IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`Stephen Barbour
`In re Patent of:
`
`11,574,372 Attorney Docket No.: 54598-0001PS1
`U.S. Patent No.:
`February 7, 2023
`
`Issue Date:
`Appl. Serial No.: 16/484,728
`
`Filing Date:
`January 6, 2020
`
`Title:
`BLOCKCHAIN MINE AT OIL OR GAS FACILITY
`
`
`
`Mail Stop Patent Board
`Patent Trial and Appeal Board
`U.S. Patent and Trademark Office
`P.O. Box 1450
`Alexandria, VA 22313-1450
`
`
`
`PETITION FOR POST-GRANT REVIEW OF UNITED STATES PATENT
`NO. 11,574,372 PURSUANT TO 37 C.F.R. §42.200 et seq.
`
`
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`TABLE OF CONTENTS
`
`I. 
`II. 
`
`INTRODUCTION ........................................................................................... 1 
`REQUIREMENTS FOR PGR ......................................................................... 2 
`A.  Grounds for Standing and PGR Eligibility ............................................... 2 
`B.  Challenge and Relief Requested ............................................................... 2 
`C.  CLAIM CONSTRUCTION ...................................................................... 4 
`1. 
`“blockchain mining device” ............................................................ 4 
`2. 
`“mining processor” .......................................................................... 6 
`3. 
`“a continuous flow of combustible gas” ......................................... 6 
`4. 
`“sales gas line” ................................................................................ 7 
`D.  Level of Ordinary Skill in the Art ............................................................. 7 
`III.  THE ’372 PATENT ......................................................................................... 8 
`A.  Brief Description of the ‘372 Patent Specification ................................... 8 
`B.  Prosecution History of the ’372 Patent ................................................... 10 
`IV.  THE CHALLENGED CLAIMS ARE UNPATENTABLE UNDER 35
`U.S.C § 103 .................................................................................................... 12 
`A.  GROUND 1 (Dickerson and CryptoKube, in view of Szmigielski and
`Kheterpal) ............................................................................................... 12 
`1.  Overview of Dickerson ................................................................. 12 
`2.  Overview of the CryptoKube system ............................................ 15 
`3.  Overview of Szmigielski ............................................................... 16 
`4.  Overview of Kheterpal .................................................................. 17 
`5. 
`The combination of Dickerson and CryptoKube .......................... 19 
`6.  Analysis ......................................................................................... 21 
`B.  GROUND 2 (Dickerson, CryptoKube, and Belady-989 in view of
`Szmigielski and Kheterpal) ..................................................................... 48 
`1.  Overview of Belady-989 ............................................................... 48 
`2. 
`The combination of Dickerson, CryptoKube, and Belady-989 .... 50 
`3.  Analysis ......................................................................................... 52 
`C.  GROUND 3 (Dickerson, CryptoKube, Belady-989, and Boot in view of
`Szmigielski and Kheterpal) ..................................................................... 64 
`1.  Overview of Boot .......................................................................... 64 
`2. 
`The combination of Dickerson, CryptoKube, Belady-989, and
`Boot ............................................................................................... 67 
`3.  Analysis ......................................................................................... 68 
`D.  GROUND 4 (MAGS + Polivka miner) .................................................. 77 
`
`i
`
`

`

`V. 
`
`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`1.  Overview of Pioneer Energy’s MAGS system ............................. 77 
`2.  Overview of the Polivka miner ..................................................... 79 
`3. 
`The combination of MAGS and Polivka ....................................... 81 
`4.  Analysis ......................................................................................... 83 
`E.  GROUND 5 ............................................................................................ 99 
`1. 
