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`·2· · · · · ·BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`·3
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`·4· · · ZTE (USA) Inc.,· · · · · · · )· Case Nos.
`· · · · Samsung Electronics Co.,· · ·)· IPR2018-00111
`·5· · · Ltd., and Samsung· · · · · · )· IPR2018-00214
`· · · · Electronics America, Inc.,· ·)· IPR2018-00215
`·6· · · · · · · · · · · · · · · · · ·)· IPR2018-00274
`· · · · · · · · ·Petitioner,· · · · ·)· IPR2018-00276
`·7· · · · · · · · · · · · · · · · · ·)· IPR2018-00425
`· · · · · · · · VS.· · · · · · · · · )
`·8· · · · · · · · · · · · · · · · · ·)
`· · · · Fundamental Innovation· · · ·)
`·9· · · Systems International LLC,· ·)
`· · · · · · · · · · · · · · · · · · ·)
`10· · · · · · · ·Patent Owner.· · · ·)
`· · · · _____________________________)
`11
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`12
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`13
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`14· · · · · · · · · · · TELEPHONIC HEARING
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`15· · · · · · · · · · · · · ·TAKEN ON
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`16· · · · · · · · · ·THURSDAY, JULY 12, 2018
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`17
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`18
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`19· ·Reported by:· DENISE A. ROSS
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`20· · · · · · · · ·CSR No. 10687
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`·1· · · · · · ·TELEPHONIC HEARING BEFORE THE PATENT TRIAL
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`·2· ·AND APPEAL BOARD, taken on THURSDAY, JULY 12, 2018, at
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`·3· ·10:02 a.m., before DENISE A. ROSS, CSR No. 10687.
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`·4
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`·5· ·APPEARANCES:
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`·6
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`·7· ·UNITED STATES PATENT AND TRADEMARK OFFICE PATENT TRIAL
`· · ·AND APPEAL BOARD:
`·8
`· · · · · · · ·JUDGE JON B. TORNQUIST
`·9
`· · · · · · · ·JUDGE BRYAN F. MOORE
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`· · · · · · · ·JUDGE LYNNE E. PETTIGREW
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`· · · · · · · ·JUDGE JO-ANNE M. KOKOSKI
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`· · · · · · · ·JUDGE PAUL J. KORNICZKY
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`· · · · · · · ·JUDGE ARTHUR M. PESLAK
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`·1· ·APPEARANCES (continued):
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`·2
`· · ·FOR THE PATENT OWNER FUNDAMENTAL INNOVATION SYSTEMS
`·3· ·INTERNATIONAL, LLC:
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`·4· · · · · · ·IRELL & MANELLA LLP
`· · · · · · · ·BY:· ANNITA H. ZHONG, ESQ.
`·5· · · · · · · · · MIKE FLEMMING, ESQ.
`· · · · · · · ·1800 Avenue of the Stars
`·6· · · · · · ·Suite 900
`· · · · · · · ·Los Angeles, California 90067
`·7
`· · ·FOR THE PETITIONER ZTE (USA) INC.:
`·8
`· · · · · · · ·McDERMOTT WILL & EMERY
`·9· · · · · · ·BY:· HERSH H. MEHTA, ESQ.
`· · · · · · · · · · CHARLES M. McMAHON, ESQ.
`10· · · · · · ·444 West Lake Street
`· · · · · · · ·Chicago, Illinois 60606-0029
`11
`· · ·FOR THE PETITIONER SAMSUNG ELECTRONICS CO., LTD., AND
`12· ·SAMSUNG ELECTRONICS AMERICA, INC.:
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`13· · · · · · ·KIRKLAND & ELLIS LLP
`· · · · · · · ·BY:· EUGENE GORYUNOV, ESQ.
`14· · · · · · ·300 North LaSalle Street
`· · · · · · · ·Chicago, Illinois 60654
`15
`· · ·FOR THE PETITIONER LG:
`16
`· · · · · · · ·HAYNES AND BOONE
`17· · · · · · ·BY:· DAVID McCOMBS, ESQ.
`· · · · · · · ·2323 Victory Avenue
`18· · · · · · ·Suite 700
`· · · · · · · ·Dallas, TX 75219
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`·1· · · ·LOS ANGELES, CALIFORNIA; THURSDAY, JULY 12, 2018
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`·2· · · · · · · · · · · · ·10:02 a.m.
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`·3
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`·4· · · · · · ·JUDGE TORNQUIST:· Good afternoon.· This is
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`·5· ·Judge Tornquist.· And with me are Judges Pettigrew,
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`·6· ·Moore, Peslak, Korniczky and Kokoski.
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`·7· · · · · · ·This is a call for IPR2018 '111, '214, '215,
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`·8· ·'274, '276 and '425.
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`·9· · · · · · ·Do we have Petitioner on the line?
