`
`By:
`
`Filed on behalf of:
`Patent Owner Masimo Corporation
`Irfan A. Lateef (Reg. No. 51,922)
`Ted M. Cannon (Reg. No. 55,036)
`Jarom D. Kesler (Reg. No. 57,046)
`Jacob L. Peterson (Reg. No. 65,096)
`
`
`
`KNOBBE, MARTENS, OLSON & BEAR, LLP
`2040 Main Street, Fourteenth Floor
`Irvine, CA 92614
`Tel.: (949) 760-0404
`Fax: (949) 760-9502
`E-mail:
`AppleIPR127-1@knobbe.com
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`
`
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`
`
`
`
`APPLE INC.,
`
`Petitioner,
`
`v.
`
`MASIMO CORPORATION,
`
`Patent Owner.
`
`
`
`
`
`
`
`Case IPR2022-01300
`U.S. Patent 7,761,127
`
`
`
`
`
`
`PATENT OWNER MOTION TO SEAL AND FOR ENTRY OF A
`PROTECTIVE ORDER
`
`
`
`
`
`Pursuant to 37 C.F.R. §§ 42.14 and 42.54, Patent Owner Masimo Corporation
`
`(“Masimo”) respectfully submits this opposed Motion to Seal and for Entry of a
`
`Protective Order. Masimo specifically moves to seal confidential versions of its
`
`Patent Owner Preliminary Response and Exhibits 2002-2004, 2006, 2007, 2009,
`
`2010, 2012-2016, 2018-2021, 2027, 2028, 2031, 2032, 2051, 2057, 2058, 2081, and
`
`2082. Masimo is concurrently filing public versions, with confidential portions
`
`redacted, of its Patent Owner Preliminary Response and Exhibits 2002, 2051, and
`
`2082.
`
`Patent Owner also proposes, and moves for entry of, a modified version of the
`
`Board’s Default Protective Order as Appendix A.
`
`I.
`
`INTRODUCTION
`
`Masimo’s POPR,
`
`in part,
`
`relies on secondary considerations of
`
`nonobviousness related to its rainbow® sensors. For support, Masimo’s POPR
`
`includes its proprietary and highly sensitive documents including technical
`
`documents detailing the research, design, structure, and functionality of Masimo’s
`
`rainbow® sensors and devices. Masimo’s POPR also includes confidential financial
`
`documents on Masimo’s sales of the rainbow® sensors.
`
`Masimo relied on most of these documents in the ITC Investigation involving
`
`Apple and the ’127 patent. In the ITC Investigation, the Administrative Law Judge
`
`entered a protective order providing strong protection of these documents. EX2083.
`
`
`
`That protective order provided
`
`for a “CONFIDENTIAL BUSINESS
`
`INFORMATION, SUBJECT TO PROTECTIVE ORDER” (“CBI”) designation.
`
`Masimo and Apple also negotiated and stipulated to a supplemental protective order
`
`that addressed source code and a prosecution bar. EX2084.
`
`Masimo designated most of the documents at issue in this Motion under the
`
`CBI designation in the ITC investigation. With that designation Apple’s outside
`
`counsel in the ITC, but not its in-house counsel, had access to these documents.
`
`Masimo seeks a protective order here with the same level of protection that the
`
`parties already operated under during the ITC Investigation.
`
`II.
`
`DOCUMENTS TO BE SEALED
`
`Masimo requests the following technical documents be sealed:
`
`Exhibit 2002 is the Declaration of named inventor Mohamed Diab. The
`
`declaration tracks testimony that Diab gave in deposition and at the hearing in the
`
`ITC investigation. Paragraphs 19-27, 37-42, 47, 48, and 71-90 of this declaration
`
`contain information pertaining to Masimo’s research, development, and production
`
`work related to the subject matter of the ’127 patent and patented products. This
`
`testimony has never been made public.
`
`Exhibit 2003 are plots from computer simulations that Diab performed. Diab
`
`performed the simulations while researching and developing the subject matter of
`
`
`
`the ’127 patent and rainbow® products. These computer simulations have never
`
`been made public.
