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`———————
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`———————
`
`APPLE INC.,
`Petitioner,
`
`v.
`
`AIRE TECHNOLOGY LIMITED,
`Patent Owner,
`
`———————
`
`IPR2022-01137
`U.S. Patent No. 8,581,706
`
`________________
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`
`
`
`PETITIONER’S SUR-REPLY TO PATENT OWNER’S REPLY TO
`OPPOSITION TO MOTION TO AMEND
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`TABLE OF CONTENTS
`Petitioner’s Exhibit List ........................................................................................... iii
`
`I.
`
`Introduction .......................................................................................................... 1
`
`II. The claims are unpatentable under any proposed interpretation. ........................ 1
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`III. Substitute claims 23-26 are obvious under (pre-AIA) 35 U.S.C. § 103. ............ 2
`
`A. Guthery explicitly describes an example in which no steps are required
`between “selection” and “subsequent communication.” .............................. 3
`
`B. Patent Owner improperly relies on unclaimed requirements for the
`claimed “selection.” ...................................................................................... 5
`
`IV. The Specification does not provide written description support for the
`scope of the newly proposed language. ..................................................................... 6
`
`V. The Opposition properly relies on the entirety of the record to show the
`substitute claims are unpatentable ...........................................................................12
`
`
`
`
`
`ii
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`PETITIONER’S EXHIBIT LIST
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`
`
`Ex.1001
`
`Ex.1002
`Ex.1003
`
`Ex.1004
`
`Ex.1005
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`Ex.1006
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`Ex.1007
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`Ex.1008
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`Ex.1009
`Ex.1010
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`Ex.1011
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`Ex.1012
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`Ex.1013
`
`Ex.1014
`
`Ex.1015
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`U.S. Patent No. 8,581,706
`
`Prosecution History of U.S. Patent No. 8,581,706
`Declaration of Dr. Joshua Phinney under 37 C.F.R. § 1.68
`
`Curriculum Vitae of Dr. Joshua Phinney
`
`U.S. Patent No. 6,824,064 to Guthery et al. (“Guthery”)
`JP2000163539 to Nozawa et al. (“Nozawa”) – Certified English
`Translation
`
`RFID Handbook: Radio-Frequency Identification Fundamentals
`and Applications, Klause Finkenzeller (1999)
`
`Smart Card Handbook: Third Edition, Wolfgang Rankl (3rd ed.
`2003)
`
`Reserved.
`Reserved.
`
`Complaint, Aire Technology Ltd. v. Apple Inc. 6-21-cv-01101
`(W.D. Tex. Oct. 22, 2021)
`
`Infringement Contentions, Aire Technology Ltd. v. Apple Inc. 6-21-
`cv-01101 (W.D. Tex. Oct. 22, 2021)
`
`Scheduling Order, Aire Technology Ltd. v. Apple Inc. 6-21-cv-
`01101 (W.D. Tex. Oct. 22, 2021)
`Standing Order Governing Proceedings (OGP) 4.1
`
`Complaint, Aire Technology Ltd v. Samsung Electronics Co., Ltd.,
`6:21-cv-00955 (W.D. Tex. Sep. 15, 2021)
`
`Ex.1016
`
`JP2000163539 to Nozawa et al. (original)
`
`iii
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`
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`
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`
`Ex.1017
`
`Ex.1018
`Ex.1019
`
`Ex.1020
`
`Ex.1021
`Ex.1022
`
`Ex.1023
`
`Ex.1024
`
`Ex.1025
`
`Ex.1026
`
`Internet Archive capture of “Wiley:Smart Card Handbook, 3rd
`Edition,”
`https://web.archive.org/web/20041026102425/http://www.wiley.co
`m:80/WileyCDA/WileyTitle/productCd-0470856688.html
`(archived October 26, 2004)
`
`Declaration of Franchesca Ruiz
`Reserved.
`
`Reserved.
`
`Reserved.
`Reserved.
`
`Federal District Court Trial Statistics (June 2022)
`
`Email chain with Board granting Petitioner’s request to file
`preliminary reply briefs
`Plaintiff Aire Technology Ltd.’s Motion to Amend Preliminary
`Infringement Contentions, Aire Technology Ltd. v. Apple Inc. 6-21-
`cv-01101 (W.D. Tex. Sept. 30, 2022)
`Supplemental Declaration of Dr. Joshua Phinney under 37 C.F.R. §
`1.68
`
`iv
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`
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`
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`
`I.
