`571-272-7822 Entered: May 11, 2020
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`_________________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`__________________________
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`APPLE, INC.,
`Petitioner,
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`v.
`UNILOC 2017 LLC,
`Patent Owner.
`__________________________
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`Case IRP2019-00251
`Patent 6,933,049 B2
`__________________________
`
`Record of Remote Oral Hearing
`Held Virtually: Thursday, April 23, 2020
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`BEFORE: SALLY C. MEDLEY, JEFFREY S. SMITH, and GARTH D.
`BAER, ADMINISTRATIVE PATENT JUDGES
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`Case IRP2019-00251
`Patent 6,933,049 B2
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`A P P E A R A N C E S
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`ON BEHALF OF PETITIONER APPLE, INC.:
`
`W. KARL RENNER, ESQUIRE
`JEREMY J. MONALDO, ESQUIRE
`FISH & RICHARDSON, P.C.
`1000 Maine Avenue SW
`Washington, D.C. 20024
`202.783.5070
`renner@fr.com
`monaldo@fr.com
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`
`ON BEHALF OF PATENT OWNER UNILOC 2017 LLC:
`
`
`BRETT MANGRUM, ESQUIRE
`ETHERIDGE LAW GROUP
`2600 East Southlake Boulevard
`Suite 120
`Southlake, Texas, 76092
`469.401.2659
`brett@etheridgelaw.com
`
`ALSO PRESENT:
`MATT CLEMENTS, APPLE
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`The above-entitled matter came on for hearing on Thursday, April 23,
`2020, commencing at 1:00 p.m. EST, by video/by telephone.
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`Case IRP2019-00251
`Patent 6,933,049 B2
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` P R O C E E D I N G S
` JUDGE BAER: All right. Good afternoon,
`everyone. I think we're ready to go. We have,
`this afternoon, our hearing for both
`IPR 2019-00251 and 2019-00510, between Petitioner,
`Apple, and Patent Owner, UNILOC. I'm Judge Baer,
`and Judges Medley and Smith are here as well. So
`the way this is going to work is we're going to
`start with the 2019-00251 case, which is the case
`addressing the '049 patent. We'll do that full
`hearing, and then what we'll do is we'll take a
`short break, and we'll then pick up, then, with
`the 2019-00510 case, which is patent -- the
`'079 patent.
` For the record, let's go ahead and get the
`party's appearances if we could. Who do we have
`for Petitioner Apple?
` MR. RENNER: Thank you, Your Honor. This
`is Karl Renner, and I'm joined by Jeremy Monaldo,
`as well as Matt Clements, from Apple.
` JUDGE BAER: Great. And, Mr. Renner, will
`you be presenting argument in both cases?
` MR. RENNER: Your Honor, Jeremy Monaldo
`and I will be dividing the responsibilities and
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`the presentations.
` JUDGE BAER: So will you be splitting the
`cases, one doing one case and the other doing the
`other; is that correct?
` MR. RENNER: He and I will both be
`splitting the case in the first instance, the 251
`proceeding; and the second proceeding, it will
`likely be Mr. Monaldo only.
` JUDGE BAER: Okay. Great.
` And who do we have for Patent
`Owner, Uniloc?
` MR. MANGRUM: Good afternoon, Your Honor.
`This is Brett Mangrum, counsel for Patent Owner.
`I will be speaking in both cases, and I believe I
`am the only person on the line for Patent Owner
`today.
` JUDGE BAER: Great. Thank you,
`Mr. Mangrum. Welcome to you all. It's good to
`have you here. We certainly appreciate everybody
`making the effort to be here and to accommodate
`these sort of unusual circumstances and doing this
`video conference. We appreciate everybody being
`flexible with that.
` So we set forth the procedure in our trial
`order, but just a quick reminder: The parties
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`will have 45 minutes of total time to present
`their argument in each proceeding. So 45 minutes
`total time for the 251 case, and 45 minutes of
`total time for the 510 case. We do have the full
`record and the slides that you-all sent to us, and
`we will be following along.
` It will be helpful, just to keep things
`clear, if you would, please, to reference where
`you are, reference the exhibit and the page
`number, or reference the slide number. That will
`also help keep our transcript clear.
