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`––––––––––––––
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`––––––––––––––
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`CELLCO PARTNERSHIP
`D/B/A VERIZON WIRELESS (“Verizon”)
`Petitioner
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`v.
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`HUAWEI DEVICE CO., LTD.
`(“Huawei”)
`Patent Owner
`––––––––––––––
`U.S. Patent No. 8,761,839
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`“Method And Mobile Terminal For Processing Contacts”
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`––––––––––––––
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`Inter Partes Review No. 2020-01117
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`VERIZON’S PRELIMINARY REPLY
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`LIST OF EXHIBITS
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`Exhibit Description
`Ex. 1001 U.S. Patent No. 8,761,839 to Yang et al.
`Ex. 1002 File History of U.S. Patent No. 8,761,839
`Ex. 1003 U.S. Patent No. 8,611,968 to Yang et al.
`Ex. 1004 File History of U.S. Patent No. 8,611,968
`Ex. 1005 European Patent No. 2,509,390
`Ex. 1006 File History of European Patent No. 2,509,390
`Ex. 1007 Huawei’s Infringement Claim Chart of The ’839 Patent
`Ex. 1008 U.S. Patent Application No. 2010/0062753 (“Wen”)
`Ex. 1009 U.S. Patent Application No. 2010/0146433 (“Murata”)
`Ex. 1010 U.S. Patent Application No. 2009/0271486 (“Ligh”)
`Ex. 1011 International Publication No. WO 2007/063499 (“Diederiks”)
`Ex. 1012 U.S. Patent Application No. 2009/0227296 (“Kim”)
`Ex. 1013 U.S. Patent Application No. 2011/0161076 (“Davis”)
`Ex. 1014 Declaration of Dr. Benjamin B. Bederson
`Ex. 1015 Huawei Technologies Co., Ltd. V. Verizon Communications,
`Inc., 6:20-cv-00090, Dkt. 1 (W.D. Tex. Feb 5, 2020)
`Ex. 1016 Huawei Technologies Co., Ltd. V. Verizon Communications,
`Inc., 6:20-cv-00090, Dkt. 45 (W.D. Tex. May 13, 2020)
`Ex. 1017 DocketNavigator – trial continuance statistics
`Ex. 1018 DocketNavigator – time to milestone statistics (nationwide)
`Ex. 1019 DocketNavigator – time to milestone statistics (WDTX)
`Ex. 1020 EDTX General Order 20-04
`Ex. 1021 Inv. No. 337-TA-1188 Order No. 7
`Ex. 1022 Judge Albright Standing Order Regarding Post-Markman
`Patent Cases (Apr 9, 2020)
`Ex. 1023 Supplemental Order Regarding Court Operations Under The
`Exigent Circumstances Created By The COVID-19 Pandemic
`(W.D. Tex. May 8, 2020)
`Ex. 1024 Judge Albright Standing Order Governing Proceedings (Feb
`26, 2020)
`Ex. 1025 DocketNavigator – Judge Albright patent cases statistics
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`i
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`Exhibit Description
`Ex. 1026 DocketNavigator – Delaware District patent cases statistics
`Ex. 1027 Curriculum Vitae of Benjamin B. Bederson
`Ex. 1028 B. Bederson et al., “The Craft of Information Visualization:
`Readings and Reflections,” Morgan Kaufmann Publishers Inc.
`(2003).
`Ex. 1029 B. Bederson et al., Pad++: A Zooming Graphical Interface for
`Exploring Alternate Interface Physics, 17-26.
`10.1145/192426.192435 (1994).
`Ex. 1030 P. Curran Email Stipulation (Oct. 27, 2020)
`Ex. 1031 Claim Construction Order, Huawei Technologies Co., Ltd. V.
`Verizon Communications, Inc., 6:20-cv-00090, Dkt. 73 (W.D.
`Tex. Nov. 30, 2020)
`Ex. 1032 Exhibit G to Huawei’s April 22, 2020 Infringement
`Contentions regarding U.S. Patent No. 8,761,839
`Ex. 1033 Tenth Supplemental Order Regarding Court Operations Under
`Exigent Circumstances Created by the COVID-19 Pandemic
`(W.D. Tex. Nov. 18, 2020)
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`ii
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`Pursuant to the Board’s Order of November 12, 2020 (Paper 7), Petitioner
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`files this Reply to Patent Owner’s Preliminary Response (“POPR,” Paper 6).