`
`Introduction
`Patent Owner filed a Motion to Amend (“Motion,” Paper 16) with substitute
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`claims 23-26, Petitioner filed an opposition (“Opposition,” Paper 19). The Board
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`issued preliminary guidance (“Guidance,” Paper 21) which stated that “Petitioner
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`(or the present record) has shown that Guthery discloses or renders obvious each of
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`the newly recited limitations of proposed substitute claims 23–26.” Guidance, 11.
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`Patent Owner then filed a reply (“PO Reply,” Paper, 23). For the reasons below,
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`Patent Owner’s reply does not refute Petitioner’s obviousness analysis presented in
`
`the Opposition. Petitioner further maintains that the substitute claims lack written
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`description support and enablement under Patent Owner’s proposed construction.
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`II. The claims are unpatentable under any proposed interpretation.
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`The claims are unpatentable under the Board’s interpretation provided in the
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`preliminary guidance. Guidance, 7. Substitute claim 23 recites “wherein after
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`selection of one of the plurality of applications, subsequent communication
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`between the reading device and the selected application takes place without
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`requiring any further steps.” In the Guidance, the Board interpreted this language
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`to “not require any further steps between selection and the subsequent
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`communication.” Guidance, 7. It is unclear from the Patent Owner Reply whether
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`Patent Owner agrees or disagrees with the Board’s interpretation. Patent Owner
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`states only that “[o]nce selected, the communication device will then control
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`1
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`communications between the reading device and the selected application, such that
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`subsequent communication, i.e., after application selection, ‘takes place without
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`requiring any further steps.’” PO Reply, 3.
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`The substitute claims, however, are unpatentable under any understanding. If
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`the Board maintains its interpretation from the preliminary guidance, then the
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`claims are obvious for the reasons provided in the Opposition. Opposition, 13-16.
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`If, instead, the claims are interpreted as written—which requires communication
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`without any steps—the claims would recite the impossible and lack enablement for
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`the reasons provided in the Opposition. See Opposition, 11-13 (communication
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`cannot occur without requiring some “steps,” e.g., formatting and transmitting).
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`III. Substitute claims 23-26 are obvious under (pre-AIA) 35 U.S.C. § 103.
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`Patent Owner’s Reply fails to refute Petitioner’s showing of obviousness.
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`The Opposition explains how substitute claims 23-26 are obvious in view of
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`Guthery and Nozawa—the same prior art combination presented in the petition.
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`Opposition, 13-20. To the extent the claims are interpreted to not require any steps
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`between selection and subsequent communication, they are rendered obvious by
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`the prior art. Patent Owner’s arguments fail to refute Petitioner’s obviousness
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`analysis because they (1) improperly characterize the analysis as relying on silence
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`alone and (2) rely on claim limitations that do not exist.
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`2
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`A. Guthery explicitly describes an example in which no steps are
`required between “selection” and “subsequent communication.”
`Guthery describes an application selection process in which the host
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`(“reading device”) sends a request to an application on the smart card and receives
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`a permission-to-send (PTS) packet confirming its selection. See Opposition, 14;
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`Ex.1005, 12:17-52. Guthery’s multi-step selection process is consistent with Patent
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`Owner’s understanding that “‘selecting an application’ as claimed is not a single
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`step, but rather a function that may involve several steps.” PO Reply, 6. After
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`receiving the permission-to-send packet (“after selection of one of the plurality of
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`applications”), the host then begins to communicate with the application
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`(“subsequent communication”). Ex.1005, 12:17-52. Fig. 15 of Guthery, as
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`annotated in the Opposition, illustrates an example of this sequence, where
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`application selection spans steps 320-348, and communication subsequently begins
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`at step 350 with no steps between 348 and 350. Ex.1005, 12:54-59, Fig. 15.
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`Patent Owner ignores this explicit teaching of Guthery and instead
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`mischaracterizes Petitioner’s position: “Petitioner argues that Guthery teaches this
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`negative limitation because Guthery is in essence silent with respect to the steps
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`being performed between reference numbers 348 and 350.” PO Reply, 10. Patent
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`Owner then argues that “[n]egative limitations, however, are not taught by the
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`prior art by silence alone.” PO Reply, 10.
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`But Guthery is not silent with respect to the steps “required” for the
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`3
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`interaction between the host and application. Guthery illustrates in Fig. 15B-C
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`exactly which steps are required for application selection and communication—and
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`no steps are required between the last step of selection (348) and the first step of
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`communication (350). In other words, as long as all the steps shown in Fig. 15B-C
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`are performed, there will be communication between the host and smart card—and
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`no other steps are “required” as claimed.