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`10· · · · · · ·Let's start with Samsung Petitioner.
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`11· · · · · · ·MR. GORYUNOV:· Yes, your Honor,
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`12· ·Eugene Goryunov on behalf of Samsung Petitioner.
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`13· · · · · · ·JUDGE TORNQUIST:· ZTE Petitioner?
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`14· · · · · · ·MR. McMAHON:· Yes, your Honor.
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`15· ·Charles McMahon on behalf of ZTE; and with me is Hersh
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`16· ·Mehta, both from McDermott, Will & Emory.
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`17· · · · · · ·JUDGE TORNQUIST:· Okay.· Welcome.
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`18· · · · · · ·And did we get the LG Petitioners on this
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`19· ·call?
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`20· · · · · · ·MR. McCOMBS:· Yes, your Honor.· This is
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`21· ·David McCombs with Haynes and Boone, for the LG
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`22· ·Petitioner.
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`23· · · · · · ·JUDGE TORNQUIST:· Great.
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`24· · · · · · ·Patent Owner?
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`25· · · · · · ·MS. ZHONG:· Yes.· This is Annita Zhong with
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`·1· ·Irell & Manella, and together with me is Mr. Michael
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`·2· ·Flemming.
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`·3· · · · · · ·JUDGE TORNQUIST:· Okay.· Welcome.
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`·4· · · · · · ·And do we have a court reporter on the line?
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`·5· · · · · · ·THE REPORTER:· Yes, you do, your Honor.· This
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`·6· ·is Denise Ross.
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`·7· · · · · · ·JUDGE TORNQUIST:· Okay.· Welcome.
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`·8· · · · · · ·Who ordered the court reporter?
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`·9· · · · · · ·MS. ZHONG:· Patent Owner.
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`10· · · · · · ·JUDGE TORNQUIST:· Okay.· Great.
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`11· · · · · · ·So if you would, Patent Owner, please, after
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`12· ·the call is resolved and you have the transcript, can
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`13· ·you put that in the record as an exhibit.
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`14· · · · · · ·MS. ZHONG:· Definitely will.· Thank you.
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`15· · · · · · ·JUDGE TORNQUIST:· My understanding is that
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`16· ·Petitioner Samsung has reached a settlement with
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`17· ·Patent Owner.
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`18· · · · · · ·We received a conference call request to
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`19· ·discuss the mechanism for terminating Samsung with
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`20· ·respect to these proceedings, but continuing forward
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`21· ·with ZTE, and ZTE and LG in the '111 case.
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`22· · · · · · ·With that request, we also received a
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`23· ·proposed order from Patent Owner, which is a request
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`24· ·that we authorize termination with respect to Samsung.
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`25· · · · · · ·So, Patent Owner, let's start with you.
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`·1· · · · · · ·Could you please explain what questions you
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`·2· ·need resolved here by the different panels and then why
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`·3· ·you think the proposed order that you attached or put
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`·4· ·in your e-mail is appropriate in this case.
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`·5· · · · · · ·MS. ZHONG:· Okay.· So as your Honor has
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`·6· ·stated, Fundamental has entered into settlement
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`·7· ·agreement with Samsung Electronics Co., Ltd.· And by
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`·8· ·the terms of the agreement, Samsung is to withdraw from
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`·9· ·the IPR proceedings that it's filed against
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`10· ·Fundamental.
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`11· · · · · · ·And Samsung and ZTE, basically, jointly filed
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`12· ·six IPRs against Fundamental's patents.· And in each
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`13· ·one of them, they jointly represented they are real
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`14· ·parties in interest.
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`15· · · · · · ·Usually in IPR proceedings, if a Patent Owner
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`16· ·reaches a settlement agreement with one of the
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`17· ·Petitioners, the mechanism, I understand, for
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`18· ·withdrawal is -- a lot of times is under the 317(a)
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`19· ·termination provision.
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`20· · · · · · ·But 317(a) also provides that if the
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`21· ·inter partes review is terminated with respect to a
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`22· ·Petitioner under this section, non-estoppel under
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`23· ·Section 315(e) shall attach to the Petitioner or to the
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`24· ·real party interest or privy of the Petitioner on the
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`25· ·basis of that Petitioner's institution of that
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`·1· ·inter partes review.
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`·2· · · · · · ·So in the six IPR proceedings that are
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`·3· ·jointly filed by Samsung and ZTE, ZTE wants to remain
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`·4· ·in the proceeding; but it also will not stipulate that
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`·5· ·it is not a real party interest or privy of Samsung.
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`·6· · · · · · ·So what we got in is that it appears that ZTE
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`·7· ·is holding out for the potential to claim that it's
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`·8· ·Samsung's real party interest or privy and then be
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`·9· ·effectively shielded by 315(e) by operation of 317(a).
