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`UNITED STATES PATENT AND TRADEMARK OFFICE
`_____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________
`
`INTUITIVE SURGICAL, INC.,
`Petitioner,
`
`v.
`
`ETHICON LLC,
`Patent Owner.
`_____________
`
`Case IPR2018-01247 (Patent 8,479,969 B2)
`Case IPR2018-01248 (Patent 8,479,969 B2)
`Case IPR2018-01254 (Patent 8,479,969 B2)
`____________
`
`Record of Oral Hearing
`Held: October 17, 2019
`_____________
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`
`
`
`Before JOSIAH C. COCKS, BENJAMIN D. M. WOOD, and
`MATTHEW S. MEYERS, Administrative Patent Judges.
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`Case IPR2018-01247 (Patent 8,479,969 B2)
`Case IPR2018-01248 (Patent 8,479,969 B2)
`Case IPR2018-01254 (Patent 8,479,969 B2)
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`STEVEN KATZ, ESQ.
`ROGER A. DENNING, ESQ.
`RYAN O'CONNOR, ESQ.
`Fish & Richardson P.C.
`601 Lexington Avenue, 52nd Floor
`New York, NY 10022-4611
`212-765-5070
`
`
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`ANISH DESAI, ESQ.
`CHRISTOPHER PEPE, ESQ.
`CHRISTOPHER MARANDO, ESQ.
`Weil, Gotshal & Manges LLP
`767 Fifth Avenue
`New York, NY 10153-0119
`212-310-8000
`
`
`
`
`The above-entitled matter came on for hearing on Thursday, October
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`17, 2019, commencing at 9:04 a.m., on the 9th Floor of USPTO Madison
`Building East, 600 Dulany Street, Alexandria, Virginia.
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`P R O C E E D I N G S
`- - - - -
` (Proceedings begin at 9:04 a.m.)
` JUDGE WOOD: Good morning.
` MR. DESAI: Good morning, Your Honor.
` MR. DENNING: Good morning.
` JUDGE WOOD: This is the oral argument for IPR2018-
`01247, IPR2018-01248, IPR2018-01254 and IPR2018-01703.
` Will counsel for Petitioner please introduce
`themselves?
` MR. DENNING: Good morning, Your Honors. My name is
`Roger Denning from Fish & Richardson on behalf of Petitioner,
`Intuitive Surgical. I have with me today my two partners,
`Steve Katz and Ryan O'Connor, who will also be arguing. And
`then I have Eming May (ph), the inhouse IP attorney from
`Intuitive Surgical.
` JUDGE WOOD: All right. Thank you, Mr. Denning.
` MR. DENNING: Thank you.
` JUDGE WOOD: Will counsel for Patent Owner please
`introduce themselves?
` MR. DESAI: Good morning, Your Honor. Anish Desai,
`from Weil Gotshal on behalf of Patent Owner. With me is Chris
`Pepe, who will be arguing as well, and Chris Marando.
` JUDGE WOOD: All right. Thank you, Mr. Desai.
` According to the hearing order, we will proceed
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`first with IPR2018-01247, -01248, and -01254, which all involve the
`same patent.
` Both sides will have 60 minutes. Petitioner
`proceeds first to discuss its case and may reserve rebuttal
`time to reply to Patent Owner's arguments. Patent Owner then
`proceeds with its case and may reserve rebuttal time to
`sur-reply to Petitioner's reply.
` Following completion of the oral argument as to
`those cases, we will proceed with IPR2018-01703, following a
`short break, if the parties request it.
` Before we begin, I believe Patent Owner has marked
`some demonstratives as confidential. I'd like to remind the
`parties that this is a public hearing. To the extent that
`confidential information is discussed, we will need counsel to
`be aware that it's public, and that any information that will
`be made public. And to the extent that counsel wishes to keep
`that information confidential, we will need to close the
`hearing for that information. So in other words, counsel
`needs to let the Panel know in advance of discussion of any
`confidential information.
` MR. DESAI: Your Honor, I believe we've discussed
`this before the hearing, and there's not going to be any
`issue. We're okay. Both sides are okay with proceeding on
`the public record.