`The combination of MAGS, Polivka, and Belady-989 ................. 99 
`2.  Analysis .......................................................................................100 
`THE CHALLENGED CLAIMS ARE UNPATENTABLE UNDER 35
`U.S.C § 101 ..................................................................................................112 
`A.  The ’372 Patent Is Ineligibly Abstract ..................................................114 
`B.  The ’372 Patent Contains No “Inventive Concept” to Transform the
`Abstract Idea into a Patent-Eligible Application. .................................116 
`C.  Claim 1 Is Representative of the Entire ’372 Patent. ...........................118 
`VI.  PTAB DISCRETION SHOULD NOT PRECLUDE INSTITUTION ........119 
`A.  Factor 1: Either Party May Request Stay .............................................119 
`B.  Factor 2: The Trial Schedule is Unclear ...............................................119 
`C.  Factor 3: Petitioner’s Diligence and Investment in PGR Outweighs the
`Parties’ Minimal Investment in Litigation ............................................120 
`D.  Factor 4: The Petition’s Grounds Are Materially Different From Any
`That Might Be Raised in Litigation ......................................................120 
`E.  Factor 5: Party Overlap .........................................................................120 
`F.  Factor 6: The Merits of this Petition Strongly Favor Institution ..........120 
`G.  Considerations Implicated by 35 U.S.C. § 325(d) ................................121 
`1. 
`The Art and Arguments Presented are Not the Same or
`Substantially the Same as those Previously Presented to the Office
` .....................................................................................................121 
`The Office Erred in a Manner Material to the Patentability of the
`Challenged Claims ......................................................................123 
`VII.  CONCLUSION ............................................................................................124 
`VIII.  PAYMENT OF FEES .................................................................................124 
`IX.  MANDATORY NOTICES UNDER 37 C.F.R § 42.8(a)(1) .......................124 
`A.  Real Party-In-Interest Under 37 C.F.R. § 42.8(b)(1) ............................124 
`B.  Related Matters Under 37 C.F.R. § 42.8(b)(2) .....................................124 
`A.  Lead And Back-Up Counsel Under 37 C.F.R. § 42.8(b)(3) .................124 
`B.  Service Information ..............................................................................125 
`
`
`2. 
`
`
`
`ii
`
`

`

`EX1001
`
`
`EX1002
`
`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`LIST OF EXHIBITS
`
`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 Michael Nikolaou
`
`Declaration and Curriculum Vitae of Vernon Kasdorf
`
`
`EX1003
`
`EX1004
`
`EX1005 WO2015123257A1 (Dickerson)
`
`EX1006
`
`CryptoKube brochure from the WaybackMachine dated March 5,
`2016 (“CryptoKube Brochure”)
`
`CryptoKube Bitcoin Mining Data Center Tour(CC) (“CryptoKube
`Video-Part1”)
`
`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. WO2015072989 (“Belady-989”)
`
`U.S. Patent No. 9,394,770 (“Boot”)
`
`
`EX1007
`
`
`EX1008
`
`EX1009
`
`
`EX1010
`
`EX1011
`
`EX1012
`
`EX1013
`
`
`
`Sanders, Gerald, and Johnson Space Center. "Gas Conversion
`Systems Reclaim Fuel for Industry." (“Sanders”)
`
`US Patent Publication No. 2015/0368566 (“Young”)
`
`
`EX1014
`
`EX1015 Mining Container ~100kW by Polivka GmbH (“Bitcointalk Forum
`Post”)
`
`iii
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`Polivka Mining Container Setup on Vimeo (“Polivka Video”)
`
`Declaration of June Ann Munford
`
`U.S. Patent No. 6,161,386 (“Lokhandwala”)
`
`U.S. Patent Publication No. 2014/0096837 (“Belady-837”)
`
`EX1016 Mining with free natural gas _ r_Bitcoin (“Reddit”)
`
`EX1017
`
`EX1018 U.S. Patent Publication No. 2018/0109541 (“Gleifchauf”)
`
`EX1019
`
`EX1020
`
`EX1021
`
`EX1022
`
`“Crypto you can mine from a home computer,” Brave New Coin
`(bravenewcoin.com) (July 18, 2023)
`
`
`EX1023
`
`CryptoKube Bitcoin Mining Data Center Tour(CC) (“CryptoKube
`Video-Part2”)
`
`
`EX1024-1099 [RESERVED]
`
`EX1100 Complaint for Patent Infringement, Upstream Data Inc. v. Crusoe
`Energy Systems LLC, Case No. 1:23-cv-01252 (D. Colo. May 18,
`2023)
`
`iv
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`CLAIM LISTING
`
`Limitation
`[1pre]
`
`[1a]
`
`[1b]
`[1c]
`[1c_i]
`
`[1c_ii]
`
`[1c_iii]
`
`[1c_iv]
`[1c_v]
`
`[1c_vi]
`
`[2.0]
`
`[3.0]
`
`[4.0]
`
`[7.0]
`
`Claim language
`
`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.