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`I.
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`SAND REVOLUTION II
`Sand Revolution II, LLC v. Continental Intermodal Group – Trucking LLC
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`found the Fintiv factors to weigh against discretionary denial under circumstances
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`similar to this case (post-Markman parallel proceeding before Judge Albright in
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`WDTX), and the same analysis applies here. See IPR2019-01393, Paper 24 at 4-14
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`(June 16, 2020) (informative) (“Sand”); see also Google LLC v. Parus Holdings,
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`Inc., IPR2020-00846, Paper 9 at 9-22 (Oct. 21, 2020) (“Parus”).
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`Factor 1 is Neutral (Possibility of a Stay) – Patent Owner (“PO”) speculates
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`about Judge Albright staying the litigation based on rulings in different cases with
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`different facts. POPR at 3-6. Factor 1 is neutral without “specific evidence” relating
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`to this case. Sand at 7 (finding Factor 1 neutral given only generalized evidence that
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`WDTX routinely denies stays); Apple Inc. v. Fintiv, Inc., IPR2020-00019, Paper 15
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`at 12 (May 13, 2020) (informative). Further, PO argues Petitioner somehow delayed
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`because PO provided infringement claim charts for this patent, among hundreds of
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`others, before litigation began. The Board has rejected similar arguments. Nvidia
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`Corp. v. Invensas Corp., IPR2020-00603, Paper 11 at 24 (Sept. 3, 2020) (“Nvidia”).
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`Factor 2 Favors Institution (Proximity of Trial Date to FWD) – It would
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`be error to “rely[] too heavily on the scheduled trial date” because “scheduled trial
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`1
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`dates are often subject to change.” In re: Apple, Inc., No. 2020-135, slip op. at 16 &
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`n.5 (Fed. Cir. Nov. 9, 2020). And WDTX has “not historically resolved cases so
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`quickly” as its “fast-paced schedule” might suggest. Id. Even if the WDTX trial
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`commences on October 4, 2021, the FWD in this case would trail by only 3.5
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`months. In Sand, the “relative close proximity” of a trial date scheduled 5 months
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`before the FWD deadline “weigh[ed] marginally in favor of not exercising discretion
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`to deny institution” given the district court’s own recognition of a “continuing degree
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`of … uncertainty of the court’s schedule.” Sand at 8-10 (emphasis added). Similar
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`uncertainty surrounds the trial date here. EX2009 at 158:20-159:10.
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`Indeed, as the Board noted in Parus, the courts in WDTX have issued ten
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`monthly suspension orders suspending trials during the COVID pandemic, with the
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`latest suspending all WDTX trials through the end of 2020 (EX1033), creating a
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`significant backlog of over 500 active patent cases, which is “persuasive evidence
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`that delays are possible.” Parus at 13-14.
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`Factor 3 Favors Institution (Investment in Parallel Proceedings) – Sand
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`emphasized this factor focuses on the investment “in the merits of the invalidity
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`positions.” Sand at 10. Here, as in Sand, “much of the district court’s investment
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`relates to ancillary matters untethered to the validity issue itself.” Id. at 11. Further,
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`the proper question is what investment is made as of the institution decision. Nvidia
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`at 21. While Markman has occurred and final infringement contentions will be
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`2
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`served before institution, fact discovery will be ongoing, expert invalidity reports
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`will not be due for 3.5 months, and substantive motion practice will not have started.
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`See EX2010; Sand at 11. Indeed, Patent Owner recently objected to Petitioner’s
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`invalidity-focused interrogatories in the litigation as “premature” because “[e]xpert
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`discovery has not yet begun.”
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`Factor 4 Favors Institution (Overlapping Issues) – In response to PO’s
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`argument in the POPR, Petitioner served PO’s litigation counsel with a stipulation
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`that Petitioner “will not pursue in the parallel district court proceeding (WDTX-6-
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`20-cv-00090) the prior art obviousness combinations on which trial is instituted for
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`the claims on which trial is instituted.” EX1030. In Sand and Parus, an almost
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`identical stipulation was found to effectively address the risk of duplicative efforts.
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`Sand at 11-12; Parus at 19-20.1 Moreover, in the litigation, the parties agreed to
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`“significantly narrow[] the number of claims asserted” for trial, making it likely the
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`district court will not address all issues of invalidity in the Petition. EX2010 at 2.