` JUDGE WOOD: Okay. Thank you very much.
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` With that said, Mr. Denning, you may proceed when
`you're ready.
` MR. DENNING: Thank you, Your Honors.
` I'd like to -- I think we're going to go about 40
`minutes and reserve 20 minutes for our rebuttal, if that's
`okay with Your Honors. We are connecting to our presentation
`right now.
` So, Your Honors, I plan to address the first issue,
`maybe the threshold issue in the case, is as to whether the
`Certificate of Correction language, or the original language,
`or both should be subject to the Board's determination in this
`IPR. And then I'm going to turn it over to my colleagues, Mr.
`Katz and Mr. O'Connor, to argue the merits of each of those
`three IPRs, I think starting with Prisco, and then going to
`Giordano, and then going to Timm Anderson.
` JUDGE WOOD: Mr. Denning, before you proceed
`further, pardon the interruption, but I would like to remind
`counsel that we have a judge -- Judge Meyers is remotely
`connected to the hearing. So for the benefit of Judge Meyers
`and the record, please identify all slides by slide number as
`you proceed.
` JUDGE MEYERS: Thank you.
` JUDGE WOOD: And you may proceed.
` MR. DENNING: Thank you. We'll do so.
` Good morning, Judge Meyers.
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` JUDGE MEYERS: Good morning.
` MR. DENNING: So Ethicon is trying the Board from
`considering the validity of Claim 24 of the '969 Patent in
`either its corrected or its original form. On the one hand,
`Ethicon argues that the Board can't consider the corrected
`claim language of Claim 24 because a District Court Judge in
`an Interlocutory Order found that the PTO never should have
`issued the Certificate of Correction in the first place.
` JUDGE WOOD: Counsel, what was the basis for the
`District Circuit finding that?
` MR. DENNING: So --
` JUDGE WOOD: Why did they determine that?
` MR. DENNING: So a little bit of history in that
`case. Judge Stark in the District of Delaware, in a Markman
`claim construction proceeding, looked at the original claim
`language, construed the original claim language. Ethicon had
`asked him to construe the claim language consistent with the
`Certificate of Correction for the same reasons that they
`argued to the Patent Owner, and Judge Stark declined to do
`that, and said, No, I'm going to construe it as distal, not
`proximal. And distal means distal; it doesn't mean proximal.
`And then he entered the claim construction order.
` JUDGE MEYERS: And that was your position in the
`District Court at that time, correct?
` MR. DENNING: That's correct. And --
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` JUDGE MEYERS: And you, too, have flip-flopped also,
`correct?
` MR. DENNING: That's not true, Your Honor. We have
`always maintained that the Certificate of Correction never
`should have issued in the Patent Office, and we believe that
`to this day; the Certificate of Correction never should have
`issued.
` It did issue. It was in the claim language when we
`filed this IPR petition. So in our petitions, all three of
`them, we addressed both the corrected claim language and the
`original claim language because we knew that we didn't think
`the Certificate of Correction was appropriately entered. That
`said, it was in the record, and we felt we had to address it
`in the IPR petition, so we did. But we did it both ways.
` And our argument really is Claim 24 of the '969
`Patent is invalid either way. It doesn't matter whether you
`consider the corrected or the original.
` JUDGE MEYERS: Now, in your counterclaim, are you
`asserting that Claim 24 is indefinite?
` MR. DENNING: In the --
` JUDGE MEYERS: Without the Certificate of
`Correction?
` MR. DENNING: I would want to concur with my
`colleagues, but I don't believe so. I'm not counsel in the
`District Court case. That case has been stayed pending an ITC
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`investigation. So I'd want to confer on that, but I don't
`believe we're claiming it's indefinite in light of that.
` JUDGE MEYERS: Okay.
` MR. DENNING: I think we're taking the position that
`the original claim language as construed by Judge Stark to
`mean distal will apply in the District Court case.
` But for exactly the reason I said, the Certificate
`of Correction had issued about five months before Intuitive
`filed this IPR petition or these three IPR petitions, so,
`naturally, Intuitive felt we had to address the Certificate of
`Correction. In fact, it's still in the file history today.