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`10· · · · · · ·And to us, that is contrary to AR's goal of
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`11· ·just, speedy and expedited resolution of the
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`12· ·patentability disputes between the parties, because ZTE
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`13· ·can effectively claim to be a real party interest of
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`14· ·Samsung, be shielded from 315(e) and can relitigate
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`15· ·everything that is before the Board in another forum.
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`16· · · · · · ·And we don't believe that that's what
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`17· ·Congress intended.· And that is not just to the Patent
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`18· ·Owner.
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`19· · · · · · ·So what we are seeking from the Board is
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`20· ·guidance on how Samsung can be dismissed from the
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`21· ·proceedings jointly filed with ZTE without ZTE also
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`22· ·preserving the argument that it can continue to
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`23· ·participate in the proceedings, but not be subject to
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`24· ·the estoppel provision or be bound by the Board's
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`25· ·determination.
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`·1· · · · · · ·So what we actually envision is that the
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`·2· ·Board rule as part of the termination of Samsung and
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`·3· ·its privy and real party interest that ZTE, basically,
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`·4· ·is not Samsung's real party interest; and, therefore,
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`·5· ·the estoppel provision applies to it.
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`·6· · · · · · ·Alternatively, if it's procedurally
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`·7· ·allowable, Patent Owner also has no objection for
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`·8· ·Samsung to file a motion to withdraw that does not
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`·9· ·invoke 317(a).· But we don't really know what the
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`10· ·procedural posture will be for such a withdrawal
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`11· ·motion, and we need the Board's guidance.
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`12· · · · · · ·JUDGE TORNQUIST:· Okay.· Let me ask you a
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`13· ·couple of questions.
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`14· · · · · · ·The issue of estoppel is not before the
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`15· ·current panel, is it?
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`16· · · · · · ·I guess my point is:· The question of
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`17· ·estoppel will be raised at some future time before
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`18· ·either a different panel of the Board or possibly the
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`19· ·district court.
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`20· · · · · · ·Is that correct?
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`21· · · · · · ·MS. ZHONG:· So the estoppel issue will be --
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`22· ·yes -- will be after the final written description --
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`23· ·written decisions have been reached.· And it will be
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`24· ·possibly before the district court or IPC panels.
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`25· · · · · · ·JUDGE TORNQUIST:· I guess the concern the
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`·1· ·panel may have is that anything that we do now, we
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`·2· ·wouldn't want to cut off the ability of those future
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`·3· ·tribunals to decide the issue.
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`·4· · · · · · ·So how do you propose that we would make a
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`·5· ·ruling here that would not bind or cut off a future
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`·6· ·tribunal?
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`·7· · · · · · ·MS. ZHONG:· I think one of the things is,
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`·8· ·first of all, we can ask ZTE whether it wants to
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`·9· ·stipulate or represent formally to the Board that it is
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`10· ·not a real party interest to Samsung.
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`11· · · · · · ·And if they can make that representation,
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`12· ·then I think the issue is pretty easy.· We will just
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`13· ·proceed under 317(a).
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`14· · · · · · ·But if they don't, then, I guess, the
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`15· ·alternative is if there's another way to terminate
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`16· ·Samsung without invoking 317(a), then that will be
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`17· ·another alternative.· But we don't know whether that's
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`18· ·possible.
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`19· · · · · · ·JUDGE TORNQUIST:· Okay.· So let me ask you
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`20· ·another question.
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`21· · · · · · ·You raised the idea or the request that we
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`22· ·identify ZTE as not being a real party interest.
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`23· · · · · · ·Are those facts before any of the panels at
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`24· ·this time, the facts to make a ruling about ZTE's
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`25· ·position that they or the IPR are privy to Samsung?
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`·1· · · · · · ·MS. ZHONG:· I think that if ZTE is a real
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`·2· ·party interest to Samsung, then they should be
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`·3· ·dismissed together with Samsung, because if they are
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`·4· ·real party interest, then they are one and the same as
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`·5· ·Samsung.
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`·6· · · · · · ·JUDGE TORNQUIST:· Okay.
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`·7· · · · · · ·MS. ZHONG:· So I think the question is for
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`·8· ·ZTE's counsel to make a representation of -- tell us
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`·9· ·what their position is, whether they do think they're a
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`10· ·really party interest to Samsung.· And we can proceed
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`11· ·from that.
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`12· · · · · · ·JUDGE TORNQUIST:· The final question, I
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`13· ·think -- I want to make sure I understand your
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`14· ·concern -- is that since we've already instituted, at
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`15· ·least in a couple of these cases, could Samsung
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`16· ·actually withdraw or must they be terminated under 317?
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`17· · · · · · ·Is that correct?
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`18· · · · · · ·MS. ZHONG:· Yes, whether they can just
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`19· ·withdraw without invoking 317(a).
