throbber

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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
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`––––––––––
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`––––––––––
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`NETFLIX, INC.,
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`Petitioner,
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`v.
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`REALTIME ADAPTIVE STREAMING, LLC,
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`Patent Owner.
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`––––––––––
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`Case No. 2018-01187
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`U.S. Patent 9,769,477
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`––––––––––
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`
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`PETITIONER’S REPLY TO PATENT OWNER’S RESPONSE
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`TABLE OF CONTENTS
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`IPR2018-01187 Reply
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`Page
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`I.
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`II.
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`Introduction ...................................................................................................... 1
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`Limitation 1[b] is rendered obvious by Imai and Pauls. ................................. 2
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`A.
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`B.
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`C.
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`Imai and Pauls teach systems designed to include multiple
`encoders having different data compression rates. ............................... 3
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`Realtime’s argument that the term “configured to” requires
`showing an “intentional design choice” is not supported. .................... 7
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`The difference in the encoders’ data compression rates do not
`arise “by happenstance” nor “as a side effect.”..................................... 8
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`1.
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`2.
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`3.
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`The prior art teaches intentionally using two encoders
`having different data compression rates. .................................... 9
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`The prior art teaches that choosing between encoders that
`have different data compression rates allows a system to
`better match an incoming data stream to the rate of a
`communications channel. .......................................................... 11
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`A POSITA would have understood that different
`encoders (such as those described in Imai) would have
`different data compression rates. .............................................. 13
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`III. A POSITA would have been motivated to combine Imai and Pauls. ........... 16
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`IV. The additional limitations of claim 20 are rendered obvious by Imai
`and Pauls. ....................................................................................................... 20
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`A.
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`B.
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`Imai teaches intentionally including two encoders that have
`different compression ratios, in addition to encoders that have
`varying compression rates. .................................................................. 20
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`A POSITA would have known how to use JPEG to encode
`video. ................................................................................................... 22
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`V. A POSITA would have been motivated to combine Chao with Imai
`and Pauls. ....................................................................................................... 23
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`VI. Conclusion ..................................................................................................... 24
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`IPR2018-01187 Reply
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`I.
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`Introduction
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`Realtime’s POR in this proceeding and the related IPR2018-01630
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`proceeding raise substantially the same arguments. Realtime’s expert admitted that
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`Imai teaches switching compression encoders based on the throughput of a
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`communications channel, that it teaches including multiple encoders in a system,
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`and that each encoder should use a different coding method. Ex. 1029 at 129:11-
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`19, 130:22-131:3, 131:4-17. In addition, Realtime does not dispute the correctness
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`of any of Netflix’s claim constructions.
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`Realtime primarily disputes whether a POSITA would have found it obvious
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`to include in a video/image compression system two different compression
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`encoders that have different data compression rates (for independent claim 1), or
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`two different compression encoders that have different data compression ratios (for
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`independent claim 20). But as Realtime’s own expert conceded, encoders (even
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`those implementing the same algorithm) inevitably have different compression
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`rates and ratios. Id. at 68:24-70:21, 71:23-72:24. The Board should also reject this
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`argument because at least paragraphs 67-68 of Imai teach arranging five different
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`encoders in a system where two of the encoders vary in their data compression
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`rates and another two encoders vary in their data compression ratios.
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`Realtime also argues that the Petition does not adequately describe how to
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`combine the references, and does not adequately account for alleged disadvantages
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`IPR2018-01187 Reply
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`of making the combinations. But, Realtime cannot seriously contend that a
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`POSITA would not know how to select or implement video or image compressor
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`encoders that vary in their data compression rates or compression ratios because
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`the ’477 Patent is devoid of any explanation of how to implement any video or
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`image compression encoder, let alone how to vary their data compression rates or
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`compression ratios. See Ex. 1003 ¶¶77-80. Finally, there is no merit to Realtime’s
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`argument that a POSITA would not have been motivated to make the combinations
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`suggested in the Petition due to the existence of alleged disadvantages because
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`such an analysis is inconsistent with KSR and none of the cases cited by Realtime
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`undermine the Petition’s showing of motivations.