` The District Court order, as I said, related only to
`claim construction. It's not a final judgment; it's an
`Interlocutory Order. And, in fact, Judge Stark's order on the
`Certificate of Correction was not necessary for his
`determination of the claim construction. He gave his claim
`construction order in December, I believe, of 2018, and then
`only in February of 2019 issued the order on the Certificate
`of Correction. It was not necessary -- his order on the
`Certificate of Correction was not necessary even to his claim
`construction order, which certainly is an Interlocutory Order,
`certainly not a final judgment.
` So on the one hand, Ethicon is trying to tell the
`Board, well, you shouldn't consider the corrected language.
`At the same time, Ethicon is telling the Board that you can't
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`consider the original claim language either because they say
`our petition focused too much on the corrected language and
`not enough on the original claim language, but, in fact, the
`petition argued both.
` This is a one-word change in the claim, distal to
`proximal, and in each of the petitions, you can see, we've
`spent one paragraph discussing how the prior art meets the
`distal limitation, and we spent one paragraph arguing how the
`prior art meets the proximal limitation, amongst the
`discussion of all the other limitations of Claim 24 of the
`'969 Patent. They were both treated side by side, one
`paragraph right after the other in the original petition. We
`focused on it in a fulsome manner in our reply brief, but
`building only on the arguments that were in the original
`petition. No new prior art, no new arguments; simply
`expanding on the arguments that we had made previously.
` Okay. So if we could go to Slide 3, Mr. O'Connor.
` So this is just a recap of what I said on the
`history relating to the Certificate of Correction. It took
`effect six months -- five months and some weeks after the IPR
`-- before the IPR petitions were filed, that's why we
`addressed the corrected language in the IPR petition, even
`though we believed at that time and put in a footnote in the
`petition here, and we're arguing in the District Court that we
`didn't think the certificate was properly granted. But we
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`still argued the language because that was in the file wrapper
`at the time, and it still is, by the way.
` Ethicon has filed nothing with the Patent Office to
`correct the Certificate of Correction and say it's not right.
`They've filed nothing with the PTAB, with the Board, asking
`you to invalidate the Certificate of Correction. It's still
`there. From a public notice perspective, anybody pulling up
`the '969 Patent, pulling up the file wrapper is going to see
`the Certificate of Correction in effect in the '969
`prosecution history. So that's why we think it's proper for
`the Board to consider the corrected language of the '969
`Patent.
` There's no collateral estoppel here in their
`sur-reply brief. Ethicon argued that collateral estoppel
`should prevent us from considering the corrected language of
`the claim. That's not true for two reasons.
` And Mr. O'Connor, if you can go to the next slide.
`One more after that, please.
` Collateral estoppel requires a valid and final
`judgment, Step 2 in this case, cited by Ethicon. It also
`requires that the determination be essential to the judgment.
`Here, there certainly was no final judgment in the District
`Court. At best, it's a claim construction order, an
`interlocutory claim construction order, not a final judgment.
`That case is stayed. It never really got beyond the claim
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`construction stage.
` And as I mentioned a moment ago, the Certificate of
`Correction Order is not essential to the judgment. It's not
`even essential to the claim construction order. Judge Stark
`entered that months before he entered his Order on the
`Certificate of Correction.
` Ethicon may argue that they waived their right to
`appeal Judge Stark's Order on the Certificate of Correction.
`That's of no moment here whatsoever. First of all, they wait
`until after Petitioner filed the reply brief to file a Notice
`of Waiver of Appeal in the District Court. But second of all,
`that's meaningless. It doesn't change the fact that Judge
`Stark's order is not a final judgment or that the order is --
`was not necessary for his claim construction order.
` Secondly, moving to the original claim language, the
`uncorrected claim language, Ethicon has filed a motion to
`strike and said that the reply brief went beyond the arguments
`made in the original petitions, and, therefore, the Board
`shouldn't consider the original claim language of the -- Claim
`24 of the '969 Patent either. In essence, they're trying to
`stop the Board from ever considering the validity of the
`original claim language of Claim 24. But, in fact, the IPR
`petition addressed both, as I said, side by side in the
`petitions, addressed both arguments under the distal and the
`proximal.