` Two things that will help, since we're
`doing this via video, the first is, if you're not
`speaking, if you would please mute your line,
`which I think everybody is already doing. Also if
`it's been a while since you've been speaking, if
`you would identify yourself so we make sure our
`court reporter knows who is speaking. I think
`that's about it. Let's make sure we're ready to
`go.
` Does counsel for Petitioner Apple have any
`questions?
` MR. RENNER: No, Your Honor. We'll just
`mention we're planning to reserve 15 minutes of
`the time for our redirect, though.
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` JUDGE BAER: Understood. We'll get that.
` And, Mr. Mangrum, any questions on behalf
`of the patent owner?
` MR. MANGRUM: No. Just a comment. I
`might be testing the limits of my headset. At
`some point, I might need to switch to the audio of
`my phone, and I've used that before, but it just
`doesn't come in as clear. But we'll see how far I
`can get.
` JUDGE BAER: Understood. We can hear you
`clearly at this point. I don't know how well you
`hear us, but we hear you well. So all right, with
`that, we're ready to begin.
` Petitioner, you'll go first; and, again,
`we'll start with the 251 case. And you said you
`wanted to reserve 15 minutes, correct?
` MR. RENNER: Yes, Your Honor. Thank you.
` JUDGE BAER: And do you want any sort of
`warning, time warning?
` MR. RENNER: No, I think we're fine.
`Thank you for that, though.
` JUDGE BAER: Great. We'll put 30 minutes
`on the clock, and you may begin when you're ready.
` MR. RENNER: All right. As I mentioned,
`Karl Renner for the petitioner. This afternoon
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`I'll address a few legal issues before asking my
`colleague, Jeremy Monaldo, to speak to a
`substantive claim construction issue and prior art
`sufficiency. Specifically, I plan to speak to
`three legal issues, the first of which relates
`to Uniloc's challenge with regard to Petitioner's
`demonstrated public availability of the applied
`references. The first is the IrOBEX reference,
`the Exhibit 1006 reference, and that was applied
`in Ground 3. It was applied alone, just the
`obviousness of Claims 11 and 12.
` The second piece of this is the public
`availability issue that relates to the Bluetooth
`BT Core document that's Exhibit 1014, and that was
`applied in combination, as we saw, with Larsson;
`and Ground 2 is where the BT Core showed up. And
`there -- it was put in for purposes of
`demonstrating some of the technological features
`that are in Larsson and complimenting those in
`greater detail, the purposes for which were
`authored. Those were never challenged in Larsson,
`so we're going to focus our attention here in the
`hearing, and we expect to focus on the IrOBEX
`documents and its public availability, given the
`implication. Clearly, we'll address any questions
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`we have otherwise, but that was our intention.
` If we could have slide 56 in the
`presentation materials that were put forward,
`there you can find the first slide that deals with
`the public accessibility issue, and with respect
`to each reference in question, here we inventory
`the significant amount of evidence that was
`brought to bear in the public accessibility.
`Here, in slide 56, it shows that evidence was
`brought to bear with regard to the IrOBEX document
`and, as mentioned, there were the challenges with
`regard to BT Core. Those are set forth and
`inventoried in slide 64.
` So here's slide 56. It shows that there
`is a variety of pieces of evidence that were set
`forward, and we're going to step through those to
`make sure we've got a firm understanding together
`of what has been put here forward.
` In slide 56, you can see, first, there are
`three declarations listed that were devoted to
`public availability and accessibility. The first
`was given with the petition. It's Exhibit 1008,
`and it's a declaration by Charles Knutson. He was
`a test and operability chair of an organization
`called "IrDA," and that's the Infrared Data
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`Association, and that was filed, again, with the
`petition, and demonstrates that he accessed the
`document in a variety of ways, and he also
`testified to the distribution of the document with
`the e-mail blast by the organization, as well as
`referencing third-party documents that timely
`reference this document, the documents that,
`themselves, were prior art and would demonstrate
`through their reference that this was a timely and
`publicly accessible document.
` There were questions raised from the
`language that was put forth in his declaration,
`and so two pages of his supplemental declaration
`filed with the Petitioner's reply, Mr. Knutson
`actually put forward clarifications on his
`statements, just to make very clear in the record
`what he had testified to.