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`II. Limitation 1[b] is rendered obvious by Imai and Pauls.
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`Realtime reprises its argument from the POPR that the Petition does not
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`sufficiently demonstrate that a first asymmetric data compression encoder “is
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`configured to compress data…at a higher data compression rate” than a second
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`asymmetric data compression encoder because “configured to” requires showing
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`that the difference between the encoders’ data compression rates must arise by “an
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`intentional design choice” as opposed to arising by “a side effect of some other
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`design choice, or by chance.” Compare POR 17-19 with POPR 11-15 (emphasis
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`added). The Board should again reject Realtime’s arguments because (1) Imai and
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`Pauls teach systems designed to include multiple encoders having different data
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`compression rates; (2) the cases cited by Realtime do not support its proposed
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`“intentional design choice” requirement; and, in any event, (3) it would have been
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`obvious to a POSITA to intentionally choose a specific first encoder and a specific
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`second encoder that have different data compression rates.
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`A.
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`Imai and Pauls teach systems designed to include multiple
`encoders having different data compression rates.
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`Realtime cannot demand that the data compression rate limitations (1[b]) be
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`shown in haec verba because its expert admits that “data compression rate” is not a
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`commonly-used term (Ex. 1029 at 51:4-52:8), and he was unaware of any
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`commonly-used term that captures the ’477 Patent’s manner of measuring data
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`compression rate (id. at 62:6-63:25). Nevertheless, it would have been obvious to
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`a POSITA to build a system having at least two encoders where one encoder has a
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`faster data compression rate than the other.
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`Imai indisputably teaches a system having a plurality of asymmetric data
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`compression encoders. Pet. 16, 20-23; Ex. 1005 at [0067]-[0068]. Imai expressly
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`teaches that the encoders included in a system should vary in a number of ways,
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`such as compression ratio, execution speed, and suitability for compressing
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`particular data-types. Ex. 1005 at [0067]. With respect to execution speed, Imai
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`teaches that the plurality should include a computationally slower encoder and a
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`computationally faster encoder:
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`a method which requires a larger amount of computation for decoding
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`(such a method usually also requires a larger amount of computation
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`for coding), [and] a method which requires a not so large amount of
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`computation for decoding….
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`Id. at [0067]. Dr. Storer testified that this teaching of “coding methods that differ
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`in the amount of computation required…is directly related to execution speed or
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`data compression rate.” Ex. 1003 ¶136. ATRAC is given as an example of a faster
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`compression rate encoder: “[o]ne example of the coding method, which requires a
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`not so large amount of computation for decoding, is ATRAC.” Ex. 1005 at [0068];
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`Ex. 1003 ¶138. Realtime cannot dispute that this evidence teaches using encoders
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`with different execution speeds because Dr. Zeger admitted that the plain and
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`ordinary meaning of execution speed of a compression algorithm relates to
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`measuring the amount of computation: “Ultimately, it’s a measure of something,
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`whether it be data process—how much data is processed, how many seconds it
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`takes for something to happen, how many CPU cycles are used, something of that
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`nature.” Ex. 1029 at 65:5-66:22.
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`Further evidence that a POSITA would have found it obvious to implement
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`the data compression rate limitations is Imai’s suggestion of using several
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`ATRAC2 encoders that operate at different bit rates. Ex. 1005 at [0069]. Dr.
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`Storer provided several paragraphs of explanation for why a POSITA would have
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`understood that this teaches encoders with different data compression rates.
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`Ex. 1003 ¶¶139-42. Realtime’s response is that the specific numbers used to
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`quantify the ATRAC 2 encoders (e.g., 64, 32, or 24 kbps) are measurements of
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`output data rates and are not measurements of data compression rates. POR 28-30.
