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`UNITED STATES PATENT AND TRADEMARK OFFICE
`______________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________
`
`APPLE INC.,
`Petitioner,
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`v.
`
`UNILOC 2017 LLC,
`Patent Owner.
`______________
`
`Case IPR2018-00884
`Patent 8,539,552 B1
`______________
`
`Record of Oral Hearing
`Held: July 15, 2019
`______________
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`
`
`Before SALLY C. MEDLEY, KARL D. EASTHOM, and
`SEAN P. O'HANLON, Administrative Patent Judges.
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`Case IPR2018-00884
`Patent 8,539,552 B1
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`ADAM P. SEITZ, ESQ.
`PAUL R. HART, ESQ.
`Erise IP
`7015 College Boulevard, Suite 700
`Overland Park, Kansas 66211
`(913) 777-5600
`adam.seitz@eriseip.com
`paul.hart@eriseip.com
`
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`BRETT MANGRUM, ESQ.
`Etheridge Law Group
`2600 E. Southlake Boulevard, Suite 130
`Southlake, Texas 76092
`469-401-2659
`brett@etheridgelaw.com
`
`
`
`
`The above-entitled matter came on for hearing on Monday, July 15,
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`2019, commencing at 1:00 p.m. at the U.S. Patent and Trademark Office,
`600 Dulany Street, Alexandria, Virginia.
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`P R O C E E D I N G S
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`1:02 p.m.
`JUDGE O'HANLON: Please be seated. Good afternoon, everyone.
`This is a hearing in Case Number 2018-00884, Apple, Inc. versus Uniloc
`2017, LLC, formerly Uniloc Luxembourg SA.
`I'd like to begin by having counsel for the parties introduce their
`selves. Beginning with the Petitioner, please?
`MR. SEITZ: Good afternoon, Your Honors. Adam Seitz for
`Petitioner Apple. With me is my partner, Paul Hart. And then behind me is
`Ben Huh from Apple, in house counsel.
`JUDGE O'HANLON: Thank you. And Patent Owner?
`MR. MANGRUM: Good afternoon, Your Honors. Brett Mangrum.
`I'm with the Etheridge Law Group. I'll be representing the Uniloc entities
`today.
`
`JUDGE O'HANLON: Thank you. I'm Judge O'Hanlon. I'm joined
`on my right by Judge Medley. On my left I have Judge Easthom.
`Per our order dated June 11, each side will have 45 minutes to argue.
`Petitioner will go first. Patent Owner will go second. Either side can
`reserve time for rebuttal.
`If you run over during your argument in chief, I will reset the clock
`with your reserve time. I will endeavor to let you know when that happens,
`but please be mindful of the clock and the lamps.
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`As usual, speaking objections are not allowed. If you have anything
`to note, you can do so during your time to argue. And I'll also ask counsel
`who are referencing demonstratives to please note the slide number for the
`record.
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`And with that I'll ask Mr. Seitz to begin. Would you like to reserve
`any time for rebuttal?
`MR. SEITZ: I'd like to reserve 15 minutes, please, Your Honor.
`JUDGE O'HANLON: Fifteen minutes.
`MR. SEITZ: And as a matter of housekeeping, I have paper copies
`of the demonstratives. So, I know most people prefer electronic these days.
`But if any of Your Honors prefer paper, I certainly have them available.
`JUDGE O'HANLON: I think we're set with our electronic copies.
`MR. SEITZ: Very good.
`JUDGE O'HANLON: So you said 15 minutes. So I'll set the clock
`for 30. Please begin.
`MR. SEITZ: Thank you, Your Honors. May it please the Court.
`I'd like to start today referring to demonstrative two, with an
`understanding of the purpose of the ’552, the solution it was trying to solve.
`And then compare that to the primary reference that we'll be discussing
`today, which is the Kalmanek reference.
`During the course of the briefing there was some discussion on
`whether these two references are even solving the same problem or
`addressing the same issue. And I want to start there to set our discussion for
`the rest of the day.
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`So the ’552 patent teaches a centralized service authentication that is
`designed to prevent theft by intelligent end points. So the intelligent end
`points in the ’552 patent are what we would look at today as IP phones.
`They are smarter phones that have much more processing capability.
`That can handle the call set up and much of the signaling that traditionally
`would have been taking place on a network by a service provider.
