`
`
`
`IPR2018-00067
`U.S. Patent 8,577,813
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`____________
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
` ____________
`
`
`UNIFIED PATENTS INC.
`Petitioner
`
`v.
`
`UNIVERSAL SECURE REGISTRY LLC
`Patent Owner
`
`____________
`
`
`IPR2018-00067
`Patent 8,577,813
`
` ____________
`
`
`
`
`PETITIONER’S MOTION TO EXPUNGE CONFIDENTIAL
`INFORMATION
`
`
`
`
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`Pursuant to 37 C.F.R. § 42.56, Petitioner, Unified Patents Inc. (“Unified” or
`
`“Petitioner”), hereby requests that certain confidential information in the record be
`
`expunged. Specifically, Petitioner respectfully submits that: (i) Paper 28, Patent
`
`Owner’s Response Pursuant To 37 CFR § 42.120 (Confidential Version); (ii) Paper
`
`39, Petitioner’s Reply (Confidential Version); (iii) Paper 48, Confidential Corrected
`
`Patent Owner’s Response; (iv) Paper 49, Confidential Corrected Patent Owner’s
`
`Response (Redline); (v) Paper 54, Final Written Decision (Confidential Version);
`
`(vi) Exhibit 2011, Membership Agreement; (vii) Exhibit 2012, Subscription Fees;
`
`(viii) Exhibit 2017, Patent Owner’s Oral Hearing Demonstratives (Confidential
`
`Version); (ix) Exhibit 1036, Declaration of Kevin Jakel (Confidential Version); and
`
`(x) Exhibit 1037, Deposition Transcript of Kevin Jakel (Confidential Version)
`
`(collectively, the “Confidential Documents”) should be expunged from the record as
`
`these pleadings and exhibits contain Petitioner’s highly confidential business
`
`information.
`
`This motion is being timely filed within 45 days from the Final Written
`
`Decision. See Office Patent Trial Practice Guide (“Trial Practice Guide”), 77 Fed.
`
`Reg. 48756, 48761 (Aug. 14, 2012). For the reasons set forth below, Petitioner
`
`requests that the Confidential Documents be expunged. Patent Owner’s counsel
`
`indicated that while Patent Owner does not believe the information to be
`
`confidential, Patent Owner does not intend to file an opposition.
`
`
`
`1
`
`
`
`I.
`
`Applicable Legal Standards
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`
`37 C.F.R. § 42.56 provides that “after final judgment in a trial, a party may
`
`file a motion to expunge confidential information in the record.” Likewise, the Trial
`
`Practice Guide states:
`
`There is an expectation that information will be made public where the
`existence of the information is referred to . . . in a final written decision
`following a trial. A party seeking to maintain the confidentiality of
`information, however, may file a motion to expunge the information
`from the record prior to the information becoming public.
`
`Trial Practice Guide, 77 Fed. Reg. at 48761. A party seeking expungement from
`
`the record must show good cause by demonstrating “that any information sought
`
`to be expunged constitutes confidential information, and that Petitioner’s interest in
`
`expunging it outweighs the public’s interest in maintaining a complete and
`
`understandable history of this inter partes review.” Atlanta Gas Light Co. v. Bennett
`
`Regulator Guards, Inc., IPR2013-00453, Paper 97 at 2 (P.T.A.B. Apr. 15, 2015).
`
`II. Reasons for Relief Requested
`A.
`Procedural Background
`The Board granted the parties’ Joint Motion for Entry of a Protective Order.
`
`Paper 55 (Order granting Joint Motion); Paper 24 (Joint Motion); Ex. 2001
`
`(Protective Order). Two unopposed Motions to Seal have been filed in this
`
`proceeding (Paper 37 and Paper 55), collectively requesting that the Board maintain
`
`
`
`2
`
`
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`the Confidential Documents under seal. As indicated in the Motions to Seal, the
`
`Confidential Documents contain confidential, sensitive business information that
`
`has not been published or made public. See Paper 37 at 1; Paper 55 at 4-10. The
`
`Confidential Documents contain, inter alia, Petitioner’s highly confidential
`
`members’ identities, Petitioner’s highly confidential agreements, membership terms,
`
`and business strategy; and Petitioner’s highly confidential financial information. See
`
`id.