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`However, this argument misses the mark because a POSITA would have
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`understood Imai’s differing rates indicate that the different encoders are operating
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`at different data compression rates. For example, Dr. Storer explained how
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`modifying an encoder to operate at a different execution speed produces the
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`different output rates. Ex. 1003 ¶141. Moreover, Realtime’s expert admitted that
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`the general relationship between data compression rate (as used in the ’477 Patent)
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`and the output rate is that an increase in the data compression rate increases the
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`output rate of the encoder:
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`Q. So if you use a faster data compression rate, you achieve a higher
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`output rate?
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`A. Well, if you use a faster data compression rate — if you go back to
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`the definition of data compression rate as measuring the amount of
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`input data that can compress per unit of time at a given compression
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`ratio, so if you increase the data compression rate, you’re pulling in
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`more input data per unit time at a given compression ratio. So that
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`would — in general, that would increase the output rate of the
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`encoder, so you’d be having to send more data across the channel.
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`Ex. 1029 at 148:13-24. Realtime’s expert admitted that the reverse is true: a lower
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`data compression rate generally reduces the output bit rate of an encoder. Id. at
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`149:13-23. Given these general understandings of the relationship between data
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`compression rate and output bit rate, a POSITA would have understood that Imai’s
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`description of encoders having different bit rates suggests encoders having
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`different data compression rates.
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`A POSITA would have also found the data compression rate limitations
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`(1[b]) obvious in view of Pauls’ teachings. Similar to Imai, Pauls teaches a system
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`that has multiple, different encoders, which include H.263, MPEG, and MPEG2
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`encoders. Pet. 39; Ex. 1007 at [0010], FIG. 5. Dr. Storer explained that a POSITA
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`would have understood that the H.263, MPEG, and MPEG2 encoders have
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`different data compression rates based upon Pauls’ teaching that each of the
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`encoders “have associated different levels or percentages of compression,” Pauls’
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`teaching that each of the encoders have different bit rates, and a POSITA’s own
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`knowledge of the performance of these well-known standardized encoders.
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`Ex. 1003 ¶¶176-78.
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`Realtime states that this evidence does not teach the data compression rate
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`limitations based on its arguments that a compression ratio or an output bit rate
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`does not demonstrate different data compression rates. The Board should reject
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`Realtime’s argument for at least the reason that Dr. Zeger admitted that there is a
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`relationship between an encoder’s output bit rate and its data compression rate,
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`which supports Dr. Storer’s opinion. See Ex. 1029 at 148:13-24, 149:13-23. In
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`addition, the POR does not respond to Dr. Storer’s opinion that a POSITA would
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`have understood that the data compression rate limitations are present in light of a
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`POSITA’s own knowledge concerning the performance of the well-known H.263,
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`MPEG, and MPEG2 encoders. Ex. 1003 ¶¶176-78. The Board credited Dr.
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`Storer’s testimony “regarding the compression rates of the asymmetric algorithms
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`of MPEG, MPEG2, and H.263 and the impact of such rates” (ID 27-28), and the
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`POR provides no principled reason for the Board to change its finding.
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`B. Realtime’s argument that the term “configured to” requires
`showing an “intentional design choice” is not supported.
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`The Board should reject Realtime’s invitation to interpret the claim language
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`“configured to” to require a nebulous “intentional design choice.” Realtime’s
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`argument is particularly problematic because it does not provide any objective
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`standard by which to judge whether a particular design choice is within the scope
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`of the claims. For example, Realtime states that its interpretation of “configured
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`to” limitation “cannot be met by…a difference in compression rates arising as a
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`side effect of some other design choice.” POR 20.
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`Moreover, the cases cited by Realtime do not support its narrow
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`interpretation of “configured to.” In Aspex, the plaintiff challenged the district
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`court’s construction of the term “adapted to,” arguing that the court construed the
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`phrase “adapted to” too narrowly; [and] that phrase, should be interpreted to mean
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`“suitable for” rather than “made to.” The court disagreed and stated “in this case,
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`we conclude that the narrower meaning is correct,” explaining that while it could
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`have a broader meaning, “[t]he way the phrase is used in [the claim] supports the
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`districts court’s conclusion that a narrower definition, such as ‘configured to,’
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`applies here.” Aspex Eyewear, Inc. v. Marchon Eyewear, Inc., 672 F.3d 1335,
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`1349 (Fed. Cir. 2012). Aspex does not support the intent requirement suggested by
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`Realtime because the Federal Circuit was construing the term “adapted to” and not
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`“configured to.” Id. The Court also stated that its construction was specific to the
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`facts of the case and that patent. Id.