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` The reply brief simply expanded on those arguments,
`and I think the operative case here is the Ericsson v
`Intellectual Ventures case, Federal Circuit case. I can give
`you the cite. It's 901 F.3d 1374, and in that case, the
`Federal Circuit reversed a Board's decision not to consider
`arguments in the reply brief when the Federal Circuit found
`the Petitioner had raised the arguments in the petition and
`that there were significant intervening events that made those
`issues more relevant in the reply, and, therefore, justified
`the more attention that they got in the reply.
` I'd submit that certainly is the case here.
`Petitioner's response focused almost entirely on the original
`claim language because that came after Judge Stark's order.
`And so they focused entirely on -- almost entirely on the
`original claim language, so that naturally was the issue that
`we responded to in our reply brief.
` As the Federal Circuit found in the Ericsson case,
`Ericsson cites, No new evidence that merely expands on a
`previously argued rationale. And that's exactly what
`Intuitive Surgical did in our reply brief. So that should not
`be stricken and the Court -- the Board should be considering
`both the reply brief and the original petition.
` Unless Your Honors have any additional questions for
`me, I'm going to turn it over to Mr. Katz to address the
`Prisco petition. Thank you.
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` JUDGE WOOD: Thank you.
` MR. DENNING: Thank you.
` JUDGE MEYERS: Thank you.
` MR. KATZ: All right. So I'm just going to take a
`few minutes to address the Prisco petition.
` In this threshold matter, everything you just heard
`actually doesn't apply to Prisco. Patent Owner has not
`disputed that Prisco discloses the element to which the
`Certificate of Correction applies. So that only applies
`actually to Anderson, Timm, and Giordano.
` So Prisco, you know, we submit, is an anticipating
`reference, and Patent Owner focuses in on the wrist and says,
`first of all, that Prisco doesn't disclose the wrist, that
`Prisco says don't use the wrist, and that the combination of
`Prisco and the incorporated Cooper reference somehow only
`applies to one of Prisco's embodiments.
` Now, none of those arguments hold any water.
` So first of all, Prisco does disclose the wrist.
`There's no question about it. Figure 2B, for example, we show
`here on Slide 7, it shows the wrist. This is a straight
`cannula embodiment. But there's no statement in Prisco saying
`this is limited to that. And we point to Column 16 where it
`says you can include a moveable wrist mechanism. And it gives
`the reason why; because it allows an end effector orientation
`to be changed without changing shaft position. That statement
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`is a generic statement, and it applies to both Prisco
`embodiments, what we call the push-pull and the pull-pull
`embodiments.
` One way we know that actually is that the quote we
`have on the screen here about wrist mechanism is paragraph --
`Column 16, Line 38, starting Line 38. The previous paragraph
`is discussing Figure 7D and relates to the push-pull
`embodiment. And so this statement, far from being limited to
`the pull-pull embodiment, is following a description of the
`push-pull embodiment. So it is a generic statement. It
`applies to both.
` We also point out that, you know, the Patent
`disclosed both; you can have straight and flexible shafts.
`And the key here is that the wrist can be used with a flexible
`shaft. In fact, most of Prisco is about a flexible shaft.
` We turn to the next slide, Slide 8. You know,
`Patent Owner focuses on the non-wrist embodiment. Says, Oh,
`here's a non-wrist embodiment. It says, Don't use a wrist in
`the non-wrist embodiment. Well, sure, there are disclosures
`of embodiments that don't use a wrist. None of that is
`relevant here because Prisco, as shown in Slide 8 and as we
`point to in our briefs, clearly shows that a wrist is
`optional.
` And then Patent Owner focuses on the end is not
`shown language. Well, why is it not shown? Because it's
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`incorporated by Cooper. Prisco is saying, We're incorporating
`the wrist from Cooper; we don't need to repeat it all here,
`that's why we're not showing it. We've already incorporated
`it. It would be redundant to show all the information.
` So it's clearly optional and if it's optional, it's
`part of the Prisco disclosure.
