throbber
IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`__________________
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`__________________
`
`
`ERICSSON INC.
`(“Ericsson”),
`
`Petitioner,
`
`v.
`
`UNILOC 2017 LLC
`(“Uniloc”),
`
`Patent Owner.
`
`__________________
`
`
`Case No. IPR2020-00376
`U.S. Patent No. 7,016,676
`
`__________________
`
`
`REPLY TO PATENT OWNER OPPOSITION
`TO PETITIONER’S SUPPLEMENTAL MOTION FOR JOINDER
`
`
`
`
`
`
`
`
`

`

`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`
`
`
`As clarified in Ericsson’s Supplemental Motion for Joinder, Ericsson intends
`
`to participate in a classic “understudy” role in the joined proceeding. Ericsson
`
`stipulated to all the conditions specified by the Board in its definition of
`
`“remain[ing] completely inactive.” Order (Paper 8) at 3. In short, so long as
`
`Microsoft remains a party, Microsoft controls all aspects of the proceeding,
`
`including substantive filings, discovery, deposition, and oral hearing.
`
`I. None of Uniloc’s Concerns Justify Denying Joinder.
`
`Pursuant to the Board’s Order (Paper 8), Ericsson endeavored in good faith
`
`to reach an agreement with Uniloc regarding the conditions of joinder. Consistent
`
`with what Ericsson acknowledged in its Supplemental Motion for Joinder, Uniloc
`
`expresses two concerns regarding joinder – (1) briefing during any Federal Circuit
`
`appeal; and (2) whether Ericsson will “participate” in the drafting of any of the IPR
`
`filings controlled by Microsoft. Neither of these concerns justify denying joinder.
`
`First, with respect to potential Federal Circuit review, Uniloc agrees
`
`Ericsson can file a notice of appeal but then suggests that Ericsson be prohibited
`
`from filing an appeal brief separate from Microsoft. Opp’n at 3-4. Uniloc’s focus
`
`on the procedure of a different tribunal is not only irrelevant to the Board’s joinder
`
`analysis, but, more importantly, its request that Ericsson should stipulate to no
`
`appeal briefing is also unreasonable. It is unreasonable because Ericsson is not
`
`aware of any mechanism in the Federal Circuit that would allow a party to take a
`
`1
`
`
`

`

`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`similar “understudy” role in any appeal as a matter of right, and Uniloc has not
`
`cited to any.
`
`For Ericsson to participate in a Federal Circuit appeal, Ericsson needs to file
`
`or join briefing. For example, if Microsoft and Ericsson were to file notices of
`
`appeal, and Microsoft subsequently settled, the appeal would likely be dismissed if
`
`Ericsson had not filed or joined briefing. See Fed. Cir. R. 31(d). Likewise, if
`
`Uniloc were to appeal, and Microsoft subsequently settled, Ericsson could not be
`
`heard at oral argument without court permission if Ericsson had not filed or joined
`
`briefing. See Fed. R. App. P. 31(c). And, while it is typical for the court to
`
`consolidate appeals from the same IPR (which Ericsson would welcome), such
`
`consolidation is ultimately within the Federal Circuit’s discretion and beyond
`
`Ericsson’s control. In sum, if Ericsson did not file an appeal brief during an appeal,
`
`Ericsson could lose the right to maintain an appeal.1
`
`Second, Uniloc also requests that, in addition to the conditions listed in
`
`Ericsson’s Supplemental Motion for Joinder, that Ericsson stipulate to “not
`
`actively participate in the drafting of filings.” Opp’n at 3. During negotiation
`
`
`1 Ericsson cannot speak to what another party meant by that party’s statement that
`
`it would not “seek” to file briefing. See Opp’n at 4. Regardless, it is of no matter,
`
`given that Uniloc found even that statement unsatisfactory. Id. at 4 n.1.
`
`2
`
`
`

`

`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`regarding this condition, it was unclear whether Uniloc was attempting to prohibit
`
`communication between the parties. Uniloc’s Opposition reflects its ambiguity
`
`regarding communication between parties – “Patent Owner never characterized the
`
`proposed stipulation as somehow precluding any communication between Ericsson
`
`and Microsoft for any reason.” Oppn’ at 3 (emphasis in original). As set forth in
`
`the understudy conditions, Microsoft controls the preparation of all filings and
`
`Ericsson reserves no right to participate in any way, except should Microsoft
`
`withdraw as a party. To date, Microsoft has not expressed any desire for input
`
`from Ericsson. Therefore, unless Microsoft withdraws as a party or communicates
`
`with Ericsson as Patent Owner acknowledges is permitted, Ericsson will not
`
`actively participate in the drafting of any filings.
`
`Uniloc raises a speculative argument regarding whether Microsoft agrees to
`
`a “risk of estoppel” that would “potentially” attach under Ericsson’s “apparent”
`
`interpretation of the conditions of joinder. Opp’n at 5. Again, the clarifications of
`
`Ericsson’s understudy role in the Supplemental Motion for Joinder make it clear
`
`that Microsoft controls all aspects of the IPR proceeding (substantive briefing,
`
`discovery, deposition, and oral hearing) so long as Microsoft remains a party2.
`
`
`2 Uniloc also “objects to” Ericsson “seeking to skirt” page limit requirements.
`
`Opp’n at 8. There is no basis for Uniloc’s objection because Ericsson’s
`
`3
`
`
`