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`The facts here are distinguishable from the non-precedential case cited by
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`Patent Owner. PO Reply, 10 (citing International Business Machines Corporation
`
`v. Iancu, 759 Fed. Appx. 1002, 1011 (Fed. Cir. 2019)). There, the Federal Circuit
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`reversed the Board’s obviousness finding because the Board “could not tell one
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`way or the other whether” the user authentication action in the prior art disclosed a
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`“single-sign-on operation.” IBM at 15. The Court thus found that “[s]ilence in that
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`sense would not by itself suffice for the Petitioner to meet its burden.” Id. But here,
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`one can tell that the prior art teaches what is claimed because Guthery explicitly
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`illustrates that no steps are required between step 348 (end of the selection process)
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`and step 350 (start of subsequent communication) in Guthery for the reasons given
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`above. Even if Guthery did contemplate additional optional steps between steps
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`348 and 350 not shown in Fig. 15C (which it does not), Guthery would still meet
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`the claim because the claim only recites the absence of “required” steps.
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`Accordingly, Patent Owner has not properly refuted Petitioner’s obviousness
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`4
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
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`analysis.
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`Patent Owner improperly relies on unclaimed requirements for
`B.
`the claimed “selection.”
`Patent Owner also disputes the specific steps in Guthery that Petitioner has
`
`identified as corresponding to the claimed “selection” process. PO Reply, 11-12.
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`Patent Owner tries to draw the box differently: “Application selection as claimed
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`therefore occurs in Guthery when the host 60 receives the application index in
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`packet 60, not after receiving the PTS packet, as Petitioner contends.” PO Reply,
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`11-12. But Patent Owner does not point to anything in the claim language itself
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`that precludes Petitioner’s identification. In fact, Petitioner’s identification is
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`consistent with Patent Owner’s own understanding of the selection process: “the
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`claimed selection process includes the steps necessary for the reading device to
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`engage in communications with the selected application.” PO Reply, 11. In
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`Guthery, step 348 (receiving the PTS packet) is a step necessary for the host to
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`engage in communications with the selected application—the host will not
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`communicate with the application until it has received the PTS packet. Ex.1005,
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`3:52-57 (“A permission-to-send packet is received from the addressed application
`
`once sufficient memory has been allocated to the addressed application.
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`Information is then sent to the addressed application upon receiving, at the host,
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`the permission-to-send packet.”). Step 348 is thus included in Guthery’s selection
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`process. There are no further steps (required or otherwise) between step 348 and
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`5
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`step 350, the first communication step. See Opposition, 14-16.
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`Patent Owner’s attorney argument cannot overcome Petitioner’s evidence-
`
`based showing because it is based upon alleged requirements not recited in the
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`claims. According to Patent Owner, the selection process is complete “when the
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`selected application is sufficiently addressed by the reading device to begin
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`communicating with the data carrier,” where this “occurs no later than when the
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`reading device receives the identification number assigned to the application, or,
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`when session numbers are used, no later than when the application is addressed
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`uniquely with the session numbers.” PO Reply, 11. But Patent Owner does not
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`(and cannot) point to anything in the claim that supports such a meaning of
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`“selection.” The claim merely recites “selection of one of the plurality of
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`applications”—nothing more. Had Patent Owner wished the term “selection” to be
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`met only “when the selected application is sufficiently addressed by the reading
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`device to begin communicating with the data carrier” and “no later than when the
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`reading device receives the identification number assigned to the application, or,
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`when session numbers are used, no later than when the application is addressed
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`uniquely with the session numbers,” Patent Owner could have added such
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`limitations when it drafted the substitute claims. Instead, Patent Owner elected to
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`broadly recite “selection” with no further requirements.
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`IV. The Specification does not provide written description support for the
`scope of the newly proposed language.
`6
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`The claims lack written description support because they attempt to claim
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`the “selection of one of the plurality of applications” step more broadly than what
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`is actually disclosed. Although it is true that ‘[c]laims are not interpreted in a
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`vacuum, but are part of and are read in light of the specification.’ (Slimfold Mfg.
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`Co. v. Kinkead Indus., Inc., 810 F.2d 1113, 1116 (Fed.Cir.1987)), claims cannot
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`omit “essential or critical features of the invention.” See Gentry Gallery Inc. v. the
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`Berkline Corp., 134 F.3d 1473, 1480 (claims to a sectional sofa comprising, inter
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`alia, a console and a control means were held invalid for failing to satisfy the
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`written description requirement where the claims were broadened by removing
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`the location of the control means).
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`For example, the claims here lack the “essential” feature of which element
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`performs the selection. The Board notes “paragraph 21 of the Specification makes
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`it clear that ... ‘[t]he reading device’ is the element that ‘selects an application.’”