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`Factor 5 is Neutral (Overlapping Parties) – While Petitioner is the
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`defendant in the litigation, the Board in Parus explained that this factor “could weigh
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`1 Petitioner’s waiver “mitigates any concerns of duplicative efforts between the
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`district court and the Board.” Sotera Wireless, Inc. v. Masimo Corp., IPR2020-
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`01019, Paper 12, 18-19 (PTAB Dec. 1, 2020) (precedential).
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`3
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`either in favor of, or against, exercising discretion to deny institution, depending on
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`which tribunal was likely to address the challenged patent first.” Parus at 21.
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`Factor 6 Favors Institution (Other Considerations) – Despite PO’s
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`mischaracterizations, the Petition’s strong arguments favor institution. Sand at 13.
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`II.
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`PETITIONER’S ALLEGED INCONSISTENT 112(6) POSITIONS
`In Section VI of its POPR, PO argues that the Petition is “defective” because
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`Petitioner argued in the litigation that claim limitations 1a and 15e (the “setting” and
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`“set” limitations) are means-plus-function limitations subject to 112(6).
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`But there is no inconsistency here. At the time of the Petition, the parties in
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`the WDTX case had not even exchanged proposed terms for construction,.
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`Petitioners had not formulated the 112(6) indefiniteness positions for claims 1a and
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`15e it raised in the WDTX case at the time of the Petition and could not have
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`included them. 37 CFR 42.104(b)(3) therefore does not apply.
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`Moreover, while PO is correct that Petitioner did argue that limitations 1a and
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`15e were subject to 112(6) in the WDTX case, PO downplays that Judge Albright
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`rejected those arguments and construed both claim terms to have their plain
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`meaning. EX1031, 13-14. Thus, both this IPR and the district court case are now
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`proceeding under identical constructions, not inconsistent ones.
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`PO also argues that Petitioner is taking an inconsistent position because it may
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`subsequently appeal the WDTX decision. POPR, 20. PO argues an unknown. 112(6)
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`4
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`is not now at issue in either the WDTX case or here.
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`III. PO’S INCONSISTENT POSITIONS
`In Section VII of the POPR, PO argues that the Petition fails to establish that
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`limitations 1a and 15e are met, requiring an “express disclosure of how Wen’s
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`system performs the ‘setting’ action in Element 1[a].” POPR, 25-26.
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`The high standard of disclosure that PO requires with respect to the validity
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`of limitations 1a and 15e is entirely inconsistent with PO’s broad approach to
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`infringement of that same limitation in the WDTX case. There, PO argued in its
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`infringement contentions that a single picture along with a video statement that “All
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`of your current calls are displayed as bubbles on the top of your screen” is sufficient
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`to establish infringement by Verizon’s One Talk product. EX1032, 2. In other words,
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`PO imposes a high bar on limitations 1a and 15e for validity while simultaneously
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`employing a low bar for the same limitations for infringement.
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`PO’s own authority dictates that it is a serious issue when a party “takes
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`conflicting positions between this proceeding and the related district court
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`litigation.” OrthoPediatrics Corp. v. K2M, Inc., IPR2018-01548, Paper 9 at 10
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`(PTAB March 1, 2019). PO already picked its lane when it advocated for a broad
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`infringement read. PO should not be permitted to reverse course in this IPR and be
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`rewarded for its inconsistent positions across proceedings.
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`5
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`Date: December 21, 2020
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`By: /s/ James M. Glass
`James M. Glass
`QUINN EMANUEL URQUHART &
`SULLIVAN LLP
`51 Madison Avenue, 22nd Floor
`New York, NY 10010
`Email: jimglass@quinnemanuel.com
`Phone: 212-849-7142
`Fax: 212-849-7100
`
`Counsel for Petitioner Cellco
`Partnership d/b/a Verizon Wireless
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`6
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`CERTIFICATE OF SERVICE (37 C.F.R. §§ 42.6(E), 42.105(A))
`The undersigned hereby certifies that the foregoing document was
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`served on Patent Owner by email on all counsel of record.
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`Date: December 21, 2020
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`By: /s/ James M. Glass
`James M. Glass
`QUINN EMANUEL URQUHART &
`SULLIVAN LLP
`51 Madison Avenue, 22nd Floor
`New York, NY 10010
`Email: jimglass@quinnemanuel.com
`Phone: 212-849-7142
`Fax: 212-849-7100
`
`Counsel for Petitioner Cellco
`Partnership d/b/a Verizon Wireless
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`