lowe’s Companies, Inc., Lowe’s Home
`
`Centers, LLC, and L G Sourcing, Inc. are the only petitioners in the proceeding,
`
`once the proceeding is terminated with respect to them, no petitioner will remain in
`
`the inter partes review, and the Office may terminate the review in its entirety
`
`under Section 317. Patent Owner and Petitioners jointly submit that the Board
`
`should do so.
`
`Because these proceedings were only recently instituted, termination would
`
`save significant expenditure of resources by the Board and would further the
`
`purpose of IPR proceedings to provide an efficient and less costly alternative
`
`forum for patent disputes (including by encouraging settlement). The Board has
`
`routinely terminated proceedings at the request of settling parties in cases that have
`
`progressed much further than the present proceeding, see, e.g., Apex Medical Corp.
`
`v. Resmed Ltd., IPR2013-00512, Pap. 39, at 24 (Sept. 12, 2014) (granting motion
`
`to terminate in its entirety notwithstanding that instituted proceeding was fully
`
`briefed); Volusion, Inc. v. Versata Software, Inc., CBM2013-00018, Pap. 52, at 2
`
`
`
`

`

`Case IPR2018-00066
`Patent No. 7,915,631
`
`(June 17, 2014) (granting motion to terminate instituted proceeding in its entirety
`
`after final oral hearing); see also ARM, Ltd. v. Godo Kaisha IP Bridge 1, IPR2017-
`
`00527, Pap. 10, at 2-3 (May 12, 2017) (granting motion to terminate in its entirety
`
`after preliminary response but prior to institution). The parties respectfully request
`
`that the Board terminate this inter partes review proceeding in its entirety. Indeed,
`
`the Board has stated an expectation that proceedings such as this one will be
`
`terminated after the filing of a settlement agreement: “[t]here are strong public
`
`policy reasons to favor settlement between the parties to a proceeding . . . . The
`
`Board expects that a proceeding will terminate after the filing of a settlement
`
`agreement, unless the Board has already decided the merits of the proceeding. 35
`
`U.S.C. § 317(a), as amended. . . .” Office Patent Trial Practice Guide, 77 Fed.
`
`Reg. 48756, 48768 (Aug. 14, 2012) (emphasis added). For at least the reasons
`
`noted above, the Board’s expectation that such proceedings should be terminated is
`
`proper and well justified here.
`
`III. CONCLUSION
`
`
`
`Wherefore, Patent Owner and Petitioners respectfully request that the Board
`
`grant the parties’ joint motion to terminate Case No. IPR2018-00066 in its entirety
`
`and grant the request to treat the settlement agreement between the parties as
`
`business confidential information.
`
`
`
`

`

`Case IPR2018-00066
`Patent No. 7,915,631
`
`
`Petitioners and Patent Owner are available at the Board’s convenience to
`
`discuss these related matters in more detail or answer any additional questions
`
`raised by this joint motion.
`
`
`
`Dated: June 16, 2018
`
`Respectfully submitted,
`
`
`
`
`
`/s/ Scott D. Stimpson
`Scott D. Stimpson (Reg. No. 33,607)
`SILLS CUMMIS & GROSS PC
`101 Park Avenue, 28th Floor
`New York, NY 10178
`(212) 500-1550
`sstimpson@sillscummis.com
`
`
`Counsel for Petitioners Lowe’s
`Companies, Inc., Lowe’s Home
`Centers, LLC, and L G Sourcing, Inc.
`
`/s/ David E. Cole
`David E. Cole (Reg. No. 73,084)
`PAUL, WEISS, RIFKIND, WHARTON
`& GARRISON LLP
`2001 K Street, NW
`Washington, DC 20006
`(202) 223-7300
`dcole@paulweiss.com
`
`Counsel for Patent Owner
`Nichia Corporation
`
`
`
`
`
`
`
`
`
`
`

`

`Case IPR2018-00066
`Patent No. 7,915,631
`
`
`CERTIFICATE OF SERVICE
`Pursuant to 37 C.F.R. §42.6(e), I certify that, on June 16, 2018, I caused true
`
`and correct copies of the foregoing JOINT MOTION TO TERMINATE
`
`PROCEEDINGS PURSUANT TO 35 U.S.C. § 317 to be served by email on
`
`the following counsel of record for Petitioners Lowe’s Companies, Inc., Lowe’s
`
`Home Centers, LLC, and L G Sourcing, Inc.:
`
`Scott D. Stimpson, Esq.
`SILLS CUMMIS & GROSS PC
`101 Park Avenue, 28th Floor
`New York, NY 10178
` sstimpson@sillscummis.com
`
`B. Todd Patterson, Esq.
`PATTERSON + SHERIDAN, LLP
`24 Greenway Plaza, Suite 1600
`Houston, TX 77046
`tpatterson@pattersonsheridan.com
`
`
`
`
`
`
`
`
`/s/ David E. Cole
`David E. Cole (Reg. No. 73,084)
`PAUL, WEISS, RIFKIND,
`WHARTON & GARRISON LLP
`2001 K Street, NW
`Washington, DC 20006-1047
`(202) 223-7300
`dcole@paulweiss.com
`
`Counsel for Patent Owner
`Nichia Corporation
`
`
`
`
`
`
`
`
`
`

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