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`Realtime also advocates for a limitation absent from the claims – that a
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`system must switch from an encoder with a relatively slow compression rate to an
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`encoder having a faster rate of compression, otherwise “[t]he invention would not
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`function if the relationship were reversed.” POR 20-21. Instead, the claims
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`require selecting an encoder based upon other parameters other than compression
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`rate, such as the “throughput of a communications channel.” Ex. 1001, cls. 1, 20.
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`Realtime’s argument also fails as a matter of logic: If it were beneficial to only
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`switch from a slower compression rate to a faster compression rate, why would
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`anyone ever use the slower compression rate encoder?
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`C. The difference in the encoders’ data compression rates do not
`arise “by happenstance” nor “as a side effect.”
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`The Board should find that a POSITA would have found it obvious to
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`intentionally include a first asymmetric data encoder that has a faster data
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`compression rate than a second asymmetric data encoder because (1) Imai teaches
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`combining encoders in that way, (2) Imai teaches that it is beneficial to combine
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`encoders in that way, and (3) a POSITA would have understood Imai’s teaching to
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`use different encoders means that the encoders would have different data
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`compression rates.
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`1.
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`The prior art teaches intentionally using two encoders
`having different data compression rates.
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`A POSITA would have found it obvious to intentionally choose to include
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`two different encoders that have different data compression rates in a system built
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`according to the principles taught by the prior art. As explained above in Section
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`II.A, a POSITA would have understood that Imai’s description of an encoder that
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`uses a larger amount of computation and an encoder that uses “a not so large
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`amount” of computation teaches encoders that have different data compression
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`rates. Moreover, those same portions of Imai teach that including two encoders
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`having different data compression rates is an intentional design choice:
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`[T]he encoders 531 to 53N are prepared by using encoders which
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`perform encoding … with various coding methods, including a
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`method which provides a relatively large (high) bit rate of the
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`resulting coded data…, a method which can provides a relatively
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`small (low) bit rate of the resulting coded data…, a method which
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`requires a larger amount of computation for decoding (such a
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`method usually also requires a larger amount of computation for
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`coding), a method which requires a not so large amount of
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`computation for decoding, and a method particularly suitable for
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`coding a voice….
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`Ex. 1005 at [0067]. In addition, Section II.A above also explains how Imai’s
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`description of multiple ATRAC2 encoders with different bit rates teaches using
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`encoders with different data compression rates. Paragraph 69 describes that
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`arrangement, and it thus teaches a POSITA to build a system that has encoders that
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`differ in their data compression rates. Id. at [0069]. Finally, the Petition explains
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`that a POSITA would have also found it obvious to select among different
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`encoders having higher and lower data compression rates in order to better match
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`the incoming data stream to the throughput of the communication channel. Pet. 22.
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`The Board considered and credited this evidence in the Institution Decision
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`where it rejected the same argument that Realtime is now raising, finding that “the
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`Petition’s citations to these encoders and Imai’s teachings regarding the function of
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`encoders 531 to 53N that would render one of them a ‘first encoder’ and another
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`one a ‘second encoder’ [as] required by the claim.” ID 19. The Board also found
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`that “Imai specifically discloses that the encoders are constructed to encode the
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`audio signal with different coding methods from each other, thus, the different
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`rates of encoding would not be happenstance.” Id. The POR does not identify a
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`specific flaw in either finding, and the Board should again reject Realtime’s
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`arguments.
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`2.
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`The prior art teaches that choosing between encoders that
`have different data compression rates allows a system to
`better match an incoming data stream to the rate of a
`communications channel.