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`20· · · · · · ·If that's possible, then, I guess we don't
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`21· ·need to reach the question of whether ZTE is a real
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`22· ·party interest or not, because then they cannot avoid
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`23· ·315(e) estoppel provision.
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`24· · · · · · ·JUDGE TORNQUIST:· I don't have my chart
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`25· ·handy.
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`·1· · · · · · ·Do you have the current status of the six
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`·2· ·cases that you've identified here for settlement?
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`·3· · · · · · ·MS. ZHONG:· Yes.
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`·4· · · · · · ·So IPR2018-00111, that one has been
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`·5· ·instituted; and the PRI is due on August the 8th, and
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`·6· ·LG was joined to that proceeding.
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`·7· · · · · · ·The IPR2018-00425, that one was instituted
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`·8· ·last Friday.
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`·9· · · · · · ·The other four are still pending.· No
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`10· ·decision has been made yet.
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`11· · · · · · ·JUDGE TORNQUIST:· Okay.· Let me shift now to
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`12· ·the ZTE Petitioner.· And I'll let all the Petitioners
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`13· ·have a say here, but it sounds like ZTE is the one that
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`14· ·Patent Owner is most concerned about.
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`15· · · · · · ·ZTE counsel, do you want to respond?
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`16· · · · · · ·MR. McMAHON:· Certainly, your Honor.· This is
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`17· ·Charlie McMahon from McDermott for the ZTE Petitioners.
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`18· · · · · · ·We've discussed this issue with counsel for
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`19· ·the Patent Owner.· And I don't think the parties have
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`20· ·any dispute about how the statutory provisions operate
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`21· ·between 315, 317 and 318.· So we discussed that. I
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`22· ·think we, pretty much, had an agreement.
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`23· · · · · · ·We just don't see any need for a stipulation
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`24· ·on this point at this time and agree with what, I
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`25· ·think, you were stating, your Honor, that it's
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`·1· ·premature for the Board to address any estoppel
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`·2· ·questions at this time.
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`·3· · · · · · ·So our position is there's no need to address
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`·4· ·this at this time.· If a dispute arises at some point
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`·5· ·in the future about estoppel, whichever tribunal is
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`·6· ·addressing that, can address it at that time.
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`·7· · · · · · ·JUDGE TORNQUIST:· What about the question of
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`·8· ·the relationship between ZTE and Samsung as being
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`·9· ·either real parties-in-interest or privies?
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`10· · · · · · ·MR. McMAHON:· So that's addressed in the
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`11· ·petitions, because ZTE and Samsung did coordinate on
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`12· ·filing these petitions, I think, under an
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`13· ·interpretation of real parties-in-interest, we were
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`14· ·real parties-in-interest.· And that's what we
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`15· ·represented in the petitions.
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`16· · · · · · ·So to the extent that answers your question,
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`17· ·that's the answer.
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`18· · · · · · ·I think as to how that relates to 317 and
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`19· ·318, I think the relationship between those provisions
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`20· ·is clear on when estoppel applies on a final written
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`21· ·decision.
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`22· · · · · · ·JUDGE TORNQUIST:· Okay.· Anything else you
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`23· ·want to address with regard to what Patent Owner
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`24· ·discussed?
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`25· · · · · · ·MR. McMAHON:· Unless you have further
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`·1· ·questions, no, your Honor.
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`·2· · · · · · ·JUDGE TORNQUIST:· Okay.· Let's shift over.
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`·3· · · · · · ·Samsung Petitioner, anything to add?
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`·4· · · · · · ·MR. GORYUNOV:· Your Honor, this is Eugene
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`·5· ·Goryunov, on behalf of the Samsung Petitioners.
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`·6· · · · · · ·You know, I think that while this is
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`·7· ·certainly a conversation to be had between Patent Owner
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`·8· ·and ZTE and whatever other entities, as Patent Owner
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`·9· ·indicated correctly, Samsung has settled and would like
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`10· ·to terminate its participation in these IPRs.
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`11· · · · · · ·And our understanding is that the right
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`12· ·mechanism to do so is Section 317 of the statute, which
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`13· ·provides for termination based on settlement.
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`14· · · · · · ·How that impacts anyone else is not something
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`15· ·that we're taking a position on.
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`16· · · · · · ·JUDGE TORNQUIST:· Okay.· And how about the
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`17· ·LG Petitioners?· Anything to add?
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`18· · · · · · ·MR. McCOMBS:· Your Honor, this is
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`19· ·David McCombs.
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`20· · · · · · ·I do not have anything to add.
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`21· · · · · · ·JUDGE TORNQUIST:· Okay.· Before the different
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`22· ·panels discuss this, Patent Owner, is there anything
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`23· ·else you'd like to address or respond to that you heard
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`24· ·from the Petitioners?
