`
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`
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`
`In re Patent of:
`Stephen Barbour
`U.S. Patent No.:
`11/574,372 Attorney Docket No.: 54598-0001PS1
`Issue Date:
`February 7, 2023
`
`Appl. Serial No.:
`16/484,728
`
`Filing Date:
`January 6, 2020
`
`Title:
`BLOCKCHAIN MINE AT OIL OR GAS FACILITY
`
`
`
`
`DECLARATION OF VERNON KASDORF
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`CRUSOE-1004
`
`1
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`
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`I, Vernon Kasdorf, declare as follows:
`I.
`ASSIGNMENT
`1.
`I have been retained on behalf of Crusoe Energy Systems, LLC. (“Crusoe” or
`
`“Petitioner”) to offer technical opinions related to U.S. Patent No. 11/574,372 (“The ’372 patent”)
`
`(EX1001). I understand that Crusoe is requesting the Patent Trial and Appeal Board (“PTAB” or
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`“Board”) to institute a post-grant review (“PGR”) proceeding of the ’372 patent.
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`2.
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`I have been asked to provide my independent analysis of the ’372 patent in light of
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`the prior art cited in this declaration. Crusoe has specifically asked for my analysis from the
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`perspective of a POSITA in the bitcoin mining industry. To the extent this declaration provides
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`opinions on subject matter related to the gas and oil industry, I am relying on the opinions of Dr.
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`Michael Nikolau (EX1003). To that end, I am relying on Dr. Nikolau’s review and analysis of
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`Dickerson, Belady, Boot, and the MAGS System – which are all identified as prior art herein.
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`3.
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`I am not and never have been, an employee of Crusoe. I received no compensation
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`for this declaration beyond my normal hourly compensation based on my time actually spent
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`analyzing the ’372 patent, the prior art cited below, and issues related thereto, and I will not receive
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`any added compensation based on the outcome of this PGR or other proceeding involving the ’372
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`patent.
`
`II.
`
`QUALIFICATIONS
`4.
`My name is Vernon Kasdorf. I am the CEO of KubeData Systems Inc. and have
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`held that position since 2013.
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`5.
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`I have a Bachelor’s Degree in business administration from Trinity Western
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`University.
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`6.
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`I have extensive experience in building industrial cryptocurrency mining data
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`centers, including data centers for mining Bitcoin. I have over 25 years of experience in the IT
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`2
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`sector, with my career heavily focused on mining within the oil, gas, mineral, and cryptocurrency
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`industries.
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`7.
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`KubeData Systems Inc., my company, primarily, provides senior, strategic IT
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`consulting services to mining companies, IoT companies, and large Enterprise organizations. I was
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`also the owner and partner in KubeData Systems Inc. from 2013 to present.
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`8.
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`My company developed and commercialized the CryptoKube mobile bitcoin miner
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`system, to address the demand for an industrial cryptocurrency mining mobile data center. It was
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`also our first 100% free-cooled data center. KubeData Systems Inc. designed and built three
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`generations of CryptoKube mining data centers, servicing the Canadian and United States market.
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`9.
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`I have provided IT Strategic Consulting to many companies, including Goldcorp
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`(the world’s largest gold miner).
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`10.
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`I am fully familiar with the CryptoKube brochure dated March 5, 2016
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`(“CryptoKube brochure”) and CryptoKube Bitcoin mining Data center tour(CC) (“CryptoKube
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`video”). The CryptoKube brochure is EX1006, and the CryptoKube video is EX1007. I am able
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`to authenticate both and declare that both the CryptoKube brochure and the CryptoKube video
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`were published before February 8, 2017 – which I understand to be the earliest claimed priority
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`date of the ’372 patent.
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`11.
`
`I have personal knowledge that the CryptoKube brochure was originally published
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`(distributed online, at trade show, and via emails to customers) in 2014 and the CryptoKube video
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`was published on YouTube on December 18, 2014.
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`12. My curriculum vitae, which includes a complete list of my publications, is included
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`as Appendix A.
