`Filed: August 24, 2015
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`
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`Filed on behalf of: Paragon BioTeck, Inc.
`By: Michael T. Rosato
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`Steven W. Parmelee
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`WILSON SONSINI GOODRICH & ROSATI
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`701 Fifth Avenue, Suite 5100
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`Seattle, WA 98104-7036
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`Tel.: 206-883-2529
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`Fax: 206-883-2699
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`Email: mrosato@wsgr.com
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`Email: sparmelee@wsgr.com
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`_____________________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________________________
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`ALTAIRE PHARMACEUTICALS, INC.,
`Petitioner,
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`v.
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`PARAGON BIOTECK, INC.,
`Patent Owner
`_____________________________
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`Case: PGR2015-00011
`Patent No. 8,859,623
`_____________________________
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`PATENT OWNER’S MOTION TO SEAL AND MOTION FOR ENTRY OF
`PROTECTIVE ORDER PURSUANT TO 37. C.F.R. § 42.14 AND § 42.54
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`
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`Case PGR2015-00011
`Patent 8,859,623
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`I. STATEMENT OF PRECISE RELIEF REQUESTED
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`Pursuant to 37 C.F.R. § 42.14, Patent Owner Paragon BioTeck, Inc.
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`(“Paragon” or “Patent Owner”) respectfully moves to seal Ex. 2004 filed
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`concurrently herewith Paragon’s Preliminary Response to Altaire Pharmaceuticals,
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`Inc.’s (“Altaire” or “Petitioner”) Petition for Post-Grant Review of U.S. Patent No.
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`8,859,623 (the “ ’623 Patent”). As detailed below, Ex. 2004 - “PROTECTIVE
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`ORDER MATERIAL - Paragon’s Response to Defendants’ Motion to Dismiss or
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`for Transfer of Venue” contains highly confidential and extremely sensitive
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`information related to financial matters concerning Paragon’s business that
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`Paragon has not and would not make publicly available.
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`Pursuant to 37 C.F.R. § 42.54, Paragon respectfully moves for entry of the
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`Default Protective Order set forth in the Office Patent Trial Practice Guide (Ex.
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`2012) submitted herewith Patent Owner’s Motion to Seal and Motion for Entry of
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`Default Protective Order. The Office Patent Trial Practice Guide, 77 Fed. Reg.
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`48756, 48771 (Aug. 14, 2012). Paragon submits Ex. 2012 concurrently herewith
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`Patent Owner’s Preliminary Response to Altaire Pharmaceuticals, Inc.’s Petition
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`for Post-Grant Review of the ’623 Patent.
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`II. GOOD CAUSE EXISTS FOR SEALING CONFIDENTIAL
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`INFORMATION
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`By default, the record of a proceeding is open and available for access by the
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`public. See 37 C.F.R. § 42.14. The Board must find “good cause” in deciding
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`whether to seal documents. Garmin v. Cuozzo, IPR2012-00001, Paper 36 at 3
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`Patent 8,859,623
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`(PTAB April 5, 2013). “The rules aim to strike a balance between the public’s
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`interest in maintaining a complete and understandable file history and the parties’
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`interest in protecting truly sensitive information.” The Office Patent Trial Practice
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`Guide, 77 Fed. Reg. 48756, 48760 (Aug. 14, 2012).
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`
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`The balance in this proceeding shifts towards maintaining confidentiality of
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`Paragon’s financial information. This information has nothing to do with the
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`patentability of the ’623 patent claims and rather involves Sawaya Aquebogue
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`LLC’s (“Sawaya Aquebogue”) status as an unnamed real party-in-interest to this
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`post grant review. For at least this reason, the public’s interest in access to
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`Ex. 2004 is significantly lessened. Garmin, at 8-9 (PTAB).
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`As described below, Paragon is submitting highly confidential financial
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`information that is not publicly available. Disclosure of this information would
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`significantly harm Paragon by, (1) violating a May 30, 2011 Agreement (“the
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`Agreement”) between Paragon and Altaire and, (2) jeopardizing Paragon’s
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`competitive position in the marketplace.
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`First, pursuant to the Agreement, “[t]he parties further acknowledge and
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`agree that any/all writings, documents, data and/or information that reveals the
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`financial data and business information relating to a party are the proprietary and
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`confidential information of such party, and may not be disclosed to any third party
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`without the written consent of said party.” (emphasis added). See Ex. 2001 at 9.1
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`Confidential Ex. 2004 is a document that reveals financial data and business
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`information relating to Paragon and Altaire. Filing Confidential Ex. 2004 under
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`seal is required by the terms of the Agreement.
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`Second, disclosure of the highly confidential information allows a direct
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`competitor, a current investor or potential investor, to access some of Paragon’s
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`sensitive financial data regarding business strategy. Access to such sensitive
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`financial information may allow a direct competitor an advantage over Paragon
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`and/or impact negotiations between Paragon and current or potential investors.