`These phones, however, have that processing capability. Could set
`up phone calls amongst themselves, and in doing so, would cut out the
`service provider and the revenue they would have made from otherwise
`allowing certain services, call waiting, caller ID, those types of traditional
`services.
`So the invention of the ’552 was directed at using a central service
`authentication that would intercept signals from these intelligent end points.
`And then authorize the services.
`I'm going to jump forward to demonstrative four. Which is Figure 1
`of the ’552 patent. It provides the basic network architecture for how this is
`accomplished in the ’552 system.
`Here, depicted in blue, are two intelligent end points, two user
`phones. They are communicating with each other through the core packet
`network.
`You access the core packet network through the border elements,
`which are depicted in green. And then in the yellow box, at the top of EX-4
`are the components in the system that are responsible for intercepting the
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`signaling, and then authorizing and filtering the services that would or would
`not be available to those particular users.
`Kalmanek is directed at the same issue. Kalmanek also teaches a
`centralized service authentication that's directed at preventing theft by
`intelligent inputs.
`On DX-3 we can see a quote from Kalmanek at column three that
`talks about allowing the intelligent end points to participate in the supporting
`features of the provided services. Again, the same idea of smart end points
`that are able to set up and arrange calls themselves.
`And as Kalmanek goes on, it says, embodiments of the present
`invention protects against theft of service. It does this with a network
`architecture, jumping forward to slide five, that's very similar to the ’552
`patent.
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`As you can see here, I've used the same color boxes to help guide the
`discussion. It has the smart, or the intelligent end points depicted in blue,
`telephones 190 and 191. They communicate with each other through the
`communications network in the center of the figure. Which is figure 1 from
`Kalmanek.
`They access that through the network edge devices. And then the
`gate controller with its databases that are depicted in the yellow box,
`intercept the signaling messages and perform the authentication and the
`filtering for determining whether that user is authorized to provide those
`services.
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`Now there's three primary disputes that I'm going to walk through
`today. Here we're going to be talking about looking at claim one on slide six
`of the ’552 patent.
`We have a dispute relating to the term intercepting. It's a question of
`whether there's a network entity in Kalmanek that intercepts a signaling
`message.
`The dispute that I've referred to here is indicating services. That
`signaling message that is sent, must indicate the services for which the caller
`wants to use, such as call waiting or caller ID that are called out later in the
`claim.
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`And then there's a filtering that takes place. Which is the final
`limitation. And the question on the filtering is one of after you've
`determined whether the user is authorized to provide services, of either
`allowing those services, or potentially modifying the message, the signaling
`message if the user is not authorized for those.
`And I want to start here before we get into intercepting with just a
`basic flow structure of how a call would take place in the ’552 patent. We
`have a sender device, which I'll refer to as the caller. And we have an
`intended recipient device, which is the callee's device.
`The caller, the sender device is going to initiate a phone call. At
`which point a signaling message is going to be generated. The network
`entity in claim one is going to intercept that signaling message. And it's
`going to look at the services that are then requested as part of that message.
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`Those will indicate according to the claim, things such as caller ID, call
`waiting, multi-wait calling, and other services.
`That network entity, the same one that did the intercepting, is then
`going to make a determination of looking at user profiles, to see is that user
`authorized, have they paid for that particular service.
`And then the final step is a filtering that takes place. So that
`signaling message, that set message to say, okay, if you are authorized, I'm
`going to allow the message to go through. Or potentially have modifications
`to that message.
`But I start here, because the question of intercepting is not one of
`what intercepts in a vacuum. The network entity that intercepts must also be
`performing these determining and these filtering steps.
`Moving to slide seven, I want to start with intercepting. We have
`proposed a construction of intercepting that's receiving by a network entity
`located between the end points of the call.
`So as we're going to get into in the next few slides, we are saying
`intercepting is receiving. But there's a specific where that's taking place here
`as well under our claim construction. And that is between the end points of
`the call. Between the sender device and the intended recipient device, which
`is the caller device and the callee device.
`Now Patent Owner has not provided a formal construction of
`intercepting. Their arguments suggest that intercepting can occur only if the
`sending device does not intend the signal to be intercepted.