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`13.
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`I am being compensated at a rate of $350 per hour for my work in this case. This
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`3
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`compensation is not contingent on the nature of my findings or the outcome of this litigation.
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`14.
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`I am over the age of 18 and am competent to write this declaration. I have personal
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`knowledge, or have developed knowledge, of the technologies discussed in this declaration based
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`upon my education, training, or experience with the matters discussed herein.
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`III.
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`SUMMARY OF CONCLUSIONS FORMED
`15.
`This Declaration explains the conclusions that I have formed based on my analysis.
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`To summarize those conclusions:
`
`
`
`Ground 1: Based upon my knowledge and experience and my review of the prior
`
`art in this declaration, and Dr. Nikolaou’s Declaration (EX1003), I believe that
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`claims 1-4, 8, 16-30, and 34 of the ’372 patent are rendered obvious by Dickerson
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`and CryptoKube, in view of Szmigielski and Kheterpal.
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`
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`Ground 2: Based upon my knowledge and experience and my review of the prior
`
`art in this declaration, and Dr. Nikolaou’s Declaration (EX1003), I believe that
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`claims 1-4, 8, 10-12, 15-30, 34-37, and 40 of the ’372 patent are rendered obvious
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`by Dickerson, CryptoKube, and Belady-989, in view of Szmigielski and Kheterpal.
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`
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`Ground 3: Based upon my knowledge and experience and my review of the prior
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`art in this declaration, and Dr. Nikolaou’s Declaration (EX1003), I believe that
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`claims 1-4, 7-12, 15-30, 34-37, and 40 of the ’372 patent are rendered obvious by
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`Dickerson, CryptoKube, Belady-989, and Boot, in view of Szmigielski and
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`Kheterpal.
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`
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`Ground 4: Based upon my knowledge and experience and my review of the prior
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`art in this declaration, and Dr. Nikolaou’s Declaration (EX1003), I believe that
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`claims 1-4, 8, 16-30, and 34 of the ’372 patent are rendered obvious by Pioneer
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`
`
`4
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`
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`Energy’s MAGS system and the Polivka miner, in view Szmigielski and Kheterpal.
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`
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`Ground 5: Based upon my knowledge and experience and my review of the prior
`
`art in this declaration, and Dr. Nikolaou’s Declaration (EX1003), I believe that
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`claims 1-4, 8, 10-12, 15-30, 34-37, and 40 are rendered obvious by Pioneer
`
`Energy’s MAGS system, the Polivka miner, and Belady-989, in view of
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`Szmigielski and Kheterpal.
`
`IV.
`
`PERSON OF ORDINARY SKILL IN THE ART
`16.
`In my opinion, a person of ordinary skill in the art of the ’372 patent would have a
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`degree in chemical engineering, petroleum engineering, process engineering, mechanical
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`engineering, or a similar field with 1-2 years of experience in designing power generation systems,
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`Bitcoin mining systems, or other comparable hands-on experience. Alternatively, a person having
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`3-5 years of experience in the Bitcoin mining industry would also qualify as a POSITA. Additional
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`education could substitute for professional experience, or vice versa.
`
`V.
`
`LEGAL PRINCIPLES
`17.
`I am not a lawyer and I will not provide any legal opinions in this PGR. Although
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`I am not a lawyer, I have been advised that certain legal standards are to be applied by technical
`
`experts in forming opinions regarding the meaning and validity of patent claims.
`
`A.
`
`Claim Construction
`
`18.
`
`I understand that claim terms are generally given their plain and ordinary meaning
`
`in light of the patent’s specification and file history as understood by a person of ordinary skill in
`
`the art at the time of the purported invention. In that regard, I understand that the best indicator of
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`claim meaning is its usage in the context of the patent specification as understood by a POSITA.
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`I further understand that the words of the claims should be given their plain meaning unless that
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`meaning is inconsistent with the patent specification or the patent’s history of examination before
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`5
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`
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`the Patent Office. I also understand that the words of the claims should be interpreted as they
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`would have been interpreted by a POSITA at the time of the invention was made (not today).