` Go to Slide 9. So on Slide 9, this is now
`information from Cooper. And so, here, Patent Owner says,
`Well, wait a minute, Cooper needs to bend sharply because you
`need to have these five vertebrae. And the simple answer to
`that is they're focusing on one embodiment, and Cooper has
`many different embodiments. And so all of their arguments
`about this bend sharply are, again, irrelevant because they
`relate to one particular embodiment and not all of them.
` So let's see what Cooper says. As we say -- fill on
`the top here in Column 4, Line 62, it says, you know, The
`wrist member comprises at least three vertebrae. So at least
`three. You don't need more. You don't need five. Three is
`fine. We then cite Column 22, which shows that when you have
`a coupling between two disc segments, the rotation is
`typically 45 degrees. So, again, they focus on 180, but,
`here, it's 45 in one direction, then if you bend in the other,
`you add another 45, so maybe that's a total of 90 at most.
` And, finally, in Column 24, Line 40 to 47 here on
`Slide 9, you know, we cite that Cooper also says you can have
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`more than five segments. So the idea that Cooper is limited
`to a five-segment product that must rotate 180 degrees just
`isn't true.
` Now, in the Figure 19, what we show here, because
`this figure does show five segments, but we've highlighted in
`yellow three segments, and that will be consistent with the at
`least three vertebrae embodiment. And, here, you see, you can
`build a device that only can pivot 45 degrees; you know, not a
`sharp bend to 180. It's only 45 in pitch, and then the other
`two vertebrae would have been 45 in the yaw direction. So
`even though there's three vertebrae, it only bends 45 in any
`one direction.
` Okay. So Cooper, you know, clearly does not require
`this bend sharply, which they focus on, and, frankly, even if
`it did, there's really no evidence that the embodiments can't
`handle the sharp bend.
` So if you go to the next figure -- excuse me -- next
`slide, which is Slide 10, here, we show the pull-pull
`embodiment and a push-pull embodiment. And the reason why
`Figure 8A is demonstrating a shaft with a pull-pull embodiment
`is -- you'll see there's 802A and 802B. Those are tension
`rods that do connect to the gripper, and it says that those
`are used in a pull-pull embodiment, although the Figure 8A
`also has just generic information that would be applicable to
`both embodiments, right, which is the concept, that you have a
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`number of tubes, and you can put different things down the
`tubes. But in 8A, specifically, because they show the two
`cables, that's a pull-pull embodiment.
` Now, what's interesting is the push-pull embodiment.
`They focus on the stainless steel .032 inch OD, which stands
`for outer diameter. And they say, Oh, well, you know, that
`stainless steel rod can't bend. And, of course, we will
`demonstrate in a moment that it certainly can bend. They
`disclose it bending.
` But more importantly here is Patent Owner doesn't
`dispute that the pull-pull embodiment can go through the
`wrist. And what's interesting here is the pull-pull
`embodiment uses not one but two of these tube components that
`are each .032 inches and that bends in two directions. And so
`you've got the two tubes there that bend pitch to the side,
`but they also have to bend up and down. And so the idea that
`Prisco disclosing that these two tubes can bend up and down,
`even though they're one on top of each other, but yet a single
`rod that's .032 inches can't bend, just has no support.
` Prisco itself clearly is teaching that you have
`these bendable components. Now, are they stiff? Yes. And
`we'll get to that in a minute. They're stiff and bendable.
` Prisco at length talks about how it's very important
`to add stiffening members to make sure that the various
`control components don't kink, but that stiffening member
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`doesn't preclude using the wrist embodiments, which Prisco
`says are optional.
` Go to the next slide, Slide 11. There's a lot of
`text here, but I think what's important about here, which is
`Column 14, Lines 50 to 57 and also at Column 60, Lines 44 to
`53, is that Prisco here discloses the importance of
`stiffening, and this is in the context of the push-pull
`embodiment. So what we're showing here on Column 14, Line
`about 50, it says the instrument shaft remains flexible, this
`is in the push-pull embodiment, so it remains flexible, and
`that it does have a design stiffness. And it says
`specifically down below, what you see at Line 55, that they
`are talking about that you do want to have stiffening along
`the -- to isolate the push-pull drive lift. So there's no
`question, this is discussing the push-pull embodiment.