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`Guidance, 7; see also Ex.1002, p.290, ¶ [0021] (“[w]hen an application has been
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`selected for further communication by the reading device”). If the specification
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`makes clear that the invention covers only the reading device making the selection,
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`the claim cannot omit that essential feature. The substitute claims cannot cover a
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`broader invention in which any device makes the selection.
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`The unrecited “essential” feature is important here because the result is a
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`claim scope that is much broader than what is actually disclosed. As explained in
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`7
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`
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`the Opposition, the proposed claim amendments add new matter because they
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`“recite subject matter different than the subject matter possessed by the inventor at
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`the time of filing.” Opposition, 2. The substitute claims recite that no further steps
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`are required “after selection of one of the plurality of applications.” Motion, 4.
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`Because they don’t recite what performs the selection, the claim scope is broad
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`enough to include selection by the smart card itself or something else entirely—
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`including manual selection by a human user. But the specification does not provide
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`for selection by anything besides the reading device. The proposed claims are thus
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`far broader in scope than the invention possessed by the inventor upon filing. The
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`same issue applies to when the selection of an application takes place and for what
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`purpose the application is being selected. See Opposition, 3.
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`Because the substitute claims omit essential features of the selection step and
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`are thus of a scope not disclosed in the specification, the substitute claims add new
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`matter in violation of 35 U.S.C. § 316(d). Despite providing this statutory basis in
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`the Opposition, Patent Owner argues that “Petitioner has not provided any basis for
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`its self-imposed requirements for the claims to recite, when selection takes place,
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`which element, and for what the application is being selected. That is because there
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`is no reason.” PO Reply, 5; Opposition, 1. But Petitioner is not imposing
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`requirements as to what must be recited in the claims. Rather, Petitioner’s position
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`is that the scope of the substitute claims is not supported by the specification.
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`8
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`Patent Owner cannot fix the lack of “essential” features in the claims by
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`importing limitations from the specification, as they suggest: “The claims when
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`read in light of the specification, do not require Petitioner’s limitations.” PO Reply,
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`5. Patent Owner’s position, however, does more than just interpret a claim term in
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`light of the specification. Rather, Patent Owner is seeking to add an entirely new
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`limitation to the claim—that selection is done by the reader. But the Federal
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`Circuit has “cautioned against reading limitations into a claim from the preferred
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`embodiment described in the specification, even if it is the only embodiment
`
`described, absent clear disclaimer in the specification.” In re Bigio, 381 F.3d 1320,
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`1325 (Fed. Cir. 2004); see also Phillips v. AWH Corp., 415 F.3d 1303, 1323 (Fed.
`
`Cir. 2005) (en banc) (The Court “expressly rejected the contention that if a patent
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`describes only a single embodiment, the claims of the patent must be construed as
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`being limited to that embodiment”). For this reason, along with the reasons
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`provided in the Opposition, Petitioner maintains that the substitute claims
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`improperly add subject matter in violation of 35 U.S.C. 316(d).1
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`Patent Owner likewise seeks to improperly import limitations into its own
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`claim amendments with respect to claim 24. Substitute claim 24 requires
`
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`1 Substitute claims 25 and 26 recite similar subject matter. Thus, the reasoning
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`described above with respect to claim 23 similarly applies to claims 25 and 26.
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`9
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`communication “without requiring any further steps after the communication
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`readiness signals are generated.” Motion, 5-6. But the portions of the
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`specification identified by Patent Owner lack any disclosure of “communication”
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`after generation of “communication readiness signals.” Opposition, 7-8. For this
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`reason alone, the Motion fails with respect to claim 24. See Guidance, 10.
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`Patent Owner responds to the Opposition’s analysis by importing the term
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`“second” communication readiness signal into the claim—despite there being no
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`first communication readiness signal recited. Citing to the specification, Patent
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`Owner notes that “the communication device may later generate another
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`‘communication readiness signal for that application … with which the reading
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`device [] actively communicated last, in order for example, to bring to an end a
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`data communication that was commenced by not completed.’” PO Reply, 8
`
`(emphasis added). Referring to this “second readiness signal,” Patent Owner
`
`argues that “the reader can communicate with the selected application
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`subsequently ‘without requiring any further steps after the [second]
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`communication-readiness signals are generated.’” PO Reply, 8 (emphasis and
`
`bracket in the original). Patent Owner’s use of a bracket to add the term “second”
`
`into its claim construction represents an improper importation of limitations. Had
`
`Patent Owner wished to claim this “second readiness signal” concept, they could
`
`have clearly done so. Patent Owner instead chose to broadly recite that no further
`
`10
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`steps are required after communication readiness signals are generated—a concept
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`not supported in the specification.