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`In their sur-reply they stated it by saying the intercepting occurs in a
`manner transparent to the end user client. To the -- what I believe they're
`arguing here is that transparency.
`Uniloc would be arguing that as the call perceives the caller device,
`the sender device doesn't specifically send any messages to the networking
`entity. Or it doesn't intend for the networking entity to receive the signaling
`message.
`So let's take a look at specifically what we have from the ’552 patent
`here. On slide eight, there are only three instances of intercept that are used
`in the ’552 patent. And as we'll see, none of them demand this idea of a
`transparency that Uniloc is proposing here. Everywhere that the term
`intercepting is used in the ’552 patent it's synonymous with received. And
`then we also see that where the term intercept is used in the ’552 patent that
`there's a specific location. Which is between the end points of the call, the
`sender device and the intended recipient.
`So, if we look at the two specific examples here, which include our
`three citations of intercepting, we see on slide eight, the first citation comes
`from column three of the ’552 patent.
`The signaling and call control server intercepts call set up messages
`between the end user client. So this tells us the where. It's an intercepting
`that's occurring between the end user clients, the caller device and the callee
`device.
`We see in the second citation on slide eight, a reference from column
`eight of the ’552 patent, that talks about how signaling and call control
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`messages are received or intercepted by the policy enforcement point, which
`maybe a border element between a local network and the core network.
`So here we also see again the concept of between the end points.
`And importantly, we see here the concept of receiving and intercepting
`being used synonymously.
`What is never done here is this concept. And what's never discussed
`in the ’552 patent is this concept of transparency that Uniloc is proposing. It
`is never discussed or mentioned in any of the examples in which intercept is
`used.
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`Well, there's two main mischaracterizations that Uniloc has made
`with regard to intercepting. First, they suggest that we are saying that
`intercepting is merely receiving a message.
`Second, and I'm reading from slide nine, they say that we have
`construed intercepting as merely routing. They're very similar. And I want
`to address both of those here.
`The first argument is that intercepting is merely receiving. We are
`not suggesting that intercepting means merely receiving. Our construction
`and our position have been that there is a specific location at which that
`intercepting needs to take place.
`Yes, the ’552 patent does require intercepting to be receiving. But
`it's specific about what and where it is doing that receiving.
`And so, as we can see here, and going back, namely the where and
`what is an intermediary device between the end points of the call. So, we've
`created this graphic. It was in our -- it was in our briefing.
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`Our point here is that intercepting and receiving can be done by a
`network entity that's between the end points. But receiving can only be done
`by the ultimate intended recipient, the destination of that call. So here the
`intermediate devices can receive and intercept. But the intended recipient
`can only receive.
`JUDGE EASTHOM: Doesn't the interceptor in the claim also
`perform the policy enforcement?
`MR. SEITZ: Yes. That is correct. That same network entity
`intercepts. That same network entity makes a determination. And that same
`network entity filters.
`JUDGE EASTHOM: And you contend Kalmanek does that too, is
`that right?
`MR. SEITZ: I'm sorry, one more time with that?
`JUDGE EASTHOM: You contend that prior -- is it Kalmanek? Is
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`that?
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`MR. SEITZ: Kalmanek, yes.
`JUDGE EASTHOM: You contend Kalmanek's controllers are gate
`controllers, is that right?
`MR. SEITZ: Correct.
`JUDGE EASTHOM: Okay.
`MR. SEITZ: So part of the confusion here relating to intercepting
`relates to the intended recipient. We believe the ’552 patent is clear that the
`intended recipient is the end caller device. I'm sorry, end callee device. It's
`the intended recipient of the phone call.
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`Patent Owner's construction or arguments have seemed to rewrite
`intended recipient to target the recipients, each recipient in the network of
`the setup message. So that each of the intermediate devices that a set up
`message would hit whether they're proxy servers or edge controllers or
`routers, would be an intended recipient.
`And that is not the manner in which intended recipient is used in the
`’552 patent. In every instance of the ’552 patent, the intended recipient is
`the end point of the call, the callee and their device.
`So looking --
`JUDGE O'HANLON: Can you switch back to slide 10 for a mom --
`or, I'm sorry, slide 11 for a moment, please.
`MR. SEITZ: Yes.
`JUDGE O'HANLON: I believe Patent Owner's argument is that
`each of those different colored arrows represent different set up messages.