`
`Exhibits 2004 and 2017 are Masimo internal PowerPoint Presentations. These
`
`exhibits contain information pertaining to Masimo’s research and development work
`
`related to the subject matter of the ’127 patent and/or rainbow® products, These
`
`presentations have never been made public.
`
`Exhibit 2006, 2007, 2009, 2010, 2012, 2013, 2014, 2015, 2020, 2027, 2032,
`
`2033 are Masimo engineering drawings and technical specifications containing
`
`detailed information about rainbow sensors®, including structure, components,
`
`materials used, dimensions, and functionality. These documents are marked with
`
`internal corporate confidentiality designations. This information has never been
`
`made public.
`
`Exhibit 2016 is an internal Masimo CAD drawing showing an expanded view
`
`of, and additional detail related to, the substrate of some rainbow® products. This
`
`drawing has never been made public.
`
`Exhibit 2018 is a technical data sheet containing technical details about an
`
`adhesive used in the rainbow® products. These technical details of the rainbow®
`
`sensors’ adhesive have not been made public.
`
`
`
`Exhibits 2019 and 2021 are photographs showing internal parts and structure
`
`of rainbow® sensors that are not publicly viewable. Masimo produced these
`
`photographs internally and they have not been made public.
`
`Exhibit 2028 is a collection of testing data plots showing results of internal
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`Masimo sensor characterization tests conducted to verify the operability of the
`
`rainbow® products. The plots have not been made public.
`
`Exhibit 2031 is Diab’s confidential research folder containing an internal
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`Masimo technical report authored by the named inventors and marked with an
`
`internal corporate confidentiality designation. This exhibit contains information
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`pertaining to Masimo’s research and development work related to the subject matter
`
`of the ’127 patent and rainbow® products. The research folder has not been made
`
`public.
`
`Exhibit 2051 is a declaration of Masimo’s technical expert, Jack Goldberg.
`
`Paragraphs 28-32 of Mr. Goldberg’s declaration include information from the
`
`confidential testimony of Mr. Diab and Exhibit 2003. This information has not been
`
`made public.
`
`Exhibits 2057 and 2058 are Mr. Goldberg’s claim charts detailing analysis
`
`comparing the rainbow® products to the claims of the ’127 patents. The charts
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`heavily rely on the confidential exhibits listed herein. This information has not been
`
`made public.
`
`
`
`Exhibit 2081 is a declaration of Micah Young, Masimo’s Chief Financial
`
`Officer. Paragraph 9 of the declaration contains a summary of confidential financial
`
`data in Exhibit 2082. Exhibit 2082 is a spreadsheet showing detailed financial data
`
`regarding sales of the rainbow® products. The financial data is extracted from
`
`Masimo’s internal financial database. This information has not been made public.
`
`III. The Proposed Protective Order
`
`Masimo proposed protective order (Appendix A) modifies the PTAB default
`
`protective order with certain provision from the ITC protective order. For example,
`
`Masimo proposes a confidential designation with essentially the same scope as the
`
`ITC Investigation’s CBI designation. The CBI definition in the ITC investigation
`
`is:
`
`information which concerns or relates to the trade secrets,
`processes, operations, style of work, or apparatus, or to the
`production,
`sales,
`shipments, purchases,
`transfers,
`identification of customers, inventories, amount or source
`of any income, profits, losses, or expenditures of any
`person,
`firm, partnership,
`corporation, or other
`organization, or other information of commercial value,
`the disclosure of which is likely to have the effect of either
`(i) impairing the Commission’s ability to obtain such
`information as is necessary to perform its statutory
`functions; or (ii) causing substantial harm
`to
`the
`competitive position of the person, firm, partnership,
`corporation, or other organization from which the
`information was obtained, unless the Commission is
`required by law to disclose such information.
`
`
`
`CITE. Masimo proposes substituting “PTAB” for “Commission” in the definition
`
`of CBI. Masimo also proposes accessibility restrictions to CBI information
`
`commensurate with that in the ITC investigation.