`

`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`II. Ericsson’s second IPR petition does not implicate the concerns
`regarding serial petitions contemplated by General Plastic.
`
`The Board should not use its discretion to deny institution because
`
`Ericsson’s two petitions are not the sort of parallel petitions contemplated by the
`
`Trial Practice Guide as placing “a substantial and unnecessary burden on the Board
`
`and the patent owner.” Consolidated Trial Practice Guide at 59; see also General
`
`Plastic, IPR2016-01357, Paper 19 (PTAB Sept. 6, 2017) (precedential); Valve
`
`Corp. v. Elec. Scripting Prods., Inc., IPR2019-00064, Paper 10 (PTAB May 1,
`
`2019) (precedential) (“Valve II”). Unlike in Valve II, Ericsson’s second IPR
`
`petition is a copycat joinder petition, rendering the analysis of the General Plastic
`
`factors different than the analysis in Valve II.
`
`For example, with respect to General Plastic’s third factor, while Uniloc
`
`argues that Ericsson is “seeking to take advantage” of the Patent Owner’s
`
`preliminary response to Ericsson’s earlier IPR petition (IPR2019-01550), Opp’n
`
`at 7, that argument makes little sense here. Ericsson’s joinder IPR petition is
`
`substantively identical to the IPR petition filed by Microsoft in IPR2019-01116
`
`before Patent Owner’s preliminary response. “Road-mapping” is simply not at
`
`Supplemental Motion for Joinder (Paper 9) is within the allowed 15-page limit (37
`
`C.F.R. § 42.24(a)), and Ericsson’s Paper 3 complies with the five-page limit
`
`specified in the Consolidated Trial Practice Guide at 60, n. 3.
`
`4
`
`

`

`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`issue where the second petition is substantively identical to a petition filed before
`
`Patent Owner’s preliminary response.
`
`In short, instituting this joinder petition would not add any additional burden
`
`to the Board or to Patent Owner, as this joinder petition is substantively identical to
`
`Microsoft’s ongoing IPR, and Ericsson has agreed to act in an understudy capacity.
`
`III. Conclusion
`
`Unless Microsoft ceases participation in the joined IPR, Ericsson intends to
`
`assume a classic “understudy” role. For the reasons above and in Ericsson’s
`
`Motion, Ericsson respectfully requests that the Board (1) institute Ericsson’s
`
`Petition for Inter Partes Review of U.S. Patent No. 7,016,676; and (2) grant
`
`joinder with IPR2019-01116 on the terms set forth above and in Ericsson’s
`
`Supplemental Motion for Joinder.
`
`
`
`
`
`5
`
`
`

`

`
`Dated: February 24, 2020
`
`
`
`
`
`
`
`
`
`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`
`Respectfully submitted,
`
`/J. Andrew Lowes/
`J. Andrew Lowes
`Lead Counsel for Petitioner
`Registration No. 40,706
`HAYNES AND BOONE, LLP
`2323 Victory Ave. Suite 700
`Dallas, TX 75219
`Phone: (972) 680-7557
`andrew.lowes.ipr@haynesboone.com
`
`Clint Wilkins
`Registration No. 62,448
`HAYNES AND BOONE, LLP
`2323 Victory Ave. Suite 700
`Dallas, TX 75219
`Phone: (972) 739-6927
`clint.wilkins.ipr@haynesboone.com
`
`Angela Oliver
`Registration No. 73,271
`HAYNES AND BOONE, LLP
`2323 Victory Ave. Suite 700
`Dallas, TX 75219
`Phone: (202) 654-4552
`angela.oliver.ipr@haynesboone.com
`
`ATTORNEYS FOR PETITIONER
`
`
`
`6
`
`
`

`

`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`
`
`
`CERTIFICATE OF SERVICE
`
`Pursuant to 37 C.F.R. §§ 42.6(e) and 42.105(b), the undersigned certifies that
`
`a true and correct copy of the foregoing “REPLY TO PATENT OWNER
`
`OPPOSITION TO PETITIONER’S SUPPLEMENTAL MOTION FOR
`
`JOINDER” was served on the February 24, 2020 as detailed below:
`
`Date of service February 24, 2020
`
`Manner of service Electronic Mail to: ryan@etheridgelaw.com;
`brett@etheridgelaw.com; jim@etheridgelaw.com;
`brian@etheridgelaw.com; jeff@etheridgelaw.com
`
`Documents served REPLY TO PATENT OWNER OPPOSITION TO
`PETITIONER’S SUPPLEMENTAL MOTION FOR
`JOINDER
`
`Persons Served Ryan Loveless
`Brett Mangrum
`James Etheridge
`Brian Koide
`Jeffrey Huang
`Etheridge Law Group
`2600 E. Southlake Blvd., Ste. 120-324
`Southlake, TX 76092
`
`
`
`Courtesy copies were also sent by electronic service via email to the following
`
`counsels of record in the related Inter Partes Review IPR2019-01116:
`
`Petitioner’s Counsel
`Derrick W. Toddy
`derrick.toddy@klarquist.com
`Andrew M. Mason
`
`Patent Owner’s Counsel
`Ryan Loveless
`ryan@etheridgelaw.com
`Brett A. Mangrum
`
`7
`
`
`

`

`Reply to Opp’n to Suppl. Mot. for Joinder
`Case No. IPR2020-00376 (U.S. Patent No. 7,016,676)
`andrew.mason@klarquist.com
`brett@etheridgelaw.com
`Todd M. Siegel
`James Etheridge
`todd.siegel@klarquist.com
`jim@etheridgelaw.com
`KLARQUIST SPARKMAN, LLP
`Jeffrey Huang
`One World Trade Center, Suite 1600
`jeff@etheridgelaw.com
`121 SW Salmon Street
`ETHERIDGE LAW GROUP
`Portland, Oregon, 97204
`2600 E. Southlake Blvd., Ste. 120-324
`
`Southlake, Texas 76092
`
`
` By: /J. Andrew Lowes/
`J. Andrew Lowes
` Lead Counsel for Petitioner
`Registration No. 40,706
`
`
`
`
`
`8
`
`
`

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