`The system of claim 1 isolated from a sales gas line and an external
`electrical power grid.
`The system of claim 1 in which: the source of combustible gas and
`the facility comprise a remote well selected from a group consisting
`of a remote oil or gas well; and the remote well is connected to
`produce the continuous flow of combustible gas to power the
`generator.
`The system of claim 3 further comprising a combustion engine
`connected to the source of combustible gas and connected to drive
`the generator.
`The system of claim 1 in which: the facility comprises a unit
`selected from a group consisting of an oil storage or processing
`unit; the source of combustible gas comprises the unit, which has a
`gas outlet connected to supply combustible gas to operate the
`
`i
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`generator; and the unit is connected to receive oil produced from a
`remote oil well.
`The system of claim 1 in which the generator and blockchain
`mining devices are located adjacent to the facility.
`The system of claim 1 in which the facility comprises a plurality of
`remote wells selected from a group consisting of remote oil or gas
`wells, and one or both of the following conditions are satisfied: the
`plurality of remote wells are located on a multi-well pad; or the
`plurality of remote wells include a satellite well.
`The system of claim 1 in which the system is configured to
`modulate a power load level exerted by the blockchain mining
`devices on the generator, by increasing or decreasing the mining
`activity of the mining processor.
`The system of claim 10 in which the system is configured to
`modulate the power load level by selecting one or more actions
`from a group of actions consisting of increasing or decreasing a
`maximum number of mining processors that are engaged in mining
`transactions.
`The system of claim 10 in which the system is configured to
`modulate the power load level in response to variations in a
`production rate of combustible gas from the hydrocarbon
`production well, storage, or processing facility.
`The system of claim 10 in which: a production rate of combustible
`gas from the hydrocarbon production well, storage, or processing
`facility varies between a daily minimum production rate and a daily
`maximum production rate; the controller is set to limit the power
`load level to above a power level producible by the generator when
`the production rate is at the daily minimum production rate; and a
`backup source, selected from a group consisting of fuel or
`electricity, is connected make up a shortfall in fuel or electricity,
`respectively, required to supply the blockchain mining devices with
`the power load level.
`The system of claim 1 in which a controller is connected to operate
`a cooling system to maintain the blockchain mining devices within
`a predetermined operating range of temperature.
`The system of claim 1 in which the blockchain mining devices are
`housed in a portable enclosure that is structured to one or more of
`form a skid or be mounted on a trailer.
`
`[8.0]
`
`[9.0]
`
`[10.0]
`
`[11.0]
`
`[12.0]
`
`[15.0]
`
`[16.0]
`
`[17.0]
`
`ii
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`[18.0]
`
`[19.0]
`
`[20.0]
`
`[21.0]
`
`[22.0]
`
`[23.0]
`
`The system of claim 17 in which the portable enclosure comprises a
`generator driven by an engine, which is connected to the source of
`combustible gas.
`The system of any claim 18 in which the engine comprises a
`turbine.
`The system of claim 17 in which the portable enclosure comprises
`an intermodal transport container.
`The system of claim 17 in which the portable enclosure has the
`form of a box with walls, a top, and a base, with one or more access
`doors formed in the walls.
`The system of claim 1 further comprising a combustible gas
`disposal device, at the facility, the combustible gas disposal device
`being connected to receive combustible gas from the source of
`combustible gas.
`The system of claim 22 further comprising a valve connected
`upstream of the generator to receive the continuous flow of gas
`from the source of combustible gas, and selectively supply the
`continuous flow of gas to the generator, the combustible gas
`disposal device, or both the generator and the combustible gas
`disposal device, to selectively divert the continuous flow of gas to
`the combustible gas disposal device, the generator, or both the
`generator and the combustible gas disposal device, respectively.