` And we'll get into that in a little more
`detail, but that is the second declaration that's
`listed, the Apple 1035 document, and it's a very
`short submission there that relates to this. But
`he's clarifying -- I'll mention he's clarifying
`when he said he referenced a document, the
`document after March 18, '99, it's in conjunction
`with the statement where he made clear that the
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`document was the prior art.
` So he clarifies in his supplemental
`declaration that what he was saying there is,
`before June 1st -- after March 18th, before
`June 1st, he had specifically accessed the
`document in question, the IrOBEX document, giving
`forth the other part of this declaration.
` The third declaration we put in is also
`submitted with the petitioner's reply because,
`again, there were questions raised as to the
`accessibility under Hulu. We have the ability to
`confront those with evidenced argument. This was
`Lawrence Faulkner, he's an executive director of
`that same organization, IrDA, and he was
`personally involved in the release of the IrOBEX
`document. He also noted that he was familiar with
`the procedures of that organization, as was
`Mr. Knutson, and could also speak to the
`distribution by the e-mail blast, as well as other
`forms of availability that existed.
` Speaking of which, in the same document,
`the same slide, you can see the evidence was
`provided to corroborate each witness. There's
`third-party citation here to a variety of
`different third-party documents, including patents
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`that reference the documents in question, the
`IrOBEX in particular here, and publications as
`well.
` If we could turn to slide 58, we thought
`we would show a few clips here from the IrDA
`website that were spoken to in the original
`declaration that Knutson put forward. He
`demonstrates the publication no later than
`October 11, '99, that's referenced on the website,
`that he remembers and he testified to that
`personal recollection of his website, and the
`distribution e-mail reflectors is also
`demonstrated here.
` And, finally, a reference to IrOBEX 1.2,
`and when you look into the documentation, you'll
`see that is the document we're talking about with
`Exhibit 1006.
` JUDGE BAER: Mr. Renner, you said this is
`information that came in in the reply, and just to
`be clear, this is information that -- the evidence
`itself was evidence that you submitted in your
`motion for supplemental information, right, under
`37 CFR 42.123(a). It's just that you referenced it
`in your reply, correct?
` MR. RENNER: Not quite. Let me step
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`through that a little more clearly. My apologies
`for not being more clear in the first instance.
` Mr. Knutson put forward a very complete
`declaration in the petition itself, with the
`petition itself, alongside it. He put two
`declarations forth, the second of which is the one
`that spoke to the public accessibility to the
`documents, and it's quite comprehensive.
` The only thing that he complimented that,
`within the reply, was just two more pages of
`another declaration put forward that addressed
`technical features. So what we have is, his
`testimony stands as it was originally put forward
`with the petition itself, and he clarifies just a
`couple of things. And the clarification made was
`in his original writing. He'd mentioned that he
`referenced or had accessed the document after
`March 18, 1999, and we saw Uniloc take issue with
`that. They said, Well, we don't know when after.
`It could have been 10 years after. You know,
`"after" isn't good enough.
` He had intended that statement to be
`combined with an earlier paragraph, one paragraph
`earlier, where he said, This document is timely
`and accessible in the public domain in a timely
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`fashion. So in his supplemental declaration, he
`clarified that his access that he's speaking to
`wasn't only after March 18th, it was before
`July 11th, 2000. So the supplemental declaration
`on this point is quite narrow.
` As to the supplemental information that
`you reference, and you're correct, there's a
`motion for that pending, that goes to the
`Bluetooth core. And there's, in the Bluetooth
`core -- and I don't want to get too deep into that
`necessarily -- but in the Bluetooth core, there
`were web pages again that were believed to be
`accessible and were put forward with the petition
`and declaration evidence, and it ends up they
`disappeared in the interim. So we wanted to make
`sure the record is complete, and in the spirit of
`getting it to be complete, we put forward
`additional information. We noted that and we put
`it in the supplemental information, and then we
`went ahead and cited it as exhibits to our reply.
`So that relates to the Bluetooth core, primarily.
` JUDGE BAER: So again, the IrOBEX
`information was not -- and in particular those
`references that cite -- the references that
`predate the critical date, that cite IrOBEX, were
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`not submitted with the motion for additional
`evidence, they were just submitted with the reply;
`is that correct?