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`B.
`
`Obviousness
`
`19.
`
`I understand that a patent claim is invalid if the claimed invention would have been
`
`obvious to a person of ordinary skill in the field at the time of the purported invention, which is
`
`often considered the time the application was filed. Thus, even if all of the claim limitations are
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`not found in a single prior art reference that anticipates the claim, the claim can still be invalid. I
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`also understand that a POSITA is presumed to have been aware of all pertinent prior art at the time
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`of the alleged invention.
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`20.
`
`I understand that, to obtain a patent, a claimed invention must have, as of the
`
`priority date, been nonobvious in view of the prior art in the field. I understand that an invention
`
`is obvious when the differences between the subject matter sought to be patented and the prior art
`
`are such that the subject matter as a whole would have been obvious at the time the invention was
`
`made to a person having ordinary skill in the art.
`
`21.
`
`I understand that, to prove that prior art or a combination of prior art renders a
`
`patent obvious it is necessary to: (1) identify the particular references that, singly or in
`
`combination, make the patent obvious; (2) specifically identify which elements of the patent claim
`
`appear in each of the asserted references; and (3) explain a motivation, teaching, need, market
`
`pressure or other legitimate reason that would have inspired a person of ordinary skill in the art to
`
`combine prior art references to solve a problem.
`
`22.
`
`I also understand that certain objective indicia can be important evidence regarding
`
`whether a patent is obvious or nonobvious. Such indicia include:
`
`
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`Commercial success of products covered by the patent claims;
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`6
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`A long-felt need for the invention;
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`Failed attempts by others to make the invention;
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`Copying of the invention by others in the field;
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`Unexpected results achieved by the invention as compared to the closest
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`prior art;
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`Praise of the invention by the infringer or others in the field;
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`The taking of licenses under the patent by others;
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`Expressions of surprise by experts and those skilled in the art at the making
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`of the invention; and
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`The patentee proceeded contrary to the accepted wisdom of the prior art.
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`23.
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`To the extent these factors have been brought to my attention, if at all, I have taken
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`them into consideration in rendering my opinions and conclusions. As discussed above and
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`detailed in my curriculum vitae, I was very familiar with the bitcoin mining industry, bitcoin miner
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`systems, cryptocurrency mining mobile data centers, and related equipment and technologies and
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`was aware of the state of the art as of the earliest claimed priority date of the ’372 patent. For the
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`purposes of this declaration, I have been asked to assume that the earliest priority date of the ’372
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`patent is February 8, 2017. I believe that I would qualify as understanding the knowledge and skill
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`of a POSITA as of that date, and I have a sufficient level of knowledge, experience, and expertise
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`to provide an expert opinion in the field of the ’372 patent.
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`VI. MATERIALS CONSIDERED
`24.
