`571-272-7822
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`
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`Paper 15
`Entered: October 13, 2022
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________
`
`PHILIP MORRIS PRODUCTS, S.A.,
`Petitioner,
`
`v.
`
`RAI STRATEGIC HOLDINGS, INC.,
`Patent Owner.
`____________
`
`
`
`IPR2020-00919
`Patent 9,901,123 B2
`____________
`
`
`
`
`Before JO-ANNE M. KOKOSKI, ELIZABETH M. ROESEL, and
`BRIAN D. RANGE, Administrative Patent Judges.
`
`KOKOSKI, Administrative Patent Judge.
`
`DECISION
`Denying Petitioner’s Request on Rehearing of
`Decision Denying Institution
`37 C.F.R. § 42.71(d)
`
`
`
`
`IPR2020-00919
`Patent 9,901,123 B2
`
`
`INTRODUCTION
`I.
`On November 16, 2020, the Board issued a Decision denying
`institution of an inter partes review of claims 27–30 of U.S. Patent
`No. 9,901,123 B2 (“the ’123 patent,” Ex. 1001). Paper 9 (“Decision” or
`“Dec.”). In the Decision, we evaluated the factors set out in Apple, Inc. v.
`Fintiv Inc., IPR2020-00019, Paper 11 (PTAB Mar. 20, 2020) (precedential)
`(“Fintiv”) and exercised our discretion under 35 U.S.C. § 314(a) to deny
`institution in view of a parallel proceeding involving the ’123 patent at the
`U.S. International Trade Commission (“ITC”). Dec. 6–13. On July 21,
`2022, Philip Morris Products, S.A. (“Petitioner”) filed a Request for
`Rehearing of that Decision (Paper 12, “Request” or “Req.”), and
`concurrently requested review by the Precedential Opinion Panel (Ex. 3001,
`“POP Request”). On July 26, 2022, the Precedential Opinion Panel
`dismissed the POP Request as untimely. Ex. 3002.
`For the reasons that follow, Petitioner’s Request is denied.
`II. DISCUSSION
`The applicable standard for a request for rehearing is set forth in
`37 C.F.R. § 42.71(d), which provides:
`A party dissatisfied with a decision may file a single request for
`rehearing without prior authorization from the Board. The
`burden of showing that a decision should be modified lies with
`the party challenging the decision. The request must specifically
`identify all matters the party believes the Board misapprehended
`or overlooked, and the place where each matter was previously
`addressed in a motion, an opposition, a reply, or a sur-reply. A
`request for rehearing does not toll times for taking action. Any
`request must be filed:
`…
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`2
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`IPR2020-00919
`Patent 9,901,123 B2
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`(2) Within 30 days of the entry of a final decision or a decision
`not to institute a trial.
`A request for rehearing in this proceeding was due within 30 days of
`the November 16, 2020 date of entry of the Decision. Petitioner’s Request
`was not filed within the rehearing period established by Rule 42.71(d) and is
`untimely.
`Petitioner argues that “[a]lthough the standard thirty-day time limit for
`rehearing requests on decisions denying institution has passed, the Board
`may waive such requirements without any showing.” Req. 4 (citing
`37 C.F.R. § 42.5(b)). Petitioner also argues that the Board can excuse a late
`action upon a showing of good cause, or upon a Board determination that
`consideration on the merits would be in the interests of justice, and that
`“both good cause and the interests of justice warrant rehearing.” Id. at 4–5
`(citing 37 C.F.R. § 42.5(c)(3)).
`In particular, Petitioner points to a guidance Memorandum1 issued on
`June 21, 2022 by the Director of the United States Patent and Trademark
`Office that Petitioner argues “confirmed that the Fintiv factors do not apply,
`and have never applied, to parallel investigations at the [ITC].” Req. 1
`(citing Memorandum, 5–6). Petitioner argues that, because the
`Memorandum provides that “the ‘plain language of the Fintiv factors’ does
`not apply to the ITC,” and the Board “relied on the existence of a parallel
`ITC action to justify its denial,” the Board would have instituted review but
`for its misapplication of Fintiv. Req. 5–7.
`
`
`1 Available at: https://www.uspto.gov/sites/default/files/documents/interim_
`proc_discretionary_denials_aia_parallel_district_court_litigation_memo_
`20220621_.pdf
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`IPR2020-00919
`Patent 9,901,123 B2
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`The Memorandum, however, specifically states that it “applies to all
`proceedings pending before the Office.” Memorandum, 9 (emphasis added);
`see also OpenSky Indus., LLC v. VLSI Tech. LLC, IPR2021-01064,
`Paper 102 at 49 n.19 (PTAB Oct. 4, 2022) (precedential) (Director’s
`decision “should not be treated as an endorsement of retroactive application
`of [the] Memorandum to institution decisions made before it issued.”). This
`proceeding has not been pending before the Office since at least
`December 16, 2020, the last day Petitioner could have filed a timely request
`for rehearing of our Decision. Therefore, the Memorandum does not apply
`to this proceeding. Because Petitioner’s arguments in its Request are
`premised on the Memorandum, Petitioner does not establish that there is
`good cause, or that it would be in the interests of justice, to re-open this
`long-closed proceeding. Accordingly, we decline to waive the filing
`requirements of Rule 42.71(d)(2), or to excuse the late filing of the Request.
`See 37 C.F.R. §§ 42.5(b), (c)(3).
`III. ORDER
`In consideration of the foregoing, it is hereby
`ORDERED that Petitioner’s Request for Rehearing is denied.
`
`
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`IPR2020-00919
`Patent 9,901,123 B2
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`PETITIONER:
`Jonathan M. Strang
`Matthew J. Moore
`Inge A. Osman
`Christopher W. Henry
`LATHAM & WATKINS LLP
`jonathan.strang@lw.com
`matthew.moore@lw.com
`inge.osman@lw.com
`christopher.henry@lw.com
`
`
`PATENT OWNER:
`
`David M. Maiorana
`Anthony M. Insogna
`Kenneth S. Luchesi
`Geoffrey K. Gavin
`Joshua R. Nightingale
`George N. Phillips
`JONES DAY
`dmaiorana@jonesday.com
`aminsogna@jonesday.com
`kluchesi@jonesday.com
`ggavin@jonesday.com
`jrnightingale@jonesday.com
`gphillips@jonesday.com
`
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