`
`IV. MOTION TO SEAL LEGAL STANDARD
`
`“There is a strong public policy for making all information filed in a quasi-
`
`judicial administrative proceeding open to the public.” Garmin Int’l v. Cuozzo Speed
`
`Techs., LLC, IPR2012–00001, slip op. at 1–2 (PTAB Mar. 14, 2013) (Paper 34).
`
`The record for an inter partes review shall be made available to the public, except
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`as otherwise ordered on a motion to seal. 35 U.S.C. § 326(a)(1); 37 C.F.R. § 42.14.
`
`The documents and information that are the subject of the motion to seal shall be
`
`treated as sealed until the motion is decided. Id.
`
`In determining whether to grant a Motion to Seal, the Board must find “good
`
`cause” and “strike a balance between the public’s interest in maintaining a complete
`
`and understandable file history and the parties’ interest in protecting truly sensitive
`
`information.” 37 C.F.R. § 42.54(a); Consolidated Trial Practice Guide (November
`
`2019) at 19 see also Argentum Pharms. LLC v. Alcon Res., Ltd., IPR2017-01053,
`
`Paper 27 at 3–4 (PTAB Jan. 19, 2018) (Informative) (describing the “good cause”
`
`standard). As described in the Consolidated Trial Practice Guide, the Board
`
`identifies confidential information in a manner “consistent with Federal Rule of
`
`
`
`Civil Procedure 26(c)(1)(G), which provides for protective orders for trade secret or
`
`other confidential research, development, or commercial information.”
`
`The moving party bears the burden of showing that the relief requested should
`
`be granted. 37 C.F.R. § 42.20(c). That includes showing that the information is truly
`
`confidential, and that such confidentiality outweighs the strong public interest in
`
`having an open record. See Argentum, Paper 27 at 3–4. A party moving to seal has
`
`the burden of showing that:
`
`(1) the information sought to be sealed is truly confidential, (2) a
`
`concrete harm would result upon public disclosure, (3) there exists a
`
`genuine need to rely on the specific information sought to be sealed,
`
`and (4) on balance, an interest in maintaining confidentiality outweighs
`
`the strong public interest in having an open record.
`
`Id. These factors support granting Masimo’s motion to seal.
`
`V. GOOD CAUSE EXISTS TO SEAL
`
`First, the information sought to be sealed is “truly confidential.” Masimo has
`
`not publicly disclosed the information it requests to be sealed. Moreover, the
`
`information that was disclosed in the ITC investigation was disclosed as CBI under
`
`the ITC protective order.
`
`Second, “concrete harm” to Masimo would result if the documents were
`
`accessible to Apple or the public. Broad unprotected disclosure of this information
`
`would provide the public at-large with direct insight into Patent Owner’s closely
`
`
`
`held technological advancements and strategies. Such access would severely hinder
`
`Patent Owner’s ability to compete in the market. Confidential information such as
`
`this is precisely the type of information to be protected pursuant to 37 C.F.R. §
`
`42.54(a)(7).
`
`Third, Masimo has a “genuine need” to rely on the documents in this
`
`proceeding. Masimo asserts that commercial success and industry praise of its
`
`rainbow® sensors are secondary considerations of non-obviousness supporting
`
`patentability of the challenged claims of the ’127 patent. The documents are
`
`essential for showing that the rainbow® sensors embody the claimed invention and
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`that there is a nexus between the commercial success and industry praise of the
`
`rainbow® sensors and the ‘127 claimed invention. Apple knew of these arguments
`
`and evidence from the ITC Investigation but chose not to address them in its Petition.
`
`Fourth, the prejudicial effect that disclosure would have on Masimo far
`
`outweighs the public’s interest in accessing this information for the purposes of the
`
`patentability of the challenged claims in this proceeding. Masimo has a strong
`
`interest in protecting its intellectual property by asserting commercial success and
`
`industry praise of its rainbow® sensors to support non-obviousness of the challenged
`
`claims of the ’127 patent. Moreover, Masimo will submit a redacted version of its
`
`Patent Owner Preliminary Response, which appropriately balances the public’s
`
`
`
`interest in having an open record with Masimo’s interest in protecting its confidential
`
`information.