`In forming my opinion, I considered the following documents:
`
`EX1001
`EX1002
`
`EX1003
`
`U.S. Patent No. 11,574,372 to Stephen Barbour et al. (“the ’372 Patent”)
`Excerpts from the Prosecution History of the ’372 Patent (“the
`Prosecution History”)
`Declaration and Curriculum Vitae of Dr. Michael Nikolaou
`
`
`
`7
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`
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`
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`EX1005
`EX1006
`
`EX1007
`
`EX1008
`EX1009
`
`EX1010
`EX1011
`EX1012
`EX1013
`
`EX1014
`EX1015
`
`EX1016
`EX1017
`EX1018
`EX1019
`EX1020
`EX1021
`EX1022
`
`EX1023
`
`EX1100
`
`WO2015123257A1 (“Dickerson”)
`CryptoKube brochure from the WaybackMachine dated March 5, 2016
`(“CryptoKube brochure”)
` CryptoKube Bitcoin mining Data center tour(CC) (“CryptoKube
`video”)
`CryptoKube Bitcoin mining Data center tour transcript
`Szmigielski, Albert. Bitcoin Essentials. Packt Publishing Ltd, 2016
`(“Szmigielski”)
`U.S. Patent Publication No. 2016/0125040 (“Kheterpal”)
`PCT Patent Publication No. 2015/072989 (“Belady-989”)
`U.S. Patent No. 9,394,770 (“Boot”)
`Sanders, Gerald, and Johnson Space Center. "Gas Conversion Systems
`Reclaim Fuel for Industry." (“Sanders”)
`US Patent Publication No. 2015/0368566 (“Young”)
`Mining Container ~100kW by Polivka GmbH (“Bitcointalk forum
`post”)
`Mining with free natural gas _ r_Bitcoin (“Reddit”)
`U.S. Patent Publication No. 2014/0096837 (“Belady-837”)
` U.S. Patent Publication No. 2018/0109541 (“Gleifchauf”)
`Polivka Mining Container Setup on Vimeo (“Polivka video”)
`Declaration of June Ann Munford
`U.S. Patent No. 6,161,386 (“Lokhandwala”)
`“Crypto you can mine from a home computer,” Brave New Coin
`(bravenewcoin.com) (July 18, 2023)
`CryptoKube Bitcoin mining Data center tour(CC) (“CryptoKube video-
`Part2”)
`Complaint for Patent Infringement, Upstream Data Inc. v. Crusoe
`Energy Systems LLC, Case No. 1:23-cv-01252 (D. Colo. May 18, 2023)
`
`
`In addition to the documents and materials cited in this declaration, I also relied on my knowledge,
`education, skills, experience, and training in forming my opinions.
`VII. BACKGROUND – BITCOIN/BLOCKCHAIN MINING
`25.
`The following paragraphs regarding Bitcoin mining are based on prior art to the
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`’372 patent. As stated above, for the purposes of this declaration, I have been asked to assume that
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`the earliest priority date of the ’372 patent is February 8, 2017.
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`26.
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`The Bitcoin protocol defines a system in which the creation and distribution of the
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`bitcoin cryptocurrency is governed by consensus among a peer-to-peer network. EX1010, [0004].
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`The network maintains a public ledger (e.g., bitcoin database) in which new transactions are
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`8
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`verified and recorded by members of the network via cryptography. Id. The operations of verifying
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`and recording transactions of cryptocurrencies such as transactions in the bitcoin cryptocurrency
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`are sometimes referred to as mining, because completion of each mining operation typically
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`rewards the miner with newly created cryptocurrency (e.g., bitcoins). Id. Verified transactions and
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`newly created bitcoins are recorded in the public ledger. Id. The public ledger serves as an official
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`history of transactions. Id. The amount of cryptocurrency owned by any entity may be determined
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`from the public ledger. Id.
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`VIII. OVERVIEW OF THE ’372 PATENT
`27.
`The ’372 patent relates to “operating a blockchain mining device using natural gas
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`produced at a hydrocarbon production, storage, or processing site/facility.” EX1001, Abstract. By
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`way of background to its technology, the ’372 Patent explains that “[a]t remote oil and gas
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`facilities, excess natural gas is often wasted, for example vented to atmosphere or burned via
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`flaring.” EX1001, 1:11-13. Figures 1 and 2 are schematics illustrating systems for “powering a
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`blockchain [mining device (12)] at a remote oil well [14],” with a generator (28). EX1001, 5:53-
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`62; 8:35-48.
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`28.
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`Figure 1 (shown below) shows “a generator [28] retrofitted to a prime mover [24],
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`which operates a drivehead to pump oil up from the reservoir.” EX1001, 5:53-56. That is, in this
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`case, the blockchain mining device (12) is connected to a generator (28), which is retrofitted to a
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`prime mover.
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`9
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`’372 Patent, EX1001, Fig. 1
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`29.
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`Figure 2 (shown below) is similar to Figure 1, but this embodiment includes two
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`engines—one that (with a generator) powers the blockchain mining device (12), and one that
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`operates the drive head. See EX1001, 5:57-62.
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`10
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`’372 Patent, EX1001, Fig. 2
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`30.