` MR. RENNER: That is right, Your Honor.
`There are patents and other documents that
`references our original declaration that came in
`in a third party. Correct.
` JUDGE BAER: Okay. Thank you.
` MR. RENNER: Sure.
` If we move to slide 59, we'll note that
`the IrDA, as the website goes, and part of his
`evidence was his familiarity, of course, as an
`officer in the organ- -- or chair in the
`organization, that he interfaced with the
`documents that the organization handled, including
`the IrOBEX 1.2 spec. And here you can see they
`took the web page from the IrDA at the time, and
`shows the 150-member consortium he speaks to. It
`shows he was, indeed, a chair, it shows that
`Faulkner -- from whom we put in a second
`declaration, a new declaration with the reply --
`was the executive director, and it shows a third
`interface, which we think is quite important
`because it was able to be used, according to them,
`to easily access documents like this one.
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` So it is there to demonstrate that this is
`a -- the organization is public. It's widely
`known, it's -- these documents are available to
`the public, and there's even search interfaces, so
`they're not hidden in a way, we've seen some of
`the cases give concern to documents in the past.
` Slide 60 is where you'll encounter two of
`the third-party documents that you mentioned, two
`patents here, one from October 22nd, 1999, and the
`other May 10, 2000, each referencing the IrOBEX
`document as well. So there are patents here that
`are shown by 60.
` Slide 61 shows three more patents, and
`they were referenced in the sur-reply, and these
`ones show reference to the IrDA website, from with
`the IrOBEX document could be searched for and
`found and otherwise was posted. Again, just
`trying to be complete here in giving you a full
`picture.
` Slide 62, we've got yet another
`third-party document. Not a patent at this time,
`but it was a paper. We thought this was
`interesting because not only is it February 2000,
`and therefore timely in its reference to the
`document, but also it explains that the IrOBEX
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`protocol was used in third generation smartphones.
`This was prolific technology. This was not
`technology that was in the back shelf somewhere in
`a hidden library or something. It's not obscure
`at all. It's something that's well-known to the
`parties, and you can see that through the
`third-party reference here.
` Slide 63, we see the BT Core references
`this document. So just, you know, this is over
`and over again we're going through, but I just
`want to give you a flavor for what the record
`shows us here. And on the other side, you know,
`there's a balancing act, of course, to be done.
`There's been no evidence submitted by Uniloc that
`suggests that there is a lack of public
`accessibility.
` There's been no depositions with any of
`the parties that offered testimony here to call
`into question the veracity of what they said;
`rather, there's corroboration of the documentation
`that corroborates the affidavits.
` JUDGE BAER: Mr. Renner, you're free,
`obviously, to spend your time how you like. I
`don't understand Patent Owner to be contesting
`that the information -- with the later added
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`information that you've got enough there. What I
`understand Patent Owner to be saying, particularly
`in their sur-reply, they're saying that's
`too late, and that information, in particular with
`IrOBEX, shouldn't be considered. So maybe you
`could address why we should allow that additional
`evidence, because I think that's, maybe, the
`fundamental disagreement here.
` MR. RENNER: I agree, that's part of it.
` I think that, frankly, even without -- I
`want to be very clear, even without the
`supplement, there's a variety of pieces of
`information that were put forward in the petition,
`with the petition, that we believe are sufficient
`to show public accessibility. So I want to be
`clear on that.
` They're focused on one specific statement,
`one of those proofs, and that was the statement
`that Knutson made that he had accessed that
`document after May 18th. But he also testified,
`keep in mind, to the notion of e-mail blasts that
`went out to public members, the public nature of
`the organization itself that he shared to, the
`third-party documents referenced, none of those
`are at issue when we talk about what came in with
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`the supplemental -- or the information in the
`reply. So again, in being complete as to the
`statement, that was them accessing after
`March 18th, there we did offer testimony and we
`believe that testimony to be perfectly aligned
`with the Hulu case, which was cited by the patent
`owner, actually.
` In Hulu, what we had was the copyright
`that was offered, and it was in context and
`further information came into the record, and the
`question was whether or not that further
`information was untimely.