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`Claim 24 is also inconsistent with Patent Owner’s own understanding of
`
`independent claim 23, the claim upon which claim 24 depends. Patent Owner
`
`states that: “Claim 23 as written, therefore, recites the occurrence of the generation
`
`function, followed by the selection function thereafter, which delineates the
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`subsequent communications that occur “without requiring any further steps.” PO
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`Reply, 3-4 (emphasis in original). Patent Owner similarly states “‘selecting an
`
`application’ … may involve several steps that occur between the generation
`
`function and when the reader is engaged in further communications with the
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`application”—i.e., the selection steps are “between” generation and
`
`communication. PO Reply, 6-7. Claim 24, in direct contrast, requires
`
`communication to happen “subsequently without requiring any further steps
`
`[including selection] after the communication-readiness signals are generated.”
`
`Patent Owner’s approach of amending the claims with broad language and
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`then seeking narrow interpretations by importing limitations from the specification
`
`is of particular concern in the context of its Motion to Amend. Patent Owner had
`
`the opportunity to draft claim language that precisely and clearly defines the scope
`
`of the claimed invention. It would be improper to now interpret Patent Owner’s
`
`specifically selected language to include additional limitations that Patent Owner
`
`11
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`itself elected not to include when given the opportunity.
`
`V. The Opposition properly relies on the entirety of the record to show the
`substitute claims are unpatentable
`
`Petitioner’s Opposition relies on the same prior art combination as the
`
`Petition to show obviousness of the substitute claims. To avoid unnecessarily
`
`repeating the analysis from the Petition, the Opposition cites to the petition for the
`
`unchanged claim limitations. See Opposition, 13-14. Patent Owner characterizes
`
`the Opposition’s approach of citing to the Petition for unchanged claim limitations
`
`as an improper incorporation by reference in violation of 37 C.F.R. § 42.6(a)(3).
`
`PO Reply, 10, n. 1. Petitioner did not incorporate by reference—and did not need
`
`to. “[T]he Board determines whether substitute claims are unpatentable by a
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`preponderance of the evidence based on the entirety of the record, including any
`
`opposition made by the petitioner.” Lectrosonics, Inc. v. Zaxcom, Inc., IPR2018-
`
`01129, 01130, Paper 15 at 4 (PTAB Feb. 2019) (precedential). Consistent with this
`
`precedent, the Board has specifically approved Petitioner’s approach here. See
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`Offshore Technical Compliance, LLC v. Innovative Pressure Testing, LLC,
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`IPR2020-00923, Paper 43 at 75 (“With respect to the limitations of the proposed
`
`substitute claims that are identical to their counterparts in the original claims, we
`
`do not find Petitioner’s reliance to be an improper incorporation ... we see little
`
`purpose to requiring that Petitioner copy lengthy arguments wholesale from its
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`Petition into its Opposition”).
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`12
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
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`Dated: September 13, 2023
`
`HAYNES AND BOONE, LLP
`2323 Victory Avenue, Suite 700
`Dallas, Texas 75219
`Telephone: 972-739-8663
`Facsimile: 214-200-0853
`
`
`
`
` Respectfully submitted,
`
`/Scott T. Jarratt/
`Scott T. Jarratt
`Registration No. 70,297
`Counsel for Petitioner
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`13
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`Petitioner’s Sur-reply to Reply to Opposition to Motion to Amend
`IPR2022-01137 / U.S. Patent No. 8,581,706
`CERTIFICATE OF SERVICE
`
`The undersigned certifies, in accordance with 37 C.F.R. § 42.6(e), that
`
`service was made on the Patent Owner as detailed below.
`
`Date of service September 13, 2023
`
`Persons served
`
`
`
`Manner of service Electronic Mail: bcooper@bc-lawgroup.com
` robert@auchterlaw.com
` ap@lombardip.com
` Aire_Counsel@b-clg.com
`
`Documents served Petitioner’s Sur-reply to Patent Owner’s Reply to
`Opposition to Motion to Amend
`
`Brett Cooper
`BC Law Group, P.C.
`200 Madison Avenue, 24th Floor
`New York, NY 10016
`
`Robert A. Auchter
`Auchter PLLC
`1629 K Street, NW, Suite 300
`Washington, DC 20006
`
`Antonio Papageorgiou
`LOMBARD & GELIEBTER LLP
`230 Park Avenue, 4th Floor West
`New York, NY 10169
`
`
`
`
`
`
`
`
`
`/Scott T. Jarratt/
`Scott T. Jarratt
`Registration No. 70,297
`Counsel for Petitioner
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`14
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