`[24pre] 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, and
`operating blockchain mining devices located at the 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 power the generator;
`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;
`
`[24d_i]
`
`[24a]
`
`[24b]
`
`[24c]
`
`[24d_ii]
`
`iii
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`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.
`The method of claim 24 further comprising, prior to using the
`source of combustible gas: one or both disconnecting or diverting
`the source of combustible gas from a combustible gas disposal
`device at the facility; and connecting the source of combustible gas
`to operate the blockchain mining devices.
`
`The method of claim 25 in which the combustible gas disposal
`device comprises one or more of a flare, a vent to the atmosphere,
`an incinerator, or a burner.
`The method of claim 24 further comprising: connecting the source
`of combustible gas to operate the blockchain mining devices; and
`diverting gas from a combustible gas disposal device to operate the
`blockchain mining devices.
`The method of claim 24 in which the facility is selected from a
`group consisting of an oil or gas well that is isolated from a sales
`gas line and an external electrical power grid.
`The method of claim 24 in which the source of combustible gas is a
`remote well selected from a group consisting of a remote oil or gas
`well.
`The method of claim 24 in which producing further comprises
`supplying combustible gas to a combustion engine that is connected
`to drive the generator.
`The method of claim 29 further comprising operating the
`blockchain mining devices to: mine transactions with the
`blockchain mining devices; and communicate wirelessly through
`the internet to communicate with a blockchain database.
`The method of claim 34 further comprising modulating a power
`load level exerted by the blockchain mining devices on the
`generator, by selecting an action from a group of actions consisting
`
`[24d_iii]
`
`[24d_iv]
`[24d_v]
`
`[24d_vi]
`
`[25.0]
`
`[26.0]
`
`[27.0]
`
`[28.0]
`
`[29.0]
`
`[30.0]
`
`[34.0]
`
`[35.0]
`
`iv
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`of increasing or decreasing, a mining activity of the blockchain
`mining devices.
`The method of claim 35 in which: modulating comprises
`modulating the power load level by increasing or decreasing a
`maximum number of mining processors that are engaged in mining
`transactions.
`The method of claim 36 in which modulating comprises modulating
`the power load level in response to variations in a production rate of
`combustible gas from the hydrocarbon production well, storage, or
`processing facility.
`The method of claim 35 in which: a production rate of combustible
`gas from the hydrocarbon production well, storage, or processing
`facility varies between a daily minimum production rate and a daily
`maximum production rate; modulating comprises limiting the
`power load level to above a power level produced by the generator
`when the production rate is at the daily minimum production rate;
`and supplying from a backup source, which is selected from a
`group consisting of a backup fuel or electricity source a shortfall in
`fuel or electricity, respectively, required to supply the blockchain
`mining devices with the power load level.
`
`
`
`[36.0]
`
`[37.0]
`
`[40.0]
`
`
`
`
`v
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`TABLE OF AUTHORITIES
`
`Cases 
`142 S. Ct. 1113 (2022) ...........................................................................................107
`Advanced Bionics, LLC v. MED-EL Elektromedizinische Geräte GmbH,
`IPR20109-01469, Paper 6 at 8 (PTAB Feb. 13, 2020) ......................................116
`Alice Corp. Pty. v. CLS Bank Int'l, 573 U.S. 208, 216 (2014) ..................... 107, 113
`Am. Axle & Mfg., Inc. v. Neapco Holdings LLC, 967 F.3d 1285, 1296 (Fed. Cir.