`
`VI. CERTIFICATION OF CONFERENCE WITH OPPOSING PARTY
`PURSUANT TO 37 C.F.R. § 42.54
`
`Masimo certifies pursuant to 37 C.F.R. § 42.54(a) that it contacted Apple’s
`
`counsel regarding this Motion to Seal and for Entry of a Protective Order on
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`November 2, 2022. Apple responded it would need time to consider the issues
`
`before agreeing to meet and confer, which it expected it could do next week. Apple
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`indicated it opposes the motion and requested that Masimo provide the email
`
`exchange to the Board. See EX2085.
`
`VII. CONCLUSION
`
`For the reasons stated above, Masimo respectfully requests that the Board
`
`grant this Motion to Seal and for Entry of a Protective Order.
`
`Respectfully submitted,
`
`KNOBBE, MARTENS, OLSON & BEAR, LLP
`
`
`
`/Ted M. Cannon/
`Ted M. Cannon (Reg. No. 55,036)
`Customer No. 64,735
`
`
`Attorney for Patent Owner
`Masimo Corporation
`
`
`Dated: November 4, 2022
`
`
`
`
`
`
`
`
`
`APPENDIX A
`
`PROTECTIVE ORDER
`
`This protective order governs the treatment and filing of confidential information,
`
`including documents and testimony.
`
`1.
`
`Confidential information shall be clearly marked “CONFIDENTIAL
`
`BUSINESS INFORMATION, SUBJECT TO PROTECTIVE ORDER.”
`
`2.
`
`Confidential information is information which concerns or relates to
`
`the trade secrets, processes, operations, style of work, or apparatus, or to the
`
`production, sales, shipments, purchases, transfers, identification of customers,
`
`inventories, amount or source of any income, profits, losses, or expenditures of
`
`any person, firm, partnership, corporation, or other organization, or other
`
`information of commercial value, the disclosure of which is likely to have the
`
`effect of either (i) impairing the PTAB's ability to obtain such information as is
`
`necessary to perform its statutory functions; or (ii) causing substantial harm to the
`
`competitive position of the person, firm, partnership, corporation, or other
`
`organization from which the information was obtained, unless the PTAB is
`
`required by law to disclose such information.
`
`3.
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`Access to confidential information is limited to the following
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`individuals who have executed the acknowledgment appended to this order:
`
`
`
`A. Outside Counsel. Outside counsel of record for a party in the
`
`proceeding.
`
`B.
`
`Experts. Retained experts of a party in the proceeding who further
`
`certify in the Acknowledgement that they are not a competitor to any
`
`party, or a consultant for, or employed by, such a competitor with
`
`respect to the subject matter of the proceeding.
`
`No less than 10 days prior to the initial disclosure to an expert of any confidential
`
`information, the party proposing to use such expert shall submit in writing the name
`
`of such expert and his or her educational and detailed employment history to the
`
`supplier. If the producing party objects to the disclosure of such confidential
`
`business information to such expert as inconsistent with the language or intent of
`
`this order or on other grounds, it shall notify the other party in writing of its objection
`
`and the grounds therefore prior to the initial disclosure. If the dispute is not resolved
`
`on an informal basis within ten days of receipt of such notice of objections, the party
`
`seeking access to the confidential information shall arrange for a conference call
`
`with the PTAB to resolve the dispute. Absent an order from the PTAB, the expert
`
`shall not have access to the confidential information.
`
`C.
`
` Support Personnel. Administrative assistants, clerical staff, court
`
`reporters and other support personnel of the foregoing persons who are
`
`reasonably necessary to assist those persons in the proceeding shall not
`
`
`
`be required to sign an Acknowledgement, but shall be informed of the
`
`terms and requirements of the Protective Order by the person they are
`
`supporting who receives confidential information.
`
`D.
`
`The Office. Employees and representatives of the United States Patent
`
`and Trademark Office who have a need for access to the confidential
`
`information shall have such access without the requirement to sign an
`
`Acknowledgement. Such employees and representatives shall include
`
`the Director, members of the Board and their clerical staff, other
`
`support personnel, court reporters, and other persons acting on behalf
`
`of the Office.