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`Filing Confidential Ex. 2004 under seal prevents Paragon from jeopardizing its
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`competitive position in the marketplace in order to support arguments that Sawaya
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`Aquebogue is a real party-in-interest in this proceeding and should have been
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`named in the petition.
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`
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`Paragon redacted only the specific information that it considers confidential
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`financial information, none of which is relied upon by Paragon to support
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`arguments made in Patent Owner’s Preliminary Response. See Table 1 infra. The
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`Board has previously maintained financial information under seal when the
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`moving party proposed reasonable redactions such that the thrust of the argument
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`1
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` Ex. 2001 is a copy of Assad Sawaya’s Declaration filed in the United States
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`District Court For the District of Oregon on March 23, 2015. A copy of a redacted
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`version of the Agreement was also included. See Ex. 2001 at 6-10.
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`or evidence can be reasonably understood from the redacted versions. Greene’s
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`Energy Grp., LLC, Inc. v. Oil States Energy Svs., LLC, IPR2014-00216, Paper 27
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`at pg. 5 (Sept. 23, 2014). None of Paragon’s arguments in Patent Owner’s
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`Preliminary Response rely on any of the aforementioned redacted information. As
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`such, there is little legitimate public interest favoring the disclosure of Paragon’s
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`highly confidential financial information. Accordingly, the public interest will not
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`be harmed by entry of the attached Default Protective Order or by filing the
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`Confidential Ex. 2004 under seal as “PROTECTIVE ORDER MATERIAL.”
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`TABLE 1 – PROPOSED SEALED PAPERS AND EXHIBITS
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`CONFIDENTIAL MATERIALS TO BE SEALED UNDER THE
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`DEFAULT PROTECTIVE ORDER
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`Exhibit
`No.
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`Exhibit Title
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`Portions With
`Confidential
`Information
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`Pg. 6, lns. 7-12
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`Pg. 10, lns. 9-10
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`PROTECTIVE ORDER MATERIAL -
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`Pg. 11, lns. 13-27
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`2004
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`Paragon’s Response to Defendants’ Motion
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`Pg. 12, lns. 1-6
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`to Dismiss or for Transfer of Venue
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`Pg. 14, lns. 22-24
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`Pg. 21, lns. 6-9;19-22
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`Pg. 22, lns. 8-10
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`III. CONFIDENTIAL INFORMATION IS NOT PUBLICLY AVAILABLE
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`Paragon certifies the information identified in Ex. 2004 and sought to be
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`sealed is not publicly available. In the aforementioned District Court case,
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`Petitioner’s counsel filed an unredacted version of the Agreement concurrently
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`with the Motion to Dismiss Paragon’s Complaint. The unredacted version was
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`promptly removed from public docket within days. Petitioner’s filing of the
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`unredacted version was a violation of the aforementioned Agreement.
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`IV. CERTIFICATION OF CONFERENCE WITH OPPOSING PARTY
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`PURSUANT TO 37 C.F.R. §42.54
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`
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`Paragon has in good faith attempted to confer with Petitioner’s counsel
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`regarding Patent Owner’s Motion to Seal and Motion for Protective Order.
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`Paragon contacted Petitioner and requested Petitioner’s consent to file the Ex. 2004
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`under seal and for consent to enter the Default Protective Order. Petitioner has not
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`responded to Paragon’s request.
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`V. PROPOSED PROTECTIVE ORDER PURSUANT TO 37 C.F.R.
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`§42.54
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`Paragon respectfully requests entry of the attached Default Protective Order
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`set forth in the Office Patent Trial Practice Guide, which is attached as Ex. 2012.2
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`2
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` The Office Patent Trial Practice Guide, 77 Fed. Reg. 48756, 48771 (Aug. 14,
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`2012).
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`-5-
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`Upon entry of the Protective Order, Patent Owner designates Ex. 2004 as
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`“PROTECTIVE ORDER MATERIAL.”
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`Case PGR2015-00011
`Patent 8,859,623
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`Respectfully submitted,
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`/ Michael T. Rosato /
`Michael T. Rosato, Lead Counsel
`Reg. No. 52,182
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`
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`Date: August 24, 2015
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`CERTIFICATE OF SERVICE
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`The undersigned certifies that the foregoing “PATENT OWNER’S
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`MOTION TO SEAL AND MOTION FOR PROTECTIVE ORDER” and Exhibits
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`2001 through 2015 were served on this 24th day of August, at the following
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`addresses of record for the subject patent:
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`Dipu A. Doshi
`Edward A. Meilman
`Jonathan W.S. England
`DICKSTEIN SHAPIRO LLP
`1825 Eye Street NW
`Washington, DC 20006
`Tel: (202)420-2604
`Fax: (202)420-2201
`Email: doshid@dicksteinshapiro.com
`Email: meilmane@dicksteinshapiro.com
`Email: englandj@dicksteinshapiro.com
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`Respectfully submitted,
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`/ Michael T. Rosato /
`Michael T. Rosato, Lead Counsel
`Reg. No. 52,182
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`Date: August 24, 2015