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`25· · · · · · ·MS. ZHONG:· The only thing I would like to
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`·1· ·add is that ZTE now has amended it's a real party
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`·2· ·interest to Samsung.· And it just appears that, based
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`·3· ·on their representation, they are going to invoke the
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`·4· ·317(a) shield to shield them from 315(e) estoppel
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`·5· ·provision.
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`·6· · · · · · ·We don't think that's what the Congress
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`·7· ·intended for the 317(a), to dismiss a Petitioner and
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`·8· ·allow its real party interest to remain in the
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`·9· ·proceedings.
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`10· · · · · · ·JUDGE TORNQUIST:· I guess the question, then,
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`11· ·becomes:· Are the current panels the ones to decide
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`12· ·that issue, or should we or can we decide that issue
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`13· ·now?
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`14· · · · · · ·MS. ZHONG:· I think the easiest way is if the
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`15· ·panel has a way to dismiss Samsung without invoking
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`16· ·317(a), that's probably the cleanest way to achieve the
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`17· ·goal that we need.
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`18· · · · · · ·JUDGE TORNQUIST:· Do you have any cases --
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`19· ·and I was thinking specifically about the '111 and
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`20· ·'425 cases that have instituted.
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`21· · · · · · ·Do you have any Board cases or any other
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`22· ·cases that would suggest that we can allow Samsung to
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`23· ·simply withdraw and not be terminated from the cases
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`24· ·under 317?
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`25· · · · · · ·MS. ZHONG:· I think that in one of the cases
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`·1· ·I read many years ago, there was a CBM case, where
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`·2· ·Apple wanted to withdraw to reconstitute the petition.
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`·3· ·The Patent Owner opposed.· And as a result, that court
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`·4· ·would not allow it.
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`·5· · · · · · ·But I wonder whether it could be done if the
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`·6· ·Patent Owner does not oppose such a withdrawal motion.
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`·7· ·And I think -- let me see if I can get the case number.
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`·8· · · · · · ·JUDGE TORNQUIST:· I'm aware.· I know the case
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`·9· ·you're talking about.· I don't have the number either,
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`10· ·but we can certainly bring it up.
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`11· · · · · · ·MS. ZHONG:· It's CBM-201400013, Paper 22, I
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`12· ·believe.
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`13· · · · · · ·JUDGE TORNQUIST:· Okay.· Anything else to
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`14· ·add, Patent Owner, before we discuss as a panel?
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`15· · · · · · ·MS. ZHONG:· Nothing.
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`16· · · · · · ·JUDGE TORNQUIST:· Okay.· Thank you.
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`17· · · · · · ·I'm going to put you on a brief hold.· And
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`18· ·the panels will discuss.· And we'll come back with a
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`19· ·ruling as to how we're going to move forward.
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`20· · · · · · ·(Recess taken.)
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`21· · · · · · ·JUDGE TORNQUIST:· Okay.· The panel is back on
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`22· ·line.
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`23· · · · · · ·Do we still have Petitioners on the line?
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`24· · · · · · ·So we have everyone, let's just go through
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`25· ·it.
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`·1· · · · · · ·Samsung?
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`·2· · · · · · ·MR. GORYUNOV:· Yes, your Honor.
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`·3· · · · · · ·JUDGE TORNQUIST:· Okay.· LG?
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`·4· · · · · · ·MR. McCOMBS:· Yes, your Honor.
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`·5· · · · · · ·JUDGE TORNQUIST:· And ZTE?
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`·6· · · · · · ·MR. McMAHON:· Yes, your Honor.
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`·7· · · · · · ·JUDGE TORNQUIST:· And how about Patent Owner?
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`·8· · · · · · ·MS. ZHONG:· Yes.
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`·9· · · · · · ·JUDGE TORNQUIST:· And the court reporter is
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`10· ·still on the line?
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`11· · · · · · ·THE REPORTER:· Yes.
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`12· · · · · · ·JUDGE TORNQUIST:· Sorry for the delay.
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`13· ·Sometimes it takes a while with multiple panels.
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`14· · · · · · ·The panels have conferred, and the decision
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`15· ·is that we are not the correct forum to decide the
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`16· ·question of RPI, privy and its association or effect on
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`17· ·317 and 315.· So we will not make a ruling on those.
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`18· · · · · · ·With respect to the question of withdraw or
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`19· ·terminate, Patent Owner, would it be acceptable to you
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`20· ·to file that request in the alternative in each motion?
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`21· · · · · · ·MS. ZHONG:· When you say, "file the request
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`22· ·in the alternative" --
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`23· · · · · · ·JUDGE TORNQUIST:· Sorry.· Let me explain
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`24· ·that.
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`25· · · · · · ·You're going to request that Samsung be
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`·1· ·removed from the cases due to settlement.· And you can
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`·2· ·request that either Samsung be withdrawn or, if
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`·3· ·withdrawal is not appropriate in the case, that they be
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`·4· ·terminated.