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`Figure 3 (shown below) is a schematic illustrating another embodiment of a system
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`for powering a blockchain mine, in which “a generator and engine are connected to be powered
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`by combustible gas taken off of an oil storage unit to power the blockchain main.”
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`11
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`’372 Patent, EX1001, Fig. 3
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`
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`31.
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`Common among these three embodiments is that, in each case, a blockchain mining
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`device is connected to a generator that runs on combustible gas – in particular, natural gas at an
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`oil well or oil storage unit.
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`32.
`
`I understand that the ’372 patent lists Stephen Barbour as the inventor, Upstream
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`Data Inc. (“Upstream”) as the applicant and assignee, and has the title: “Blockchain Mine at Oil
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`or Gas Facility.” For purposes of this declaration, I have been asked to assume that February 8,
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`2017, the filing date of US provisional application No. 62/456,380, is the earliest possible priority
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`date for the ’372 patent.
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`33.
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`Generally, the ’372 patent discusses systems and methods for using a source
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`combustible gas to power bitcoin mining. I understand that in the related Complaint, Upstream
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`12
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`
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`has relied specifically on claims 1 and 2 of the ’372 patent.
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`IX. OVERVIEW OF THE PROSECUTION HISTORY
`34.
`The application that led to the ’372 patent was filed as U.S. Patent Application No.
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`16/484,728 on February 6, 2018. EX1002.
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`35.
`
`I understand that the ’372 patent was filed with 41 claim, two of which were
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`independent claims.
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`A system comprising:
`1.
`a source of combustible gas produced from an oil production, storage, or processing
`facility;
`a generator connected to the source of combustible gas; and
`a blockchain mining device connected to the generator.
`
`A method comprising using a source of combustible gas produced at a
`24.
`hydrocarbon production well, storage, or processing facility, to produce electricity
`to operate a blockchain mining device located at the hydrocarbon production well,
`storage, or processing facility, respectively.
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`EX1002, 686-691. I further understand that before examination, the claims were amended to
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`“remove all multiple dependencies and reduce excess claim fees.” EX1002, 543-550. Claims 1
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`and 24 were not amended.
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`36.
`
`I understand that on August 9, 2021, before any office actions had been mailed, a
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`third-party submission was made to cite a Reddit posting dated July 3, 2016. EX1002, 439-447.
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`According to the third-party submitter, the Reddit posting “discloses a source of combustible gas,
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`a generator that generate (sic) electricity from combustion of the gas, and a blockchain mining
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`device.” EX1002, 440.
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`37.
`
`I understand that the Office initiated and conducted an interview with the
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`Upstream’s representative on April 15, 2022, “to gain insight and a better understand (sic) the
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`claimed invention as well as the oil/natural gas industry as it applies to block chain mining.”
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`13
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`EX1002, 348. The Office concluded that the third-party submission “reads adequately on the
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`independent claims,” and suggested that “[m]oving forward, [] drafting independent claims that
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`clearly unite the combustible gas production elements and the block chain mining elements.”
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`EX1002, 348. With respect to the dependent claims, the Office indicated that “[a]llowable subject
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`matter may reside in dependent claims 12–18,” but that “further searching [would be] required.”
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`EX1002, 348. The Office’s initial search revealed little in the way of qualified prior art, but did
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`reveal Belady-837 (US20140096837A1). EX1002, 348.
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`38.
`
`I understand that on April 19, 2022, before Upstream amended the claims, the
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`Office mailed an Office Action. EX1002, 329-347. Claims 1 and 24, as well as dependent claims,
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`were rejected for obviousness over Belady-837 and Gleifchauf (US20180109541A1). EX1002,
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`336. No anticipation rejections were made, despite the Office having indicated in the April 15
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`interview that the Reddit Post reads on the independent claims.
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`39.
`
`I understand that, in making the obviousness rejection, the Office took the position
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`that Belady-837 discloses using a gas generator to power a data center (blockchain mining device),
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`and Gleifchauf discloses using servers for blockchain mining and verification. EX1002, 336-337.