` In Hulu they -- there was a clear
`articulation that we have to be very careful with
`the evidence we allow in after the petition's
`filing, for a variety of reasons, but, at the same
`time, Hulu tells us there are instances where it's
`perfectly acceptable, and, in fact, very
`appropriate to put in evidence at that stage of
`the proceeding. One of those instances, the
`second enumerated one in slide 69 of our deck,
`should have information on them. It's just a
`quote from Hulu, but the second articulated factor
`speaks to replying to arguments that were put
`forward in the patent owner reply.
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` And that's exactly what we have here. For
`the first time we have an argument comes up in the
`patent owner reply, and as soon as that argument
`is surfaced and that language is called into
`question, a very, very specific offering of
`evidence is given in reply. And we believe that
`to be perfectly congruent with Hulu, and not some
`sort of a, you know, improper evidence reach out.
` So any questions on that? Because I can
`certainly talk more about it; otherwise, I would
`move to the second issue that I was planning to
`address in terms of the future, and it relates to
`slide 43.
` When we move to slide 43, we see that we
`switch from the patent owner's sur-reply, and
`we've noted in the March 3rd e-mail to Your Honors
`that we believe that these contain improper
`evidence at this stage. The rules that were put
`forth in the [indistinguishable] trial practice
`guidelines in 2019, page 73, tells us that a
`sur-reply, and I quote, "Sur-reply may not be
`accompanied by new evidence other than the
`deposition transcript and the cross-examination of
`any reply witness." And these were neither of
`those two things, and yet they are, for the first
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`time referenced, quoted as if they were evidence.
`Either -- they're not evidence and argument, but
`they're quoted as if they are evidence, and we
`believe it to be improper.
` Your Honors are in full command of this
`issue, you wrote that, in paper 16, you did give
`it consideration, so we don't want to belabor this
`point at all. But you did ask whether -- or you
`offered for the parties to talk about it, and I
`would offer just one thing, and that is that, the
`rule being an unambiguous one, and that this
`being, a really clear violation of that rule, we
`do think it would send the wrong message to the
`community to allow that evidence.
` And we're not asking for a total striking
`of the entire sur-reply, I think that would be
`overdone, frankly; but we want to make the rule
`have its effect. And the rule's effect would be
`that you can't offer evidence at that time. But
`again, I don't want to belabor the point, but I
`want to make sure it was understood, you know,
`where we were coming from in the e-mail.
` The last and third point as to questions
`on that relates to slide 11, and this is just
`where I've prepared to ask Jeremy to come on and
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`talk about the plain construction themselves and
`prior art. I wanted to make the point and just
`remind us, because so many of our cases are under
`the plain construction standard, and this was not
`one of them.
` This case is governed by BRI, so one of
`the old guard, if you will. And that matters
`here. It matters -- I think either way you would
`get to where we're going to be, but certainly,
`under BRI, what we'll see is that the record has
`Patent Owner taking position A prior to
`institution, and then after institution, not only
`changing that position, but actually augmenting
`the claims with superfluous language that's not
`apparent and not in the claims themselves. And we
`think under BRI that's really quite clearly
`outside the scope of the claim.
` So I just want to make sure we understood
`the framework here being a BRI framework, and with
`that, I would have some questions and turn it over
`to my colleague. But are there any questions
`about the public accessibility or the other points
`that I addressed?
` JUDGE BAER: Not at this point.
` Any from my colleagues?
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` (No response.)
` JUDGE BAER: Great. I think we're ready
`to move on.
` MR. RENNER: Thanks so much.
` Jeremy?
` MR. MONALDO: Thank you, Karl.
` Thank you, Your Honors, for taking the
`time today. So I'm going to start our
`presentation on side 11. As Karl mentioned, claim
`construction is a major issue in this proceeding,
`and there are three terms that are up for
`construction: The term, "additional data field";
`the term, "broadcasting"; and the term, "inquiry
`message."
` As Karl mentioned, and as we'll discuss,
`the claim construction standard is actually very
`important in this case as it is useful to consider
`whether constructions that have been previously
`advanced by the patent owner and previously
`adopted by the PTAB, whether those constructions
`are actually reasonable and encompassed within the
`broadest reasonable interpretation of these terms.