`In other words, a first set up message is sent from a caller to the intermediate
`device. And then a separate set up message is then sent to the next device
`on the line. How would you respond to that contention?
`MR. SEITZ: So, there are set up messages. If we're talking about
`Kalmanek in specific, there are set up messages that are sent from the
`originating telephone to the gate controllers.
`From the gate controller, the originating gate controller to the
`terminating gate controller. And then from the terminating gate controller to
`the terminating telephone.
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`Those are the same message. And I'll get into that to show you later.
`But the ultimate intended recipient in Kalmanek is still the end user's phone.
`And we see that from the messages that are sent in Kalmanek. Where the
`intended recipient is the end of the line. Who I'm trying to call.
`It's very clear from the set up messages in Kalmanek when it
`identifies the intended user. And I don't have the set up message here. But
`it identifies the intended user by their phone number, or by their address
`where they can be reached.
`So, you can't rewrite intended recipient to make it each one of the
`intermediate devices, because the ’552 patent is clear that the intended
`recipient is the actual end user.
`JUDGE O'HANLON: Is it your position that the same set up
`message is forwarded from the caller through the intermediate devices to the
`callee?
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`MR. SEITZ: Yes.
`JUDGE O'HANLON: Okay.
`MR. SEITZ: So if I look at slide 12, we can see here how the
`intended recipient is used in the ’552 patent. And just briefly we see on
`slide 12, a reference from column eight, the intended recipient is an
`authorized subscriber.
`The intended recipient has a user profile. And then in the second
`reference at column 15 of the ’552 patent, we see the feature or services to
`be delivered to both sender and intended recipient of the message.
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`So, what we see from the ’552 patent in every instance in which it’s
`talking about the intended recipient, is that it's the end person that you're
`trying to communicate with. That intended recipient, the callee's device. It
`is not each intermediate stop along the way.
`So, transitioning from intercepting does not mean receiving. I want
`to briefly touch the second argument of intercepting is more than routing.
`As we understand Uniloc's argument, they're arguing that the
`claimed network entity that does the intercepting must do more than just
`route the message along. And we would agree. And that is what Kalmanek
`does here. I have displayed on slide 13, Figure 3 from Kalmanek, an excerpt
`of Figure 3 from Kalmanek, as well as a portion of the specification from
`column 48.
`And what we see from Figure 3 is a flow of the message. And then
`what we see from the column 48 is it tells us the processing of the message.
`So in Kalmanek, as we've already discussed, the initiating telephone
`collects the dialed digits. It forwards a set up message to the, what they refer
`to as GCo, gate controller originating.
`The GCo then sends a set up message to the GCt, which, Your
`Honor, is the same message in Kalmanek. It is the same message, the same
`information that's going through. And then the GCt, the gate controller
`terminating, forwards that message to the terminating telephone. So that
`tells us the basic flow of the messaging, the signaling in Kalmanek.
`The portion from 48 tells us that these gate controllers are doing far
`more than just forwarding something along. They tell us that the gate
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`controllers, the originating gate controllers authenticate the telephone upon
`receipt of a set up message.
`And then, importantly, they tell us that they perform service specific
`emission control, which Kalmanek goes on to describe as the authorization
`of whether the services that the user is requesting are authorized. Are
`allowed under their contract with their service provider. Can we provide the
`call waiting, or the call blocking, or a specific codec for a bandwidth that the
`user is collecting?
`That authorization, that determination and filtering is done by the
`gate controllers in Kalmanek. So they're doing far more than just routing.
`Finally, I want to briefly address Dr. Easttom. Dr. Easttom was
`Uniloc's expert in this case. We would ask the Board to disregard any of his
`testimony. They're only relying at this point on paragraphs eight and nine of
`his declaration. As a brief sort of step back, we had originally requested his
`deposition in February of this year.
`Uniloc agreed with us that it would be easier to strike his declaration
`given the limited portion that they'd relied on. And we jointly approached
`the Board with that request to strike. The Board denied that request because
`the discovery period was still open. And invited the parties to raise it again
`if there was an issue.
`I'm doing so, just briefly, Your Honors. We were never provided an
`opportunity to depose him, despite repeated requests.
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`We were not told that we could depose him until less than 24 hours
`the day before in a different location. When we declined that, because it was
`such short notice, we were told he was no longer available.