`
`The Board granted Petitioner’s Motion to Seal (Paper 55), ordering that the
`
`Confidential Documents that were filed by the parties remain under seal with
`
`restricted, non-public access. Paper 58. The Board also authorized the parties’
`
`filings of the following redacted, publicly-available versions of certain Confidential
`
`Documents: Paper 38 (Redacted Version of Reply, Paper 39); Paper 27 (Redacted
`
`Version of Patent Owner Response, Paper 28); Paper 50 (Redacted Version of
`
`Corrected Patent Owner Response, Papers 48 and 49); Exhibit 1043 (Redacted
`
`Version of Exhibit 1036); Exhibit 1044 (Redacted Version of Exhibit 1037).1 See
`
`
`1 The only Confidential Documents for which a corresponding public, redacted version
`
`was not filed were Exhibits 2011 and 2012, which contained highly confidential and
`
`sensitive information in their entirety and which Petitioner moved to seal in their entirety.
`
`
`
`3
`
`
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`Paper 58. The Board also filed a redacted, public version (Paper 59) of the
`
`confidential version (Paper 54) of the Final Written Decision, removing certain
`
`highly confidential information, including information regarding the highly
`
`confidential membership status of certain members. See Paper 59.
`
`B. Good Cause Exists for Expunging the Confidential Documents
`All of the Confidential Documents contain Petitioner’s highly confidential
`
`business information, which Petitioner guards in order to protect its own business as
`
`well as its members. Specifically, the Confidential Documents contain highly
`
`confidential and sensitive business information regarding the identity of certain of
`
`Petitioner’s members that is non-public and could cause competitive business injury
`
`to Petitioner and expose Petitioner to potential breach of contractual obligations by
`
`Petitioner if publicly disseminated. Paper 55 at 4-10. The Confidential Documents
`
`also contain highly confidential information regarding Petitioner’s internal business
`
`operations, business plans, business strategy, financial information, membership
`
`information, and other sensitive business information that is non-public and could
`
`cause competitive business injury to and potential breach of contractual obligations
`
`by Petitioner if publicly disseminated. Id. The Confidential Documents also include
`
`
`See Paper 55. The Board granted Petitioner’s request to seal these two exhibits in their
`
`entirety. See Paper 58.
`
`
`
`4
`
`
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`or contain discussion of certain highly confidential agreements that could similarly
`
`cause competitive business injury to and potential breach of contractual obligations
`
`by Petitioner if publicly disseminated. Id. As discussed, public, redacted versions
`
`of certain of the Confidential Documents have been filed that redact only the
`
`confidential and sensitive portions; and the Board found that the redactions were
`
`appropriately limited by granting Petitioner’s Motion to Seal. Paper 58. The Board
`
`also filed a redacted, public version of the Final Written Decision removing certain
`
`highly confidential information, including information regarding the highly
`
`confidential membership status of certain members. See Paper 59.
`
`For the reasons set forth in Petitioner’s Motion to Seal, which the Board
`
`granted, the portions of the Confidential Documents that have been redacted from
`
`the public record of this proceeding are not necessary to understanding the
`
`underlying arguments or the Board’s findings, analysis, or conclusions. See Paper
`
`55 at 6-10. And public, redacted versions of certain Confidential Documents have
`
`been filed.2 Further, the confidential information sought to be expunged address
`
`
`2 Exhibits 2011 and 2012 were only filed in confidential form, as discussed. But, as
`
`explained in Petitioner’s Motion to Seal (Paper 55, at 9), the Final Written Decision cites
`
`to these exhibits only for the purpose of summarizing Patent Owner’s argument, and the
`
`
`
`5
`
`
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`only real-party-in-interest issues and do not bear on the unpatentability of the claims.