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`·5· · · · · · ·MS. ZHONG:· Yes, we can.
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`·6· · · · · · ·Also, for the ones that have not been
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`·7· ·instituted -- the four cases that have not been
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`·8· ·instituted, can Samsung be dismissed as opposed to
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`·9· ·terminated?
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`10· · · · · · ·JUDGE TORNQUIST:· I guess that's what we're
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`11· ·trying to say.
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`12· · · · · · ·You can file them in the alternative, which
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`13· ·are dismissal versus termination.· So you can request
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`14· ·that they be dismissed; but if that is not appropriate
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`15· ·in those cases, then be terminated.
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`16· · · · · · ·The question is -- what we're looking to do
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`17· ·is file a separate motion for each case so each panel
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`18· ·can make that decision on their own.
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`19· · · · · · ·MS. ZHONG:· Okay.· We can do that.
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`20· · · · · · ·JUDGE TORNQUIST:· Let's go ahead and let
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`21· ·Patent Owner finish, and then I'll let Petitioners
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`22· ·chime in.
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`23· · · · · · ·Anything else, Patent Owner?
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`24· · · · · · ·MS. ZHONG:· Yes.
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`25· · · · · · ·I just want to know, what will the motion be?
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`·1· · · · · · ·Will that be -- because under 317(a), it
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`·2· ·needs to be a joint request by the Petitioner and
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`·3· ·Patent Owner.
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`·4· · · · · · ·So the alternative that you're talking about,
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`·5· ·does it need to be a joint request as well?
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`·6· · · · · · ·JUDGE TORNQUIST:· I guess let's talk that
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`·7· ·through.
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`·8· · · · · · ·Is there any question that Samsung would not
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`·9· ·join such a request in the alternative?
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`10· · · · · · ·MR. GORYUNOV:· Your Honor, this is Eugene
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`11· ·Goryunov.
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`12· · · · · · ·So under Section 317 of the statute, it's
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`13· ·pretty clear that if an IPR is terminated -- and the
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`14· ·context is as to a Petitioner.· Under this section, no
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`15· ·estoppel under 315(e) attaches to the Petitioner.
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`16· · · · · · ·So Samsung has settled; therefore, it should
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`17· ·be terminated under the specific settlement provisions
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`18· ·of the statute, but with all of the conditions and so
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`19· ·on that apply to a party that has settled.
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`20· · · · · · ·Now, how that interfaces with the other
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`21· ·entities that are involved here, again, we don't have
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`22· ·an opinion on that.
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`23· · · · · · ·But, like I said, Samsung has settled; so we
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`24· ·should be terminated pursuant to the settlement
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`25· ·provisions.
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`·1· · · · · · ·JUDGE TORNQUIST:· Okay.· So what Samsung is
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`·2· ·saying is they do not want to be dismissed; they want
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`·3· ·termination under 317?
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`·4· · · · · · ·MR. GORYUNOV:· As to Samsung only.
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`·5· · · · · · ·JUDGE TORNQUIST:· Samsung only.
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`·6· · · · · · ·So that would potentially be a disagreement
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`·7· ·between Patent Owner now and Petitioner Samsung; so it
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`·8· ·might not be a joint motion.
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`·9· · · · · · ·MR. GORYUNOV:· Well, it seems to me that the
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`10· ·settlement agreement requires that we terminate as to
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`11· ·Samsung.· And we are totally on board with that,
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`12· ·your Honor.
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`13· · · · · · ·JUDGE TORNQUIST:· Okay.
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`14· · · · · · ·MS. ZHONG:· Your Honor --
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`15· · · · · · ·MR. GORYUNOV:· We're trying to -- one more
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`16· ·comment before I turn this back over to the panel and
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`17· ·to the Patent Owner.
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`18· · · · · · ·We're just trying to effect what the
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`19· ·settlement agreement requires.· We've settled.· It
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`20· ·requires termination as to Samsung, which is all we're
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`21· ·willing to do.· We're happy to do that immediately.
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`22· · · · · · ·JUDGE TORNQUIST:· Go ahead, Patent Owner.
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`23· · · · · · ·MS. ZHONG:· One thing I wanted to point out.
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`24· · · · · · ·I believe 317 only applies to institute IPRs;
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`25· ·so for the four not institute IPRs, I don't think it's
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`·1· ·necessary for the termination provision to apply.
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`·2· ·Plus, it gets into the settlement agreement; and I
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`·3· ·don't believe the settlement agreement calls for
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`·4· ·termination versus withdrawal.
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`·5· · · · · · ·JUDGE TORNQUIST:· Well, this is a question
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`·6· ·for Samsung and Patent Owner to work out themselves.