`
`4.
`
`Prosecution and Development Bar.
`
`A.
`
`“Relevant Technology” means technology related to non-invasive
`
`monitoring of pulse oximetry, total hemoglobin, oxygen content,
`
`carboxyhemoglobin, and/or methemoglobin.
`
`B. Unless otherwise permitted in writing between the parties, any
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`individual who personally receives from the other party, any material
`
`showing or describing the technical functionality of the other party’s
`
`products
`
`designated
`
`as
`
`CONFIDENTIAL
`
`BUSINESS
`
`INFORMATION SUBJECT TO PROTECTIVE ORDER under this
`
`Protective Order shall not prepare, prosecute, supervise, advise,
`
`
`
`counsel, or assist in the preparation or prosecution of any patent
`
`application seeking a patent on behalf of the party receiving the
`
`material or its acquirer, successor, or predecessor in the Relevant
`
`Technology during the pendency of this proceeding and for two years
`
`after final termination of this proceeding or, alternatively, for two years
`
`after the time the individual person(s) formally withdraws from the
`
`proceeding. In addition, any such person is prohibited from having any
`
`involvement in the prosecution of any patent, patent application or re-
`
`examination in the Relevant Technology that was filed, or that claims
`
`priority from any application that was filed, for up to one year
`
`following the final termination of this proceeding (including any
`
`appeals). To avoid any doubt, “prosecution” as used in this paragraph
`
`does not include representing or advising a Party before a domestic or
`
`foreign agency in connection with a reissue, ex parte reexamination,
`
`inter partes review, opposition, cancelation, or similar proceeding;
`
`though in connection with any such agency proceeding involving the
`
`patent-at-issue , outside counsel of a party receiving confidential
`
`information shall not: (i) participate in the preparation, prosecution,
`
`supervision, advice, counsel, or assistance of any amended claims; (ii)
`
`reveal a confidential information to any prosecuting reexamination
`
`
`
`counsel or agent; or (iii) use a the other party’s confidential
`
`information for any purpose prohibited by this Protective Order. The
`
`applicability of this provision is to be determined on an individual-by-
`
`individual basis such that an individual attorney who has not received
`
`confidential information is not restricted from undertaking any
`
`activities by virtue of this provision even if said individual attorney is
`
`employed by or works for the same firm or organization as an
`
`individual who has received such material.
`
`C. Unless otherwise permitted in writing between Supplying Party and
`
`Receiving Party, any expert retained on behalf of a party who is to be
`
`given access to any material from another party showing or describing
`
`the technical functionality of products produced by another party must
`
`agree in writing not to be involved in creating, developing, or
`
`modifying, for commercial use (which, for the avoidance of doubt,
`
`does not include academic research which is not for industry), any
`
`Relevant Technology from the time of first receipt of such confidential
`
`material through one year after the date the expert formally withdraws
`
`from the Protective Order. For avoidance of doubt, during periods in
`
`which the individual person(s) has ceased to have possession of such
`
`
`
`material or any documents or notes reflecting such material, this
`
`section shall not apply.
`
`5.
`
`Persons receiving confidential information shall use reasonable
`
`efforts to maintain the confidentiality of the information, including:
`
`A. Maintaining such information in a secure location to which persons not
`
`authorized to receive the information shall not have access;
`
`B. Otherwise using reasonable efforts to maintain the confidentiality of
`
`the information, which efforts shall be no less rigorous than those the
`
`recipient uses to maintain the confidentiality of information not
`
`received from the disclosing party;
`
`C.
`
`Ensuring that support personnel of the recipient who have access to the
`
`confidential information understand and abide by the obligation to
`
`maintain the confidentiality of information received that is designated
`
`as confidential; and
`
`D.
`
`Limiting the copying of confidential information to a reasonable
`
`number of copies needed for conduct of the proceeding and
`
`maintaining a record of the locations of such copies.
`
`6.
`
`Persons receiving confidential information shall use the following
`
`procedures to maintain the confidentiality of the information:
`
`
`
`A. Documents and Information Filed With the Board.