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`According to the Office, it would have been obvious to combine Belady-837 and Gleifchauf
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`because Belady-837 discloses “data centers are being located in areas where natural resources,
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`from which electrical power can be derived, are abundant and can be obtained inexpensively. For
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`example, natural gas is a byproduct of oil drilling operations and is often considered a waste
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`byproduct since it cannot be economically captured and brought to the market.” EX1002, 336-337
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`(quoting EX1017, [0004]).
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`40.
`
`I understand that subsequent to receiving the obviousness rejection, Upstream
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`amended the independent claims to recite:
`
`
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`14
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`
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`A system comprising:
`1.
`a source of combustible gas produced from [[an oil]]a facility selected from a group
`consisting of a hydrocarbon production, storage, or processing facility;
`a generator connected to the source of combustible gas to receive a continuous flow
`of combustible gas to power the generator; and
`[[a]] blockchain mining devices connected to the generator;
`in which
`the blockchain mining devices each have a mining processor and are
`connected to a network interface;
`the network interface is connected to receive and transmit data through the
`internet to a network that stores or has access to a blockchain database;
`the mining processors are connected to the network interface and adapted
`to mine transactions associated with the blockchain database and to communicate
`with the blockchain database;
`the network is a peer-to-peer network;
`the blockchain database is a distributed database stored on plural nodes in
`the peer-to-peer network; and
`the blockchain database stores transactional information for a digital
`currency.
`
`24.
`
`A method comprising:
`Producing electricity using a generator and a source of combustible gas
`produced at a facility selected from the group consisting of a hydrocarbon
`production well, storage, or processing facility, to produce electricity to and
`operating[[e a]] blockchain mining devices located at the hydrocarbon production
`well, storage, or processing facility, respectively, using the electricity, in which:
`the generator is connected to the source of combustible gas, in which the
`facility is connected to produce a continuous flow of combustible gas to the
`generator;
`the blockchain mining devices [. . . ].1
`
`I understand that, to overcome the obviousness rejection, Upstream argued that its
`
`41.
`
`system uses “flare gas” as opposed to “sales gas.” EX1002, 222-223. I understand that Upstream
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`also argued that blockchain mining is different from traditional data-processing because it requires
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`more energy. EX1002, 222-223. Upstream argued that its “discovery amounts to a new use for
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`1 The remainder of the amendments to claim 24, with respect to the block chain mining devices, are identical to those
`made in claim 1. CRUSOE-1002 209-224.
`
`
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`15
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`
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`previously known individual components (a common precursor for patentability), and may provide
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`numerous benefits including the reduction of greenhouse gas emissions and capture of revenue
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`where gas disposal is otherwise a capital loss (for example paragraphs 33, 34, 48, and 73), EX1002,
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`223.
`
`42.
`
`I understand that on August 31, 2022, a notice of allowance was mailed. EX1002,
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`4-9. In the “Reasons for Allowance,” the Office indicated that:
`
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`I understand that the ’372 patent issued shortly after a Rule 312 amendment
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`43.
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`(amending claims 15, 16, 18, 31, 37, 38, 40 to recite “hydrocarbon production well, storage, or
`
`
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`16
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`
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`processing facility”). EX1002, 20-29.
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`44.
`
`I also understand that neither Dickerson, CryptoKube, Szmigielski, Kheterpal,
`
`Boot, Pioneer’s MAGS system, nor Polivka miner were considered by the Office. EX1002.
`
`X.
`
`THE CHALLENGED CLAIMS
`45.
`I understand that for purposes of this proceeding, Petitioner is challenging the
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`validity of claims 1-4, 7-12, 15-30, 34-37, and 40 of the ’372 patent.
`
`46.