`2020) ................................................................................................. 107, 108, 112
`Apple Inc. v. Fintiv, Inc., IPR2020-00019, Paper 11, 5-6 (P.T.A.B. May 13, 2020)
` ................................................................................................................... 114, 115
`Apple Inc. v. Seven Networks LLC et al., IPR2020-00156, Paper 10 at 11-12
`(P.T.A.B. June 15, 2020) ...................................................................................115
`Bilski v. Kappos, 561 U.S. 593, 612 (2010) ...........................................................113
`Content Extraction & Transmission LLC v. Wells Fargo Bank, Nat. Ass'n, 776 F.3d
`1343, 1348 (Fed. Cir. 2014) ...............................................................................112
`Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1336 (Fed. Cir. 2016) ...............108
`Mayo Collaborative Services v. Prometheus Laboratories, Inc., 132 S.Ct. 1289,
`1297 (2012) ....................................................................................... 108, 110, 111
`Phillips v. AWH Corp., 415 F.3d 1303 (Fed. Cir. 2005) ........................................... 4
`Sand Revolution II, LLC v. Cont’l Intermodal Group – Trucking LLC, IPR2019-
`01393, Paper 24 at 7 (P.T.A.B. June 16, 2020) ........................................ 114, 115
`Sanderling Mgmt. Ltd. v. Snap Inc., 65 F.4th 698, 704-05 (Fed. Cir. 2023) 108, 112
`SAP Am., Inc. v. Versata Dev. Grp., Inc., CBM2012-00001, 29 (Trial Decision,
`Jan. 9, 2013) .......................................................................................................111
`Solutran, Inc. v. Elavon, Inc., 931 F.3d 1161, 1167 (Fed. Cir. 2019) ...................108
`Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709, 715 (Fed. Cir. 2014) ......... 108, 109
`Upstream Data Inc. v. Crusoe Energy Systems LLC, Case No. 1:23-cv-01252 (D.
`Colo. May 18, 2023) ..........................................................................................119
`Wellman v. Eastman Chem. Co., 642 F.3d (Fed. Cir. 2011) ..................................... 4
`Yu v. Apple Inc., 1 F.4th 1040, 1043 (Fed. Cir. 2021) .................. 107, 109, 110, 112
`Statutes 
`§ 103 .......................................................................................................................115
`112 .............................................................................................................................. 4
`35 U.S.C. § 325(d) ........................................................................................ 116, 118
`35 U.S.C. §§ 101 ........................................................................................................ 4
`Regulations 
`37 C.F.R. §42.100 ...................................................................................................... 4
`
`vi
`
`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`Crusoe Energy Systems, LLC (“Petitioner”) petitions for Post-Grant Review
`
`(“PGR”) of claims 1-4, 7-12, 15-30, 34-37, and 40 (“Challenged Claims”) of U.S.
`
`Patent 11,574,372 (“’372 patent”), assigned to Upstream Data Inc. (“Upstream” or
`
`“Patent Owner”).
`
`INTRODUCTION
`I.
`The Challenged Claims are directed to systems and methods that include two
`
`main components: (1) a generator that runs on a combustible gas, and (2) a
`
`blockchain mining device connected to the generator. Of course, by Upstream’s
`
`earliest possible priority date (February 8, 2017), neither blockchain mining
`
`devices nor generators were new.1 Indeed, as described below, Upstream conceded
`
`as much during prosecution. [EX1002, 222-223]. The alleged novelty in
`
`Upstream’s “invention” was co-locating the two devices at an oil facility, in order
`
`to utilize combustible gas produced at the facility (for example, stranded natural
`
`gas that—if allowed by regulation—might otherwise be vented into the atmosphere
`
`or burned via flaring).
`
`As described in this Petition, not only had this been done before, but a
`
`person of skill in the art, in 2017, would have been motivated to co-locate a
`
`
`1 For the purposes of this proceeding, Petitioner does not concede that Patent
`
`Owner is entitled to this priority date.
`
`1
`
`

`

`blockchain mining device (e.g., for mining Bitcoin-brand digital currency)2 at a
`
`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`source of inexpensive power, and would have done so with a reasonable
`
`expectation of success of arriving at the Challenged Claims.
`
`Crusoe respectfully submits that PGR should be instituted, and that the
`
`Challenged Claims should be canceled as unpatentable.
`
`II. REQUIREMENTS FOR PGR
`A. Grounds for Standing and PGR Eligibility
`Petitioner certifies that the ‘372 Patent is available for PGR. Petitioner is not
`
`barred or estopped from requesting review, has not filed a civil action regarding
`
`the ‘372 patent, and this Petition is being filed within nine months of the ‘372
`
`patent’s issuance. 37 CFR 42.201-202.