` So moving to the first term, "additional
`data field," I'll transition through slide 12, and
`moving to slide 13. On slide 13 you can see the
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`construction of "additional data field" that have
`been offered in this proceeding. First, in the
`preliminary response for institution, Uniloc asked
`for construction of, quote, "an extra data field
`appended to an inquiry message."
` This construction was not adopted in the
`institution decision as the term "additional data
`field" was found to already require the
`clarifications offered in the preliminary
`response.
` Now, because that construction was not
`adopted and not found to distinguish the prior
`art, Uniloc can change course in the Patent Owner
`response and now requests that a location
`requirement "to the end" be added and read into
`the term "additional data field."
` There's simply no basis under the broadest
`reasonable interpretation standard to rewrite the
`claim in this fashion. The claim language does
`not use the words, "to the end of," and Uniloc's
`first construction made on record does not use
`those words either. Because Uniloc has not shown
`that its first construction was unreasonable, the
`inquiry should end and Uniloc's first construction
`should be deemed part of and encompassed in the
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`broadest reasonable interpretation of the term,
`"additional data field." And the record confirmed
`that addition of the location requirement, "to the
`end," would simply be improper.
` Slide 15 of our demonstratives shows you
`the disclosure from the '049 patent. This
`disclosure confirms that addition at the end of an
`inquiry message is just an example. Nothing
`mandates that the additional data field come at
`the end of the inquiry message. There's no
`explicit disclaimer, no claim disavowal in the 049
`patent.
` Slide 16 shows you dictionary evidence,
`and Uniloc's own infringement contentions, neither
`which limit the term "additional data field" to
`the end on the inquiry message.
` And slide 17 shows you a claim
`differentiation argument that we put forward in
`the petitioner reply. You see here, claim 3
`clearly adds the very feature that Uniloc is
`contesting to import into the term "additional
`data field." If that were done, claim 3 would be
`rendered redundant and superfluous, and the law
`tells us that's just not proper.
` So for these reasons, there's simply no
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`basis under the broadest reasonable interpretation
`standard to limit the term, "additional data
`field," to require a location requirement for
`where that message or data field is added, meaning
`[indistinguishable].
` So unless there's any questions on
`additional data fields, I'd like to transition to
`broadcasting.
` JUDGE BAER: Just one question for you,
`Mr. Monaldo. The piggybacking issue, is it your
`contention that piggybacking does -- okay, so what
`I don't -- let me start over.
` What I don't hear you saying, and I'm a
`little bit surprised I don't hear you saying, is
`their patent says "piggybacking," our prior art
`says "piggybacking." Whatever it is, if it's at
`the end, fine, we don't care. Whatever it is, if
`it's at the end, their piggybacking has to be at
`the end, and our prior art says piggybacking, so
`it's got to be at the end.
` So is it your contention that piggybacking
`does not mean appended to the end, or is it your
`contention that, fine, piggybacking can mean
`appended to the end, but our prior art shows
`piggybacking as well.
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` Is my question clear?
` MR. MONALDO: Yes, Your Honor. It is very
`clear, and you actually jumped ahead to my
`presentation for me. That's a point we certainly
`agree with, and we certainly -- or fully intend to
`argue that the prior art and the patent uses the
`same term. They use the same thing. And we have
`the same disclosure.
` And you can see that from slide 41 of our
`demonstrative, you can see in the lower right
`corner, the '049, "possible to piggyback the
`broadcast channel." There's the same word,
`"piggyback the broadcast message" is used in
`Larsson.
` There's really no issue here as the claim
`construction. And we certainly agree that that
`disclosure would meet the term, even
`under Uniloc's construction. We don't think the
`construction is proper, one; and two, we still
`think it's met because our art discloses in the
`same way as the patent, as you mentioned,
`"piggybacking." So we 100 percent agree, and it's
`our intent to make that arrangement.
` Is that clear?
` JUDGE BAER: It is. Thank you.
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` MR. MONALDO: All right. Great.
` So turning back to broadcasting, which is
`slide 20 in our demonstrative, you can see on
`slide 20 is the constructions for broadcasting
`that have been offered. Again, pre-institution,
`Uniloc asked for construction, one message that is
`distributed to all stations, and this construction
`was adopted in an institution decision.
` And what happened was that that first
`construction was deemed too broad to distinguish
`the prior art, Uniloc has changed course again and
`offered a different construction o