`So, I would ask Your Honors to disregard any sort of testimony or
`reliance from Dr. Easttom here.
`JUDGE O'HANLON: Mr. Seitz, are either you or your co-counsel
`located in Dallas?
`MR. SEITZ: No, Your Honor. I'm located in Kansas City. My co-
`counsel, Mr. Hart, is located in Denver.
`JUDGE O'HANLON: Thank you.
`MR. SEITZ: Moving onto the next limitation, which are the
`indicating services. I've highlighted in blue on slide 15 that the signaling
`message includes an indication of one type of a plurality of services which
`the signaling message is intended to invoke.
`So again, stepping back, the caller makes a call. It includes a set up
`message. That set up message must indicate that the services -- indicate the
`services that the user wants us use, call waiting for example.
`And we're told later in the claim what those can be. We're going to
`focus on call waiting. And then we're also going to focus on the codec that's
`specifically called out in the claim as well, the codec specification.
`On slide 16 I'd like to start with caller ID. Caller ID, we've mapped
`two different instances of caller ID. There's the basic caller ID that we're all
`familiar with, a name or a number shows up on your phone when you get a
`phone call.
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`The other type of caller ID is a subset of that, which is caller ID
`blocking. It's where someone specifically says, I'm going to call you, but I
`want my number to be blocked so you cannot see who's calling.
`Now, starting with the caller ID blocking on slide 16, what we've
`indicated here, in the middle of the page, is a citation from Kalmanek that
`shows the set up message that's going from a date controller to the ultimate
`terminating telephone.
`So you're going from the terminating date controller to the
`terminating telephone. And you'll see that Kalmanek provides at column 25
`a description of what's actually in that set up message.
`One of the things in the set up message that you can see appears on
`the right side of the screen in all caps. And its caller, followed by a phone
`number afterwards.
`This is the indication of the original sender. The original caller who
`is making the call to the intended recipient. So we see here the message, and
`its message structure includes information that would be used for caller ID.
`Kalmanek goes on to tell us that if caller blocking has been
`requested, that field will be changed to anonymous. Which is what I've
`highlighted in green here.
`If they've specified caller ID blocking, the phone number after caller,
`will be removed. And caller -- the number will be replaced with
`anonymous, which is going to result in your call blocking for the caller ID.
`But Kalmanek tells us that there is two different ways that you can set up
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`that caller blocking. We've relied on Avi Rubin, our expert, to help clarify
`this.
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`And that is invoked by the caller either in the initial set up, so in the
`initial set up message, when the caller picks up their phone, they request the
`service of blocking caller ID. Or it can also be done in the settings where
`the gate controller could receive the set up message from the caller. It could
`look to the user's profile and see that this is a user whose profile indicates
`that they want to block caller ID.
`JUDGE O'HANLON: It's your position that caller ID blocking is a -
`- I forgot the word you --
`MR. SEITZ: A subset.
`JUDGE O'HANLON: A subset of caller ID?
`MR. SEITZ: Yes.
`JUDGE O'HANLON: Does the fact that, I believe the ’552 patent
`associates caller ID with the receiving telephone and caller ID blocking with
`the initiating telephone.
`Does the fact that those two services, or sub-services are associated
`with different devices effect that? How does that factor into your argument
`that one is a subset of the other?
`MR. SEITZ: So, you're still looking at the question of the claims.
`Which are making a determination. If I look at the claim, the network entity
`makes a determination of whether your type of service is allowed.
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`And so we're going to perform that authorization. So in Kalmanek
`we see that the end user, if I flip forward, Your Honor, to slide 21. And it's
`depicted on the screen here, from Figure 23.
`The end user in Kalmanek, in responding to a set up message, will
`tell the gate controller that I am a caller ID subscriber. And I am requesting
`the caller ID information.
`We will see from the -- from the caller that they are not authorized to
`provide that service. And so, I believe it still fits under the claims in that
`manner by filtering and excluding that from the set up message and the
`signaling message that will go through.
`JUDGE O'HANLON: So the calling party is not authorized to
`provide the caller ID information?
`MR. SEITZ: They have said -- yes. Not authorized to provide that,
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`yes.
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`JUDGE EASTHOM: That's separate from that anonymous aspect
`you were talking about?