` If we go to Slide 11 -- excuse me -- Slide 12, which
`we now bring the text from 16 -- Column 16 forward, and here
`it says, you know, it should be understood that the principles
`describe EG ways of stiffening. So what's it talking about?
`Let's just be sure we knew what the principles are.
` These are the stiffening principles. How do we
`stiffen this device? And the stiffening principles apply both
`to the push-pull embodiment and the pull-pull. Right? It's
`not just one. These are both embodiments.
` And then it says specifically that it should also be
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`understood that these principles, again the stiffening
`principles, may be adapted to instrument aspects that include
`a movable wrist mechanism. And so even though you do need a
`quite a bit of stiffness according to Prisco, Prisco teaches
`stiffness doesn't mean you don't have a wrist. This line is
`confirming that even though you're adding stiffness purposely,
`you can still add the wrist. So the idea that the wrist can
`only work with one and not the other embodiment has no basis,
`and Prisco is clearly teaching otherwise.
` In fact, our expert says that you can make this
`combination of the wrist with both embodiments. Their expert
`says, No, it won't work. But here's the key. Our expert is
`relying on the teaching of Prisco. Right? Prisco is presumed
`enabling. Their claims call out, you know, the fact that you
`can have these embodiments. And so it's presumed enabling.
`And so their expert didn't come forth with any evidence. It's
`just this conclusory statement, Oh, it wouldn't work. Well,
`Prisco says it works, so they cannot rely on just a mere
`conclusory statement.
` So that's the push-pull embodiment. Right? I think
`we've clearly shown that it applies to both. And I think Your
`Honors, also, in the Institution decision also cited other
`passages where Prisco keeps saying wrist is optional, wrist is
`optional. I mean, there's a number of statements to that
`effect. So the idea that Prisco suggests that you only use a
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`wrist with one embodiment, there is no basis for that.
`Nowhere does Prisco say the wrist would only be used in one of
`these two type of embodiments.
` So there's also -- we have the pull-pull
`embodiments. So we go to Slide 13. This is an alternate read
`because they don't dispute that Cooper works with a pull-pull
`embodiment, and, here, the disputed language is operable
`communication. And the key here is that the pull-pull
`embodiment has a shaft gear, which rotates the shaft, and the
`shaft is connected to the jaws. And the claims say you need
`to have a gear that controls a selectively movable component.
` Well, the jaws are selectively movable components.
`Why are they selectively movable? Because they move, open and
`close relative to each other. That's what makes them
`selectively movable.
` And we say the roll gear does control the jaws
`because they control the roll movement of the jaws. Patent
`Owner's response is, But they don't open and close the jaws.
`And our answer to that is, the claim doesn't require that you
`control opening and closing the selectively movable component.
`It just says you have to control the selectively movable
`component, and one of the controls is absolutely to roll the
`jaws.
` And so, alternatively, we do say that in addition to
`the push-pull embodiment, which undeniably has a gear, the
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`pull-pull embodiment also has the required gear because of the
`roll feature that is applied to the jaws for jaws selectively
`movable.
` If Your Honors have no questions, we're going to
`turn to Giordano.
` JUDGE COCKS: Counsel, having just heard everything
`you said, what specifically is the limitation in the claim
`that you were directing us to?
` MR. KATZ: The limitation for the gear segment?
` JUDGE COCKS: Yes.
` MR. KATZ: It's Claim 24, and it says at least one
`gear driven portion that is an operable communication with
`said at least one selectively movable component portion of
`said end effector.
` So that's part of it. So it has to be an operable
`communication. And then later on, as -- there's a control
`element. So at the very end of the claim, it says that the
`one -- at least one gear driven portion to apply at least one
`controlled motion to said selectively movable component.
` And so what we're saying is the control motion being
`applied to the jaws is the roll motion of the jaws. It
`doesn't have to be an open and close control motion. Roll is
`a control motion of the jaws.
` JUDGE COCKS: Thank you.
` MR. KATZ: So with that, we're going to turn it over
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