`
`Claim 1 of the ’372 patent is representative of the challenged claims and is shown
`
`below:
`
`1. A system comprising:
`a source of combustible gas produced from a facility selected from a group
`consisting of a hydrocarbon production, storage, or processing facility;
`a generator connected to the source of combustible gas to receive a
`continuous flow of combustible gas to power the generator; and
`blockchain mining devices connected to the generator;
`in which:
`the blockchain mining devices each have a mining processor and are
`connected to a network interface;
`the network interface is connected to receive and transmit data
`through the internet to a network that stores or has access to a blockchain
`database;
`the mining processors are connected to the network interface and
`adapted to mine transactions associated with the blockchain database and to
`communicate with the blockchain database;
`the network is a peer-to-peer network;
`the blockchain database is a distributed database stored on plural
`nodes in the peer-to-peer network; and
`the blockchain database stores transactional information for a digital
`currency.
`
`XI. CLAIM CONSTRUCTION
`47.
`I understand that Petitioner reserves the right to assert in litigation that certain claim
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`constructions are proper and that certain terms are indefinite, and I do not concede, by providing
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`my opinions herein, that the challenged claims are of definite scope or properly described.
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`17
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`48.
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`For the purposes of this declaration, no formal claim constructions are presently
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`necessary, besides the specific constructions described below.
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`49.
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`The term “blockchain mining device” should be construed as “any computing
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`device that is capable of performing blockchain mining without regard to processor speed or
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`power.” The ‘372 patent explains that “[a] blockchain is a form of database, which may be saved
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`as a distributed ledger in a network of nodes,” where each node “maintains a continuously-growing
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`list of records called blocks.” [EX1001, 11:46-47]. The nodes 122 are said to be “electronic devices
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`126, for example desktop computers, laptop computers, tablet computers, cellular telephones,
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`servers, or other suitable devices.” [EX1001, 14:30-33].
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`50.
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`The ‘372 patent further explains that “mining” refers to the “computational review
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`process performed on each block of data in a blockchain” required to “maintain[]a blockchain
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`database.” [EX1001, 13:5-7]. Importantly, in order for a node 122 (computing device) to operate
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`as a miner with respect to a blockchain, it must simply include “mining circuitry 130 … to perform
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`data mining operations.” [EX1001, 14:44-48]. Unsurprisingly, the ‘372 patent admits that such
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`“mining circuitry” may simply be “an integrated circuit chip” (i.e., a processor) with “various
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`mining circuitry examples includ[ing] CPU (central processing unit), GPU (graphics processing
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`unit), FPGA (Field-Programmable Gate Array), and ASIC (application specific integrated
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`circuit).” [EX1001, 14:61-63; 17:12-15]. In other words, no special purpose hardware is required
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`to mine blockchain transactions. Indeed, several brands of cryptocurrencies (i.e., blockchains) still
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`exist to this day that can be profitably mined using a standard computer. For example, the website
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`Brave New Coin reports that, although Bitcoin-brand cryptocurrency can no longer be profitably
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`mined with a standard PC, there still exists other brands of “[c]rypto you can mine from a home
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`computer in 2023.” EX1022.
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`18
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`51.
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`The term “mining processor” should be construed as “any processor that is capable
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`of performing blockchain mining without regard to processor speed or power.” See discussion
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`regarding “blockchain mining device” above.
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`52.
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`The term “a continuous flow of combustible gas” should be construed as “a flow
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`of combustible gas that is continuous for at least a time period (e.g., an hour, a day, a week, a
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`month, or longer ).” For this construction, I relied on Dr. Michael Nikolaou.
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`53.
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`The term “sales gas line” should be construed as “a pipeline for long-distance
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`transportation of sales gas meeting sales-gas specifications from a hydrocarbon production,
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`storage, or processing facility to a customer connected to the pipeline.” For this construction, I
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`relied on Dr. Michael Nikolaou.
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`54.
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`I reserve the right to supplement my opinions if Patent Owner offers a construction
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`of any term in the ’372 patent.
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`XII. SUMMARY OF THE PRIOR ART
`A.
`Dickerson
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`55.
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`56.
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`I relied on Dr. Michael Nikolaou’s review of Dickerson in forming my opinions.