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`·7· ·We're not a party to that settlement.· And what you can
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`·8· ·or can't do under that, you will have to decide on your
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`·9· ·own.
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`10· · · · · · ·I guess the question is -- we are going to
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`11· ·authorize you to file a motion to terminate Samsung.
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`12· · · · · · ·If you wish to do that in the alternative as
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`13· ·a dismissal, the question was:· Would you like to do
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`14· ·that?
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`15· · · · · · ·MS. ZHONG:· Yes.
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`16· · · · · · ·JUDGE TORNQUIST:· The parties then have to
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`17· ·decide amongst themselves whether they actually can
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`18· ·under their agreement and the like.
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`19· · · · · · ·So we will authorize that motion.· But if
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`20· ·there's an opposition, that would be a different
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`21· ·question here.
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`22· · · · · · ·It should be a joint motion if you're going
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`23· ·to terminate.· And we prefer, as to Samsung and Patent
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`24· ·Owner, all the way across the board here, if you're
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`25· ·asking Samsung to be terminated or withdrawn from this
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`·1· ·case.
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`·2· · · · · · ·So, I guess, then the question is:· How would
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`·3· ·you like to proceed, Patent Owner?
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`·4· · · · · · ·In this situation, do you still want to file
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`·5· ·the motion to terminate withdrawal?
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`·6· · · · · · ·MS. ZHONG:· Patent Owner definitely wants to
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`·7· ·have the alternative to seek to dismiss Samsung without
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`·8· ·invoking 317(a).
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`·9· · · · · · ·JUDGE TORNQUIST:· Okay.
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`10· · · · · · ·MR. GORYUNOV:· Your Honor, I apologize.· This
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`11· ·is counsel for Samsung.
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`12· · · · · · ·JUDGE TORNQUIST:· Okay.
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`13· · · · · · ·MR. GORYUNOV:· My question is this -- and
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`14· ·maybe -- if we can get an answer to this, this may
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`15· ·resolve the concern that I have.
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`16· · · · · · ·JUDGE TORNQUIST:· Okay.
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`17· · · · · · ·MR. GORYUNOV:· So we have currently two
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`18· ·options on the table:· Terminate as to Samsung under
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`19· ·317, which is what Samsung and Patent Owner are on
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`20· ·board with; but the alternative option is to have
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`21· ·Samsung withdraw from the IPR.
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`22· · · · · · ·My question is:· Would the Board treat that
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`23· ·as normal termination, or would the Board treat that
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`24· ·under a different provision of the statute?
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`25· · · · · · ·In other words, we don't want to be in a
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`·1· ·situation where Samsung's withdrawal is treated as some
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`·2· ·kind of an admission or a request for adverse judgment
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`·3· ·or anything like that.
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`·4· · · · · · ·JUDGE TORNQUIST:· Right.
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`·5· · · · · · ·You want to make sure that you get the
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`·6· ·benefit of the language of 317?
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`·7· · · · · · ·MR. GORYUNOV:· Correct.
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`·8· · · · · · ·And, you know, if -- assuming that withdrawal
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`·9· ·of Samsung would not carry additional repercussions,
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`10· ·that could work as well.· But this is one part that is
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`11· ·just not clear for us.
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`12· · · · · · ·JUDGE TORNQUIST:· Right.
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`13· · · · · · ·And the problem that we have is we have
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`14· ·multiple panels and different facts for different
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`15· ·cases.· So that's why we were looking to see if you
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`16· ·would file the motions before the different panels so
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`17· ·each panel could decide that question.
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`18· · · · · · ·And, I guess, that is the problem that now
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`19· ·faces us.
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`20· · · · · · ·So, Patent Owner, what do you propose to do
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`21· ·here?
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`22· · · · · · ·MS. ZHONG:· If what Samsung's concern is
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`23· ·they're not going to get a 315(e) estoppel
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`24· ·non-attachment, we can make it clear in a joint request
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`25· ·that by the provision of this request, no estoppel
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`·1· ·under Section 315(e) shall attach to Samsung as privy
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`·2· ·and real party interest except in ZTE.
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`·3· · · · · · ·And I don't know whether that's acceptable to
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`·4· ·Samsung or not or whether we can make joint --
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`·5· · · · · · ·MR. GORYUNOV:· The concern there is that now
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`·6· ·we're getting into status of Samsung as alleged privy,
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`·7· ·alleged real party interest.· And, again, this is not
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`·8· ·something that we believe needs to be touched upon.
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`·9· · · · · · ·We've settled.· We have an obligation to
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`10· ·terminate as to Samsung, and we definitely want to get
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`11· ·that done ASAP.
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`12· · · · · · ·So the simplest way, in our view, is to do a
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`13· ·317 settlement termination, which we have a settlement,
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`14· ·which I think everyone agrees is binding.· We just want
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`15· ·out.