`
`B. Challenge and Relief Requested
`Petitioner requests PGR of the Challenged Claims for patent ineligible and
`
`obvious, as explained below. Dr. Michael Nickolaou and Mr. Vernon Kasdorf
`
`provide supporting explanations in their supporting declarations cited throughout
`
`this petition. EX1003 and EX1004.
`
`
`2 “Bitcoin” is the most popular of many available digital currency (aka
`
`cryptocurrency) brands, each of which uses a public ledger distributed across many
`
`different computing devices (i.e., a blockchain) via a network such as the Internet.
`
`2
`
`

`

`Ground
`
`Claims
`
`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`Invalidity Basis
`
`1
`
`2
`
`3
`
`4
`
`5
`
`1-4, 8, 16-30, 34 Obvious over Dickerson and CryptoKube, in
`view of Szmigielski and Kheterpal
`
`1-4, 8, 10-12, 15-
`30, 34-37, 40
`
`Obvious over Dickerson, CryptoKube, and
`Belady-989, in view of Szmigielski and
`Kheterpal
`
`1-4, 7-12, 15-30,
`34-37, 40
`
`Obvious over Dickerson, CryptoKube, Belady-
`989, and Boot, in view of Szmigielski and
`Kheterpal
`
`1-4, 8, 16-22, 24-
`30, 34
`
`Obvious over MAGS and Polivka, in view
`Szmigielski and Kheterpal
`
`1-4, 8, 10-12, 15-
`30, 34-37, 40
`
`Obvious over MAGS, Polivka, and Belady-989,
`in view of Szmigielski and Kheterpal
`
`The earliest claimed priority date of the ‘372 patent is February 8, 2017.
`
`Each of the prior art references applied in the above-listed Grounds qualifies as
`
`prior art as shown below:
`
`Reference
`Dickerson
`CryptoKube
`brochure
`CryptoKube
`video
`Szmigielski
`Kheterpal
`
`Dates
`August 20, 2015 (publication)
`March 5, 2016 (publication)
`
`Prior Art Under
`35 U.S.C. § 102(a)(1)
`35 U.S.C. § 102(a)(1)
`
`December 18, 2014 (publication)
`
`35 U.S.C. § 102(a)(1)
`
`February 2016 (publication)
`May 5, 2016 (publication)
`
`35 U.S.C. § 102(a)(1)
`35 U.S.C. § 102(a)(1)
`
`3
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`

`

`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
`
`Dates
`Reference
`Belady-989 May 21, 2015 (publication)
`Boot
`July 19, 2016 (issue)
`Sanders
`2015 (publication)
`Young
`December 24, 2015 (publication)
`Bitcointalk
`December 18, 2015 (publication)
`forum post
`Polivka video February 9, 2015 (publication)
`
`
`
`
`Prior Art Under
`35 U.S.C. § 102(a)(1)
`35 U.S.C. § 102(a)(1)
`35 U.S.C. § 102(a)(1)
`35 U.S.C. § 102(a)(1)
`35 U.S.C. § 102(a)(1)
`
`35 U.S.C. § 102(a)(1)
`
`C. CLAIM CONSTRUCTION
`All claim terms should be construed according to the Phillips standard.
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`Phillips, 415 F.3d 1303; 37 C.F.R. §42.100. Besides the specific constructions
`
`described below, no formal claim constructions are presently necessary since
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`“claim terms need only be construed to the extent necessary to resolve the
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`controversy.” Wellman, 642 F.3d at 1361.
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`Petitioner reserves the right to respond to any constructions offered by
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`Upstream or adopted by the Board in accordance with due process. Furthermore,
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`Petitioner does not concede that the Challenged Claims satisfy all statutory
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`requirements, including those under 35 U.S.C. §§ 101 and 112.
`
`1.
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`“blockchain mining device”
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`The term “blockchain mining device” should be construed as “any
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`computing device that is capable of performing blockchain mining without regard
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`4
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`to processor speed or power.” [EX1004, 49-50]. The ‘372 patent explains that “[a]
`
`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
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`blockchain is a form of database, which may be saved as a distributed ledger in a
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`network of nodes,” where each node “maintains a continuously-growing list of
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`records called blocks.” [EX1001, 11:46-47]. The nodes 122 are said to be
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`“electronic devices 126, for example desktop computers, laptop computers, tablet
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`computers, cellular telephones, servers, or other suitable devices.” [EX1001,
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`14:30-33].