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`Choosing between encoders that have different data compression algorithms
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`is an intentional design choice that achieves the goal of better matching an
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`incoming data stream to the rate of the communications channel. The Petition
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`explains that a POSITA would have found it obvious to select among different
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`encoders having higher and lower data compression rates to better match the
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`incoming data stream to the throughput of the communication channel.” Pet. 22.
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`The Board credited that rationale at institution. ID 20 (“Petitioner’s rationale for
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`selecting different encoders in Imai with higher and lower data compression rates
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`to better match the transmission rate of the communication channel [is] adequate
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`for institution.”) (citation omitted).
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`In addition to the evidence submitted with the Petition, Dr. Storer explained
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`at his deposition how Imai works and why it teaches choosing between encoders
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`having different data compression rates in order to achieve real-time encoding of a
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`data, transmission to a client, and decoding at the client:
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`Imai actually describes an end-to-end system…[that] has to take into
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`consideration both speed and compression ratio and other factors in
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`order to actually ensure a real time system…. And so Imai actually
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`shows and describes having multiple encoders and choosing an
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`encoder in order to achieve this goal of throughput…[W]hat affects
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`throughput is both the speed of the encoder and the compression ratio
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`…you need to encode in such a way that you both have speed that’s
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`appropriate and a compression ratio that is appropriate.
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`See Ex. 2003 at 62:22-66:3.
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`Dr. Storer goes on to explain why Imai’s system needs encoders with
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`different data compression rates in order to achieve real-time encoding and
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`decoding:
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`Really fast doesn’t help you if the compression ratio is not enough
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`because it won’t go over the channel, and really good compression
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`doesn’t help you if you don’t do it fast enough…So Imai has
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`multiple…encoders that have different properties in terms of
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`speed and compression ratio and, of course, data type…Imai talks
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`specifically how a different encoder may do a better job with one
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`data type than the other…. It’s actually taking into
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`account…several considerations, including both speed and
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`compression ratio, because they are related…in fact, Imai even goes
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`further to talk about measuring the speed of the decoder because
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`that’s also necessary as part of the chain in order to guarantee the
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`end-to-end throughput.
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`Id. at 65:2-65:19.
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`Lastly, Realtime argues that Dr. Storer suggests lowering an encoder’s
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`compression speed to reduce an output bitrate to better match the needs of real-
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`time reproduction. POR 32-33. But, the opinions Realtime points to describe one
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`way of modifying the compression rate of an encoder, not Dr. Storer’s opinion for
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`how Imai teaches switching between encoders based upon the throughput of a
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`communications channel (see Ex. 1003 ¶154).
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`3.
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`A POSITA would have understood that different encoders
`(such as those described in Imai) would have different data
`compression rates.
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`Trying to distract the Board, Realtime suggests that the prior art only teaches
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`or suggests data compression encoders with different data compression rates by
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`“mere happenstance.” POR 22. Thus, Realtime portrays Imai as having
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`speculative teachings regarding the use of various encoders, leaving a reader to
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`guess how the system operates. Id. at 16 (“[Imai] discloses encoders by referring
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`to their encoding standards and output rates, and does not permit any finding than
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`any one of Imai’s encoders would be ‘configured’ to be faster than any other on a
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`systematic and predictable basis”); id. at 24 ( “the mere possibility that Imai might
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`sometimes operate [as recited in Claim 1]”) (emphasis in original).
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`But the Petition does not rely on the mere possibility that two of Imai’s
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`encoders will have different data compression rates to establish unpatentability.
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`Rather, the Petition observes that a POSITA would have understood that it is
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`exceedingly unlikely that any two different encoders have the same data
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`compression rate. Pet. 40. That fact is just one additional piece of evidence that a
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`POSITA would have understood from Imai’s description of different encoders that
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`vary in relative computational intensity and bit rate (explained above in §II.A)
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`teaches using encoders that have different data compression rates. Pet. 22.
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`Imai teaches a system specifically designed to have encoders with varying
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`characteristics and capabilities (including data compression rate), in order to allow
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`the system to select a particular encoder. See §II.A; Ex. 1003 ¶¶136, 142-43. Dr.