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`16· · · · · · ·JUDGE TORNQUIST:· I understand.
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`17· · · · · · ·And -- okay.· Let me -- since we've, kind of,
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`18· ·had a fair amount of back and forth here, I'm going to
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`19· ·put you back on hold one more time so the panels on
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`20· ·these different cases can confer and see how we want to
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`21· ·handle this.· I think we understand the issues and the
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`22· ·problems and the concerns of the parties.
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`23· · · · · · ·We're going to put you on hold one more time.
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`24· · · · · · ·(Recess taken.)
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`25· · · · · · ·JUDGE TORNQUIST:· Okay.· The panel is back
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`·1· ·from the conference.· Let's just do a quick rollcall
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`·2· ·again.
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`·3· · · · · · ·Petitioner Samsung?
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`·4· · · · · · ·MR. GORYUNOV:· Here, your Honor.
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`·5· · · · · · ·JUDGE TORNQUIST:· And ZTE?
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`·6· · · · · · ·MR. McMAHON:· Yes, your Honor.
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`·7· · · · · · ·JUDGE TORNQUIST:· And LG?
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`·8· · · · · · ·MR. McCOMBS:· Yes, your Honor.
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`·9· · · · · · ·JUDGE TORNQUIST:· And Patent Owner?
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`10· · · · · · ·MS. ZHONG:· Yes, your Honor.
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`11· · · · · · ·JUDGE TORNQUIST:· And the court reporter?
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`12· · · · · · ·THE REPORTER:· Yes, your Honor.
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`13· · · · · · ·JUDGE TORNQUIST:· The panels have conferred.
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`14· ·And what we're going to do on this issue is take it
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`15· ·under advisement.· We have multiple panels here.· And
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`16· ·what we're going to do is issue either an order and
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`17· ·e-mail in due course letting you know what our decision
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`18· ·is or giving you guidance.
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`19· · · · · · ·Now, I understand that there's a timing issue
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`20· ·under the parties' agreement.
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`21· · · · · · ·So when does a motion need to be on file?
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`22· · · · · · ·MS. ZHONG:· Friday, the latest, I believe.
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`23· · · · · · ·JUDGE TORNQUIST:· So tomorrow?
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`24· · · · · · ·MS. ZHONG:· Yeah.
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`25· · · · · · ·JUDGE TORNQUIST:· Okay.· And, Samsung, do you
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`·1· ·agree with that?
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`·2· · · · · · ·MR. GORYUNOV:· Yes, your Honor.
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`·3· · · · · · ·JUDGE TORNQUIST:· Okay.· So we will move --
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`·4· ·we'll take this under advisement and move quickly to
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`·5· ·give the parties guidance for moving forward with their
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`·6· ·motion.
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`·7· · · · · · ·Okay.· Petitioners -- Samsung, any questions?
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`·8· · · · · · ·MR. GORYUNOV:· No, your Honor.· Thank you.
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`·9· · · · · · ·JUDGE TORNQUIST:· ZTE?
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`10· · · · · · ·MR. McMAHON:· No, your Honor.· Thank you.
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`11· · · · · · ·JUDGE TORNQUIST:· LG?
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`12· · · · · · ·MR. McCOMBS:· No, thank you.
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`13· · · · · · ·JUDGE TORNQUIST:· Patent Owner?
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`14· · · · · · ·MS. ZHONG:· Nothing, your Honor.· Thank you
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`15· ·very much.
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`16· · · · · · ·JUDGE TORNQUIST:· Okay.· Thank you.
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`17· · · · · · ·With that, this call will be adjourned; and
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`18· ·we will be in contact shortly.
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`19· · · · · · ·Thank you very much.
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`20· · · · · · ·(Whereupon, the telephonic hearing
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`21· · · · · · ·concluded at 10:43 a.m.)
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`22· · · · · · · · · · · · · · -o0o-
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`·1· · · · · · ·I, DENISE A. ROSS, a Certified Shorthand
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`·2· ·Reporter for the State of California, do hereby
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`·3· ·certify:
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`·4· · · · · · ·That said telephonic hearing was taken before
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`·5· ·me at the time and place therein set forth and was
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`·6· ·taken down by me in shorthand and thereafter reduced to
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`·7· ·typewriting via computer-aided transcription under my
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`·8· ·direction;
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`·9· · · · · · ·I further certify that I am neither counsel
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`10· ·for, nor related to, any party to said action, nor in
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`11· ·anywise interested in the outcome thereof.
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`12· · · · · · ·IN WITNESS WHEREOF, I have hereunto subscribed
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`13· ·my name this 13th day of July, 2018.
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`· · · · · · · · · · · · · _________________________
`18· · · · · · · · · · · · · · Denise A. Ross
`· · · · · · · · · · · · · · · CSR No. 10687
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