`MR. SEITZ: That would be the anonymous.
`JUDGE EASTHOM: Oh.
`MR. SEITZ: Where you're saying I'm not authorized to provide my
`caller ID.
`JUDGE EASTHOM: Okay.
`MR. SEITZ: We also have basic caller ID in Kalmanek. So there's
`call blocking, but then there's also the caller ID itself, which we're more
`familiar with, which is disclosed in Kalmanek. And that's on slide 17.
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`Now slide 17 refers to the codec as well. So there's the codec
`analysis here. And there's the caller ID. The codec, I'm sorry, the caller ID,
`we look at the same message.
`This one, Your Honors, you'll notice it's the same. I've told you it's
`the same as it goes through. This time it's from the phone -- the originating
`telephone to the originating date controller. And that includes your set up
`message.
`And again, it includes the caller field, including the caller's phone
`number. And the ’552 patent tells us that, at line 50, the ability to deliver
`caller ID on a given call can be discerned by examining the invite message,
`which would be the set up message. And they said that it can be something
`as simple as the from field. That again, is at column 12, line 50, starting the
`discussion on caller ID.
`The from field, disclosed in the ’552 is exactly what the caller field
`is here that would say, I am requesting a caller ID service to be provided.
`We also on this same slide, at 17, see the codec. Now the codec
`specification is one of the other services that's listed in the claim as one that
`a user can request. And the codec specification can cover things such as the
`compression or bandwidth that would be allowed for the phone call.
`And here, looking at the same set up message going from the
`originating telephone to the originating gate controller, it will include the
`field at the very bottom, highlighted in green, which is called coding. And it
`will reference G.711, which is the codec that that user is requesting
`authorization to use in the phone call.
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`So, we can see from those examples that the original signaling
`message, the set up message in Kalmanek, includes those requests for those
`three types of services.
`Finally, filtering. Filtering is what does the authorization we've been
`referring to today. The filtering is going to authorize or allow the message
`based on whether the device is authorized, or they paid for those services.
`Which is where you get the prevention of the stealing of services, the theft of
`services.
`So first we need to understand how the filtering is applied in the ’552
`patent. The claim itself indicates that we're going to filter the signaling
`message.
`JUDGE EASTHOM: What slide are we on, please? I'm sorry.
`MR. SEITZ: I'm sorry? One more time now?
`JUDGE EASTHOM: What slide are we on?
`MR. SEITZ: Oh, I'm sorry. Yes. Slide 19.
`JUDGE EASTHOM: Thank you. I appreciate that.
`MR. SEITZ: On slide 19 I want to talk first about what the claim
`says. So we're filtering the signaling message. And if either the sender
`device or the intended recipient device is authorized to invoke the type of
`service indicated. So they're going to filter based on this, who's authorized
`to have this service.
`And the question of filtering here is one of, okay, what does filtering
`mean? Now traditionally when you think of filtering, you might think of
`pouring a liquid or something else through a filter where certain things in
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`your liquid are prevented from going through, or the message is altered in
`some way.
`The ’552 patent is broader in its definition of filtering here. We see
`on slide 19, on the bottom portion of the page, a citation from column 16 of
`the ’552 patent, at lines 19 to 27.
`It specifically tells us, highlighted in green, that a filtering action
`maybe one of two things. Forwarding the message on unaltered to the next
`top. Or, forwarding the message on with alterations. So we see that
`filtering, that final claimed filtering in the ’552 patent can either be just
`forwarding the message on unaltered.
`The example that you might think of that we'll get into, is if the
`service is fully authorized. Or it might be forwarded on with alterations
`depending on what the user is or is not authorized to do.
`So the ’552 patent contemplates both of those scenarios for its
`filtering. Looking at slide 20 we see two messages and then we see a
`quotation from Kalmanek on the bottom.
`And I'm going to look at the filtering first as it relates to the codec.
`And then I'll come back and talk about the filtering as it relates to the caller
`ID.
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`And so if we start at the bottom side of the page with Kalmanek, to
`get an understanding of what the gate controllers are doing, I think that will
`help guide the analysis of these messages that are taking place between the
`gate controllers and the telephones.
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`So, shown at the bottom is a citation from column 10 of Kalmanek.
`And it tells us,