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`The ‘372 patent further explains that “mining” refers to the “computational
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`review process performed on each block of data in a blockchain” required to
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`“maintain[]a blockchain database.” [EX1001, 13:5-7]. Importantly, in order for a
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`node 122 (computing device) to operate as a miner with respect to a blockchain, it
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`must simply include “mining circuitry 130 … to perform data mining operations.”
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`[EX1001, 14:44-48]. Unsurprisingly, the ‘372 patent admits that such “mining
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`circuitry” may simply be “an integrated circuit chip” (i.e., a processor) with
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`“various mining circuitry examples includ[ing] CPU (central processing unit),
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`GPU (graphics processing unit), FPGA (Field-Programmable Gate Array), and
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`ASIC (application specific integrated circuit).” [EX1001, 14:61-63; 17:12-15]. In
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`other words, no special purpose hardware is required to mine blockchain
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`transactions. Indeed, several brands of digital currencies still exist to this day that
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`can be profitably mined using a standard computer. For example, the website
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`5
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`Brave New Coin reports that, although Bitcoin-brand3 digital currency can no
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`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
`
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`longer be profitably mined with a standard PC, there still exists other brands of
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`“[c]rypto you can mine from a home computer in 2023.” EX1022.
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`2.
` “mining processor”
`The term “mining processor” should be construed as “any processor that is
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`capable of performing blockchain mining without regard to processor speed or
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`power.” [EX1004, 51]. See discussion regarding “blockchain mining device”
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`above.
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`3.
`“a continuous flow of combustible gas”
`The term “a continuous flow of combustible gas” should be construed as “a
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`flow of combustible gas that is continuous for at least a time period (e.g., an hour,
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`a day, a week, a month, or longer).” [EX1003, 54]. This construction is supported
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`by the ’372 patent specification, which states that the load may be limited to a
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`power level producible by the generator “for a period of time of eight, twelve,
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`twenty-four, or more hours.” [EX1001, 18:58-67]. A POSITA would have
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`understood that the gas supply from any given oil filed is limited, and will
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`eventually dry up. [EX1003, 54].
`
`
`3 Notably, the claims of the ‘372 patent are not limited to Bitcoin-brand digital
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`currency.
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`6
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`Attorney Docket No. 54598-0001PS1
`PGR of U.S. Patent No. 11,574,372
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`4.
`“sales gas line”
`The term “sales gas line” should be construed as “a pipeline for long-
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`distance transportation of sales gas meeting sales-gas specifications from a
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`hydrocarbon production, storage, or processing facility to a customer connected to
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`the pipeline.” [EX1003, 55-56]. This construction is supported by the ’372 patent
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`specification, which clearly sets out the meaning of this term: “A sales gas line
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`may be a pipeline of more than ten km of length, in some cases more than fifty, a
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`hundred, or two hundred, kilometers in length, and connecting between an oil and
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`gas site and travelling to an end user, a processing site, or a distribution site.”
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`[EX1001, 7:29-33, 7:1-34]. Moreover, “[r]aw natural gas may require processing
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`before it can be sold via a sales gas line.” [EX1001, 7:1-2]. Specifically, “gas
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`treating facilities must be designed to convert a particular raw gas mixture into a
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`sales gas that meets the sales-gas specifications,” which “may vary by
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`jurisdiction.” [EX1001, 7:20-28].
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`D. Level of Ordinary Skill in the Art
`A POSITA would have a degree in chemical engineering, petroleum
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`engineering, process engineering, mechanical engineering, or a similar field with
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`1-2 years of experience in designing power generation systems, Blockchain mining
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`systems, or other comparable hands-on experience. [EX1003, 19]. Alternatively, a
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`person having 3-5 years of experience in the Blockchain mining industry would
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`7
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`also qualify as a POSITA. Id. Additional education could substitute for
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`Attorney Docket No. 54598-0001PS1
`PG