`
`(i)
`
`A party may file documents or information with the Board along with
`
`a Motion to Seal. The Motion to Seal should provide a non-confidential
`
`description of the nature of the confidential information that is under seal, and
`
`set forth the reasons why the information is confidential and should not be
`
`made available to the public. A party may challenge the confidentiality of the
`
`information by opposing the Motion to Seal. The documents or information
`
`shall remain under seal unless the Board determines that some or all of it does
`
`not qualify for confidential treatment.
`
`(ii) Where confidentiality is alleged as to some but not all of the
`
`information submitted to the Board, the submitting party shall file confidential
`
`and non-confidential versions of its submission, together with a Motion to
`
`Seal the confidential version setting forth the reasons why the information
`
`redacted from the non-confidential version is confidential and should not be
`
`made available to the public. A party may challenge the confidentiality of the
`
`information by opposing the Motion to Seal. The non-confidential version of
`
`the submission shall clearly indicate the locations of information that has been
`
`redacted. The confidential version of the submission shall be filed under seal.
`
`The redacted information shall remain under seal unless the Board determines
`
`that some or all of the redacted information does not qualify for confidential
`
`
`
`treatment.
`
`B. Documents and
`
`Information Exchanged Among
`
`the Parties.
`
`Documents (including deposition transcripts) and other information
`
`designated as confidential that are disclosed to another party during
`
`discovery or other proceedings before the Board shall be clearly
`
`marked as “CONFIDENTIAL BUSINESS
`
`INFORMATION,
`
`SUBJECT TO PROTECTIVE ORDER” and shall be produced in a
`
`manner that maintains its confidentiality.
`
`7. Within 60 days after the final disposition of this action, including the
`
`exhaustion of all appeals and motions, each party receiving confidential
`
`information must return, or certify the destruction of, all copies of the confidential
`
`information to the producing party.
`
`8.
`
` Standard Acknowledgement of Protective Order. Exhibit A may be
`
`used to acknowledge a protective order and gain access to information covered by
`
`the protective order.
`
`
`
`
`
`
`
`VIII. Acknowledgment for Access to Protective Order Material
`
`Exhibit A
`
`
`
`I
`
`, affirm that I have read the Protective Order; that I will abide by its
`
`terms; that I will use the confidential information only in connection with this
`
`proceeding and for no other purpose; that I will only allow access to support staff
`
`who are reasonably necessary to assist me in this proceeding; that prior to any
`
`disclosure to such support staff I informed or will inform them of the requirements
`
`of the Protective Order; that I am personally responsible for the requirements of the
`
`terms of the Protective Order and I agree to submit to the jurisdiction of the Office
`
`and the United States District Court for the Eastern District of Virginia for purposes
`
`of enforcing the terms of the Protective Order and providing remedies for its breach.
`
`[Signature]
`
`
`
`
`
`
`
`
`
`
`
`CERTIFICATE OF SERVICE
`
`
`
`I hereby certify that, pursuant to 37 C.F.R. § 42.6(e) and with the agreement
`
`of counsel for Petitioner, a true and correct copy of PATENT OWNER MOTION
`
`TO SEAL AND FOR ENTRY OF A PROTECTIVE ORDER is being served
`
`electronically on November 4, 2022, to the e-mail addresses shown below:
`
`W. Karl Renner
`Fish & Richardson P.C.
`3200 RBC Plaza
`60 South Sixth Street
`Minneapolis, MN 55402
`Tel: 612-335-5070
`Fax: 612-288-9696
`Email: IPR50095-0046IP1@fr.com
`
`Daniel D. Smith
`Andrew B. Patrick
`Nicholas Stephens
`3200 RBC Plaza
`60 South Sixth Street
`Minneapolis, MN 55402
`Tel: 202-783-5070
`Fax:877-769-7945Email:
`PTABInbound@fr.com
`
`Dated: November 4, 2022
`
`
`
`
`
`/Ted M. Cannon/
`Ted M. Cannon (Reg. No. 55,036)
`Customer No. 64,735
`
`Attorney for Patent Owner
`Masimo Corporation
`
`
`
`
`