`
`Thus, the public, redacted versions maintain the “essence” of the arguments and
`
`evidence in this proceeding and do not prevent the public from “maintaining a
`
`complete and understandable history” of this proceeding. Atlanta Gas Light, Paper
`
`97 at 2, 3. The public interest, therefore, is served in not now making the
`
`Confidential Documents publicly available.
`
`As to the Final Written Decision (Paper 54, redacted version Paper 59), the
`
`redactions of confidential information were minimal and do not inhibit the public’s
`
`ability to completely understand the file history of this proceeding. Thus, the
`
`redacted version of the Final Written Decision (Paper 59) “strik[es] an appropriate
`
`balance between the public policy for an open record and the legitimate need to
`
`protect confidential information from disclosure.” Atlanta Gas Light, Paper 97 at 4
`
`(citing RPX Corp. v. VirnetX Inc., IPR2014-00171, Paper 62 at 4–5) (P.T.A.B. Sept.
`
`9, 2014)). Like the redactions to the other Confidential Documents filed by the
`
`parties, the redactions in the Final Written Decision address real-party-in-interest
`
`issues and do not bear on the unpatentability of the claims. Finally, the Board has
`
`previously relied on sealed confidential information in a final written decision
`
`
`Final Written Decision does not otherwise cite to or rely on Exhibits 2011 and 2012 to
`
`support its findings, analysis, or conclusions.
`
`
`
`6
`
`
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`without publicly disclosing that confidential information. See, e.g., Petrol. Geo-
`
`Services Inc. v. WesternGeco LLC, IPR2014-01477, Paper 71 at 62-68 (P.T.A.B.
`
`Jul. 11, 2016) (final written decision redacting confidential information and finding
`
`no privity between Petitioner and third-party defendant in litigation).
`
`Good cause, therefore, exists to expunge the Confidential Documents,
`
`including the confidential version of the Final Written Decision (Paper 54).
`
`III. Conclusion
`For all of the foregoing reasons, Petitioner respectfully requests that the Board
`
`protect Petitioner’s highly confidential business information and expunge the
`
`Confidential Documents pursuant to 37 C.F.R. § 42.56.
`
`IV. Request for Conference Call with the Board
`Should the Board not be inclined to grant the present Motion to Expunge
`
`Confidential Information, Petitioner hereby respectfully requests a conference call
`
`with the Board to discuss any concerns prior to the Board issuing a decision on the
`
`Motion.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Respectfully submitted,
`
`
`
`
`BY: /s/ Jason R. Mudd
`Jason R. Mudd, Reg. No. 57,700
`Eric A. Buresh, Reg. No. 50,394
`Roshan Mansinghani, Reg. No. 62,429
`Jonathan Stroud, Reg. No. 72,518
`
`ATTORNEYS FOR PETITIONER
`
`7
`
`
`
`IPR2018-00067
`U.S. Patent No. 8,577,813
`
`
`CERTIFICATE OF SERVICE
`
`
`Pursuant to 37 C.F.R. § 42.6(e), the undersigned certifies that on June 17,
`
`2019, the foregoing Petitioner’s Motion to Expunge Confidential Information was
`
`served via electronic service on the following counsel of record for Patent Owner:
`
`
`
`• jimglass@quinnemanuel.com
`• nimahefazi@quinnemanuel.com
`• tigranguledjian@quinnemanuel.com
`• halbarza@quinnemanuel.com
`• jordankaericher@quinnemanuel.com
`• qe-usr-ipr@quinnemanuel.com
`
`
`
`Dated: June 17, 2019
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`BY: /s/ Jason R. Mudd
`
`Jason R. Mudd, Reg. No. 57,700
`
`ATTORNEY FOR PETITIONER
`
`
`
`
`
`
`
`
`
`8
`
`