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`I understand that PCT Publication No. 2015/123,257 (“Dickerson”) has an
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`international publication date of August 20, 2015. [EX1005, Cover].
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`57.
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`I understand that Dickerson “relates generally to a mobile apparatus, system, and
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`method for processing and using raw natural gas that is normally flared at the site of oil and gas
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`field operation facilities.” [EX1005, [0002]].
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`58.
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`I understand that Dickerson describes a mobile power generation system that can
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`generate electricity using flare gas (raw natural gas that is to be flared) at an oil and gas production
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`facility. [EX1005, Abstract, [0002]]. Dickerson explains that “[g]as flared as a byproduct of oil
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`drilling in the Bakken Field releases millions of tons of carbon dioxide into the atmosphere every
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`19
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`year, causing considerable environmental concerns” and “a number of oil and gas field facilities
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`where gas is being flared rely on diesel-powered electrical generating units for electricity needed
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`to run the facilities.” [EX1005, [0003], [0004]].
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`59.
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`I understand that Dickerson discloses that it seeks to “reduce costs associated with
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`diesel-powered electrical generating units, to eliminate undesirable emissions generated by flaring
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`natural gas, and to reduce emissions from the generation of electricity used to operate oil and gas
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`field facilities, since electricity produced by gas engines results in fewer harmful emissions than
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`electricity produced by diesel-fuel engines.” [EX1005, [0010]].
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`60.
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`I understand that Dickerson’s system includes (1) one membrane separation unit
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`for separating useful fuel gas from raw natural gas produced at an oil or gas production facility,
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`(2) a gas engine that uses the fuel gas to generate electricity that is returned to the facility, and (3)
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`a control panel for operating the apparatus. [EX1005, [0005]]. FIG. 1 of Dickerson shows one
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`setup of its combined gas conditioning and power generation system. [EX1005, [0008]]. As shown
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`in FIG. 1, gas genset 102 includes a gas engine 110 and a generator 112 that is driven by the engine
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`110. [EX1005, [0026]].
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`20
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`Dickerson, EX1005, FIG. 1 (annotated)
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`61.
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`I understand that Dickerson further discloses that a chiller unit can be included to
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`remove natural gas liquids (NGLs) from the raw natural gas stream, and to further reduce the
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`flaring of raw natural gas. [EX1005, [0022]].
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`62.
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`I understand that Dickerson discloses that its mobile power generation system can
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`be delivered in a 40-foot-long ISO container. [EX1005, [0014]]. Dickerson explains that the
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`container and its contents together define a self-contained, mobile flare gas processing unit that
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`provides a user with electrical power output but requires only feed gas input from the user.
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`[EX1005, [0026]]. Dickerson envisions using the generated electricity for both local consumption
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`and for export. [EX1005, [0039]].
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`B.
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`CryptoKube
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`21
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`63.
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`The CryptoKube system is a commercialized industrial Bitcoin mining system that
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`can be easily shipped to any location that has cheap power and can mine bitcoin. [EX1006, 1-4].
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`The CryptoKube is built inside an ISO shipping container and is filled with spondooliestech SP31
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`OR SP35 servers. [EX1006, 4]. The CryptoKube uses fans (fresh air cooling) to move large
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`volumes of air through the data center to cool the servers and remove the hot air exhaust. [EX1006,
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`1, 4].
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`64.
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`As shown in the CryptoKube video, the CryptoKube is built inside an ISO shipping
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`container with walls, a top, and a base, with an access door formed in the walls. CyptoKube can
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`run inside a large warehouse, outside in a parking lot, or in a server pod farm where the power is
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`cheapest. [EX1006, 1-4]; [EX1007, 0:01:08]. The CryptoKube video and CryptoKube brochure
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`were both published in 2014.
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`CryptoKube Video, EX1007, 0:01:08.
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`C.
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`Szmiegielski
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`22
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`65.
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`Szmigielski is a book titled “Bitcoin Essentials,” first published in February 2016,
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`where the author reviewed the mining of bitcoin—how new bitcoins are created and how
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`transactio