`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`YITA LLC,
`Petitioner,
`
`v.
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`MACNEIL IP LLC,
`Patent Owner.
`____________
`
`Case IPR2020-01139
`Patent No. 8,382,186
`____________
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`PATENT OWNER’S UNOPPOSED MOTION TO SEAL
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`
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`On July 28, 2021, the Board granted Patent Owner MacNeil IP LLC’s
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`(“Patent Owner”) motion to submit supplemental information, and authorized the
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`filing of Exhibits 2114, 2115, 2126-2129, and 2132-2137 in this proceeding. See
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`Paper 53 at 13. Exhibit 2126 is the Corrected Declaration of Ryan Granger, which
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`is identical to Exhibit 2042 (already of record) except for the signature page. As
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`detailed in Patent Owner’s recent motion to seal (Paper 51), the Declaration of Ryan
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`Granger contains Patent Owner’s confidential business information, including
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`confidential sales and gross revenue information. Patent Owner has filed
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`confidential and redacted versions of Exhibit 2126 concurrently with this motion.
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`Patent Owner moves to seal the confidential version of Exhibit 2126 pursuant to
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`the Board’s Default Protective Order entered in this proceeding. Paper 48. Patent
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`Owner has met and conferred with Petitioner, and Petitioner does not oppose this
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`motion.
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`Patent Owner addresses the Argentum standard below and respectfully
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`requests that the Board find good cause to maintain Exhibit 2126 under seal. As
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`noted above, Patent Owner recently filed a motion to seal its Patent Owner
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`Response and Exhibit 2042, the Declaration of Ryan Granger. Paper 51. The
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`present motion seeks to seal information in Exhibit 2126 that is identical to the
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`information Patent Owner seeks to seal in Exhibit 2042.
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`1
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`
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`The designated information, which is held in confidence and not
`I.
`shared with the public, should be protected under the default protective order.
`Patent Owner’s commercial information, including the number of floor trays
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`sold and annual gross revenue, is confidential to Patent Owner, a private company.
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`EX2140. Patent Owner compiled this information from Patent Owner’s internal
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`sales, marketing, and financial documentation. Compare EX2126, ¶73, with
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`Permobil Inc. v. Pride Mobility Prod. Corp., IPR2013-00411, Paper 40 at 2
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`(P.T.A.B. July 2, 2014) (recognizing confidentiality of non-public “company . . .
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`marketing data”); IPR2013-00411, Paper 25 at 2 (P.T.A.B. May 20, 2014)
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`(identifying this information as “internal company procedures on market data” and
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`“company-confidential marketing information”). That Patent Owner does not
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`attach documents from which the information was derived is irrelevant. The
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`redacted information in Exhibit 2126 is confidential regardless of the document in
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`which the information appears. Patent Owner does not publish this information,
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`and it cannot be derived from public sources. EX2126, ¶¶79-80 (explaining Patent
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`Owner’s tray sales to OEMs, who sell the trays under Patent Owner’s marks or
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`under their own marks). On behalf of Patent Owner, undersigned counsel certifies
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`the confidential information sought to be sealed has not, to their knowledge, been
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`published or otherwise made public.
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`2
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`
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`The Board has consistently sealed product sales and internal financial
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`documents. Quest USA Corp. v. PopSockets LLC, IPR2018-00497, Paper 59 at 87-
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`90 (P.T.A.B. Aug. 12, 2019) (sealing “sales data by year from 2014 to 2018”); Endo
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`Pharm, Inc. v. Depomed, Inc., IPR2014-00656, Paper 59 at 2 (P.T.A.B. June 3,
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`2015) (sealing “product sales”); Cisco Sys., Inc. v. Crossroads Sys., Inc., IPR2014-
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`01544, Paper 50 at 29 (P.T.A.B. Jan. 29, 2016) (sealing “confidential sales and
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`licensing information”). The Board’s default protective order permits for protection
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`of sensitive commercial information. Consolidated Trial Practice Guide, 19 (Nov.
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`2019) (defining “confidential information” to match Fed. R. Civ. P. 26(c)(1)(G),
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`including “other . . . commercial information”); Arista Networks, Inc. v. Cisco Sys.,
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`Inc., IPR2016-00309, Paper 51 at 2-3 (P.T.A.B. May 8, 2017) (accepting movant’s
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`“representations” regarding “highly sensitive financial” information). And
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`petitioner’s real party in interest similarly designated annual gross revenue as
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`ATTORNEY EYES ONLY in the parties’ parallel district court proceedings.
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`Patent Owner would be harmed by public disclosure.
`II.