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`Storer explained that a POSITA would have understood that any two different
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`encoders in Imai would have different data compression rates because “it is only a
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`remote possibility (i.e., exceedingly unlikely) that two different implementations of
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`even the same compression algorithm would have the same execution speed or
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`data compression rate.” Id. at ¶137. He explained that it is well-known in
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`computer science that “the structure and ordering of computation steps of a
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`program” (such as an implementation of a compression algorithm) “has an impact
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`on speed.” Id. Thus, factors such as a particular programmer’s style affects
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`execution speed. Id. He further explains that the potential for creating a better
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`implementation of even a well-known algorithm explains why companies spend
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`money developing their own implementations. Id.
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`Dr. Zeger supported Dr. Storer’s opinion when he conceded that separately-
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`written encoders implementing the same compression algorithm are not certain to
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`have the same execution speed:
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`Q. If two persons of ordinary skill in the art wrote their own
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`implementations of a compression algorithm, will they have the same
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`IPR2018-01187 Reply
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`execution speed?
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`A. They could.
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`Q. Are they certain to have the same execution speed?
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`A. No.
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`Q. Why are they not certain to have the same execution speed?
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`A. You’re giving me a hypothetical without knowing the details, but,
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`you know, conceivably they have different processors. Depends how
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`you define “execution speed” also. They might have written a
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`program in a different way. There is many reasons.
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`Ex. 1029 at 68:24-69:12. He also admitted that a programmer may write an
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`implementation of a compression algorithm that is “very efficient software” while
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`another programmer may write an implementation that is inefficient. Id. at 69:13-
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`70:15. Dr. Zeger noted that there are a number of factors that impact the efficiency
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`of software code, such as the ability of the programmer, or different ways of
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`writing software code.
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`Q. Okay. How is it possible that a person of ordinary skill in the art
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`implementing a compression algorithm can write it more efficiently
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`versus less efficiently?
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`A. Well, a person could use good programming skills or poor
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`programming skills.
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`Id. at 70:16-21; see also id. at 72:7-24. More incredibly, he could not say whether
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`well-known compression algorithms are typically asymmetric, even though he
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`15
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`considers himself a person of “beyond ordinary” skill. Ex. 1028; Ex. 1029 at 37:5-
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`IPR2018-01187 Reply
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`38:25, 48:16-21.
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`Thus, contrary to Realtime’s suggestion that two of Imai’s different encoders
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`will have different data compression rates “by happenstance,” a POSITA would
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`have instead understood that two different encoders are extremely unlikely to have
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`the same data compression rate and therefore are most likely to have different data
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`compression rates.
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`III. A POSITA would have been motivated to combine Imai and Pauls.
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`Realtime concedes that “the motivation to combine inquiry is necessarily
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`fact-specific” and that a “simpler combination entails a lower hurdle than a more
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`complex one.” POR 2. Realtime proceeds to ignore both axioms and argues the
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`Petition does not establish an adequate motivation to combine based on strict legal
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`tests proposed by Realtime. The Board should reject Realtime’s arguments
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`because the Petition describes why a POSITA would be motivated to combine the
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`teachings of Imai and Pauls, and Realtime’s arguments are not supported by law.
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`Imai teaches a system with encoders 531 to 53N that can include asymmetric
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`encoders. Pet. 11. It includes a broad teaching of using various encoders in its
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`system to allow for selection between encoders with different characteristics and
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`functionality, and explains that while examples in the specification address audio
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`coding, its teachings are equally applicable to video. Ex. 1005 at [0172]. Pauls,
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`IPR2018-01187 Reply
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`another reference that like Imai teaches a system containing a multitude of
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`encoders that can be selected from, is used to provide specific examples of video
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`encoders that existed at the time that could be used with the teachings of Imai.
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`Pet. 13, 53. A POSITA would thus have been motivated to combine the systems of
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`Imai and Pauls to utilize the numerous video and image data compression encoders
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`of Pauls to enable video compression in Imai’s system. Id. at 53 (citing Ex. 1003
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`¶¶211-14).