`Public disclosure of this information would harm Patent Owner’s competitive
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`position in the automotive accessory market. Patent Owner would be harmed by
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`competitor insight into Patent Owner’s pricing and marketing decisions. For
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`example, Patent Owner’s historical price per floor tray set can be determined from
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`the redacted information. EX2126, ¶73. Patent Owner would be harmed by insight
`3
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`into Patent Owner’s market share and the relevant market size, motivating copying
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`and infringement of Patent Owner’s intellectual property, such as that leading to this
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`proceeding. Public disclosure would also reveal Patent Owner’s corporate valuation
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`and financial resources, causing competitive harm in negotiations relating to mergers
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`& acquisitions, supplier agreements, and other commercial matters. See Athena
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`Automation Ltd. v. Husky Injection Molding Sys, Ltd., IPR2013-00167, Paper 32 at
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`2-3 (sealing information relating to the movant's “valuation”).
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`III. Patent Owner genuinely relies on the designated information.
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`Patent Owner relies on the redacted information to establish commercial
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`success of products embodying the claimed invention. Sales demonstrating market
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`share of those products are probative evidence in establishing commercial success.
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`Cisco Systems, Inc. v. Crossroad Systems, Inc., IPR2014-01463, Paper 49 at 35
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`(P.T.A.B. Mar. 16, 2016) (“An important component of the commercial success
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`inquiry is determining market share . . . .”); Fox Factory, Inc. v. SRAM, LLC,
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`IPR2016-01876, Paper 59 at 35-36 (P.T.A.B. Apr. 2, 2018). Patent Owner’s
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`genuine reliance on the information sought to be sealed only compounds the harm
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`from public disclosure, which would force Patent Owner to abandon significant
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`evidence of non-obviousness or expose sensitive business information.
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`4
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`
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`IV.
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`Patent Owner has performed only limited redactions.
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`Cognizant of the public interest in a complete and understandable record,
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`Patent Owner seeks to redact only limited information: (1) the annual quantity of
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`floor trays sold from 2004 to 2020, and (2) corresponding gross revenue. In Exhibit
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`2126, Patent Owner redacted only the actual numbers specifying annual quantity of
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`floor trays sold and corresponding gross revenue, not table headings that explain
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`what those numbers mean. EX2126, ¶73.
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`The designated information can be sealed while maintaining a
`V.
`complete and understandable public record.
`The public record is understandable even absent these limited redactions.
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`The public can understand that Patent Owner argues commercial success as
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`objective evidence of non-obviousness and that Exhibit 2126 provides evidence of
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`that commercial success. EX2126, ¶¶73-76. The public can understand that annual
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`floor tray sales from 2004 to 2020 evidence Patent Owner’s commercial success,
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`that sales have risen over time, and that Patent Owner links the tray sales to specific
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`revenue numbers. EX2126, ¶73. The public can understand the merits of Patent
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`Owner’s commercial success argument and the evidence supporting that argument
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`without the redacted information.
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`5
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`VI. CONCLUSION
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`For the foregoing reasons, Patent Owner respectfully requests that the Board
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`grant this unopposed motion to seal.
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`Dated August 4, 2021
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`
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`Respectfully submitted,
`
`/David G. Wille/
`David G. Wille (Reg. No. 38,363)
`BAKER BOTTS L.L.P.
`(214) 953-6595
`2001 Ross Ave., Suite 900
`Dallas, TX 75201-2980
`Attorneys for Patent Owner, MacNeil IP
`LLC
`
`6
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`
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`CERTIFICATE OF SERVICE
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`In accordance with 37 C.F.R. § 42.6(e), the undersigned certifies that on the
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`4th day of August, 2021, a complete and entire copy of this PATENT OWNER’S
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`UNOPPOSED MOTION TO SEAL and related documents were served on
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`Petitioner via electronic mail at the following addresses:
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`Mark P. Walters (Reg. No. 46,050)
`walters@LoweGrahamJones.com
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`Ralph W. Powers III, Reg. No. 63,504
`tpowers-PTAB@sternekessler.com
`
`Jason A. Fitzsimmons, Reg. No. 65,367
`jfitzsimmons-PTAB@sternekessler.com
`
`Stephen A. Merrill, Reg. No. 72,955
`smerrill-PTAB@sternekessler.com
`
`John J. Bamert, Reg. No. 74,859
`bamert@LoweGrahamJones.com
`
`PTAB@sternekessler.com
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`August 4, 2021
`Date
`
`
`
`/David G. Wille/
`David G. Wille (Reg. No. 38,363)
`BAKER BOTTS L.L.P.
`(214) 953-6595
`2001 Ross Ave., Suite 900
`Dallas, TX 75201-2980
`
`Attorneys for Patent Owner, MacNeil IP
`LLC
`
`7
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`