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`The Petition’s stated motivation to combine supports a finding of
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`obviousness. “It is well-established that a determination of obviousness based on
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`teachings from multiple references does not require an actual, physical substitution
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`of elements.” In re Mouttet, 686 F.3d 1322, 1332 (Fed. Cir. 2012) (collecting
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`cases). “Rather, the test for obviousness is what the combined teachings of the
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`references would have suggested to those having ordinary skill in the art.” Id. at
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`1333. As the Petition shows, the combination of Imai’s and Pauls’ teachings
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`would have predictable results and a reasonable expectation of success given the
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`similarities in the systems, and given that audio and video compression
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`technologies were well-known and related at the time of the alleged invention.
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`Pet. 53 (citing Ex. 1003 at 213).
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`Contrary to Realtime’s assertions in its POR, none of the cited cases
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`undermine the Petition’s stated motivation to combine. First, Realtime errs in its
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`IPR2018-01187 Reply
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`reliance on Winner International Royalty Corp. v. Wang, 202 F.3d 1340 (Fed. Cir.
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`2000) to create a new requirement of showing that “the benefits justify the costs”
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`of making the combination. POR 54. But, Winner was decided under the TSM
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`test of yore, 202 F.3d at 1348 (looking for “[e]vidence of a suggestion, teaching, or
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`motivation to combine prior art references”) and its analysis pertains to an obsolete
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`approach to the obviousness inquiry. To the extent Winner imposes a benefits-cost
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`test, it is the same sort of “rigid rule” that improperly limits the question of
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`obviousness that the Supreme Court rejected in KSR. See KSR International Co. v.
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`Teleflex Inc., 550 U.S. 398, 419 (2007).
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`In any event, Realtime distorts the case. In Winner, while the court accepted
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`the trial court’s finding of a teaching away, it made sure to caution that “[t]he fact
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`that the motivating benefit comes at the expense of another benefit, however,
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`should not nullify its use as a basis to modify the disclosure of one reference with
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`the teachings of another.” 202 F.3d at 1349 n.8; see also Medichem, S.A. v.
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`Rolabo, S.L., 437 F.3d 1157, 1165, (Fed. Cir. 2006) (explaining Winner as
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`“disadvantages … do[] not necessarily obviate motivation to combine,” just as a
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`single reference teaching away does not mandate a finding of non-obviousness).
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`Thus, the Winner court’s call for “benefits, both lost and gained, should be
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`weighed against one another” is a caution to not ignore the benefits of making a
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`combination rather than dictating a rigid balancing test.
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`IPR2018-01187 Reply
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`Second, the Board’s decision in Apple, Inc. v. Realtime Data LLC does not
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`apply to the facts of this proceeding. In Apple, the patent owner provided evidence
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`that DRAM was more expensive than (or at least as expensive as) Flash memory,
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`which contradicted the petitioner’s rationale for combination—that DRAM would
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`be a more cost effective solution. IPR 2016-01737, Paper 57 at 58. Here,
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`Realtime does not introduce evidence contradicting the motivation to improve
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`compression quality, it merely alleges there would be “decreased speed” and
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`reduced “compatibility.” POR 57. In fact, Realtime does not even claim that the
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`costs outweigh the benefits. Instead, Realtime asserts in a conclusory manner that
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`it is “fatal” that the Petition did not “consider” whether the benefits of arithmetic
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`encoding “justify” the alleged costs based on an imaginative but incorrect legal
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`theory. Id.
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`Another false analogy is drawn to PersonalWeb Techs., LLC v. Apple, Inc.,
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`848 F.3d 987 (Fed. Cir. 2017), where the prior art taught disparate solutions
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`directed toward different problems. In PersonalWeb, one reference was directed to
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`a system for backing up or restoring data, while the other was directed to a system
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`for managing rights to access data. Id. at 989. Here, the combination simply
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`substitutes one element from a similar technology functioning in a similar manner
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`(Paul’s video encoders for the audio encoders in Imai). This is not the kind of
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`“complexity or obscurity … mak[ing] more detailed explanations necessary,” id. at
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