`
`
`
`
`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
`
`
`
`
`
`
`
`
`CRUSOE-1004
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`1
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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
`
`“Board”) to institute a post-grant review (“PGR”) proceeding of the ’372 patent.
`
`2.
`
`I have been asked to provide my independent analysis of the ’372 patent in light of
`
`the prior art cited in this declaration. Crusoe has specifically asked for my analysis from the
`
`perspective of a POSITA in the bitcoin mining industry. To the extent this declaration provides
`
`opinions on subject matter related to the gas and oil industry, I am relying on the opinions of Dr.
`
`Michael Nikolau (EX1003). To that end, I am relying on Dr. Nikolau’s review and analysis of
`
`Dickerson, Belady, Boot, and the MAGS System – which are all identified as prior art herein.
`
`3.
`
`I am not and never have been, an employee of Crusoe. I received no compensation
`
`for this declaration beyond my normal hourly compensation based on my time actually spent
`
`analyzing the ’372 patent, the prior art cited below, and issues related thereto, and I will not receive
`
`any added compensation based on the outcome of this PGR or other proceeding involving the ’372
`
`patent.
`
`II.
`
`QUALIFICATIONS
`4.
`My name is Vernon Kasdorf. I am the CEO of KubeData Systems Inc. and have
`
`held that position since 2013.
`
`5.
`
`I have a Bachelor’s Degree in business administration from Trinity Western
`
`University.
`
`6.
`
`I have extensive experience in building industrial cryptocurrency mining data
`
`centers, including data centers for mining Bitcoin. I have over 25 years of experience in the IT
`
`
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`sector, with my career heavily focused on mining within the oil, gas, mineral, and cryptocurrency
`
`industries.
`
`7.
`
`KubeData Systems Inc., my company, primarily, provides senior, strategic IT
`
`consulting services to mining companies, IoT companies, and large Enterprise organizations. I was
`
`also the owner and partner in KubeData Systems Inc. from 2013 to present.
`
`8.
`
`My company developed and commercialized the CryptoKube mobile bitcoin miner
`
`system, to address the demand for an industrial cryptocurrency mining mobile data center. It was
`
`also our first 100% free-cooled data center. KubeData Systems Inc. designed and built three
`
`generations of CryptoKube mining data centers, servicing the Canadian and United States market.
`
`9.
`
`I have provided IT Strategic Consulting to many companies, including Goldcorp
`
`(the world’s largest gold miner).
`
`10.
`
`I am fully familiar with the CryptoKube brochure dated March 5, 2016
`
`(“CryptoKube brochure”) and CryptoKube Bitcoin mining Data center tour(CC) (“CryptoKube
`
`video”). The CryptoKube brochure is EX1006, and the CryptoKube video is EX1007. I am able
`
`to authenticate both and declare that both the CryptoKube brochure and the CryptoKube video
`
`were published before February 8, 2017 – which I understand to be the earliest claimed priority
`
`date of the ’372 patent.
`
`11.
`
`I have personal knowledge that the CryptoKube brochure was originally published
`
`(distributed online, at trade show, and via emails to customers) in 2014 and the CryptoKube video
`
`was published on YouTube on December 18, 2014.
`
`12. My curriculum vitae, which includes a complete list of my publications, is included
`
`as Appendix A.
`
`13.
`
`I am being compensated at a rate of $350 per hour for my work in this case. This
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`
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`compensation is not contingent on the nature of my findings or the outcome of this litigation.
`
`14.
`
`I am over the age of 18 and am competent to write this declaration. I have personal
`
`knowledge, or have developed knowledge, of the technologies discussed in this declaration based
`
`upon my education, training, or experience with the matters discussed herein.
`
`III.
`
`SUMMARY OF CONCLUSIONS FORMED
`15.
`This Declaration explains the conclusions that I have formed based on my analysis.
`
`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
`
`claims 1-4, 8, 16-30, and 34 of the ’372 patent are rendered obvious by Dickerson
`
`and CryptoKube, in view of Szmigielski and Kheterpal.
`
`
`
`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
`
`claims 1-4, 8, 10-12, 15-30, 34-37, and 40 of the ’372 patent are rendered obvious
`
`by Dickerson, CryptoKube, and Belady-989, in view of Szmigielski and Kheterpal.
`
`
`
`Ground 3: 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
`
`claims 1-4, 7-12, 15-30, 34-37, and 40 of the ’372 patent are rendered obvious by
`
`Dickerson, CryptoKube, Belady-989, and Boot, in view of Szmigielski and
`
`Kheterpal.
`
`
`
`Ground 4: 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
`
`claims 1-4, 8, 16-30, and 34 of the ’372 patent are rendered obvious by Pioneer
`
`
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`Energy’s MAGS system and the Polivka miner, in view Szmigielski and Kheterpal.
`
`
`
`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
`
`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
`
`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
`
`degree in chemical engineering, petroleum engineering, process engineering, mechanical
`
`engineering, or a similar field with 1-2 years of experience in designing power generation systems,
`
`Bitcoin mining systems, or other comparable hands-on experience. Alternatively, a person having
`
`3-5 years of experience in the Bitcoin mining industry would also qualify as a POSITA. Additional
`
`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
`
`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
`
`claim meaning is its usage in the context of the patent specification as understood by a POSITA.
`
`I further understand that the words of the claims should be given their plain meaning unless that
`
`meaning is inconsistent with the patent specification or the patent’s history of examination before
`
`
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`the Patent Office. I also understand that the words of the claims should be interpreted as they
`
`would have been interpreted by a POSITA at the time of the invention was made (not today).
`
`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
`
`not found in a single prior art reference that anticipates the claim, the claim can still be invalid. I
`
`also understand that a POSITA is presumed to have been aware of all pertinent prior art at the time
`
`of the alleged invention.
`
`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:
`
`
`
`Commercial success of products covered by the patent claims;
`
`
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`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`A long-felt need for the invention;
`
`Failed attempts by others to make the invention;
`
`Copying of the invention by others in the field;
`
`Unexpected results achieved by the invention as compared to the closest
`
`prior art;
`
`Praise of the invention by the infringer or others in the field;
`
`The taking of licenses under the patent by others;
`
`Expressions of surprise by experts and those skilled in the art at the making
`
`of the invention; and
`
`The patentee proceeded contrary to the accepted wisdom of the prior art.
`
`23.
`
`To the extent these factors have been brought to my attention, if at all, I have taken
`
`them into consideration in rendering my opinions and conclusions. As discussed above and
`
`detailed in my curriculum vitae, I was very familiar with the bitcoin mining industry, bitcoin miner
`
`systems, cryptocurrency mining mobile data centers, and related equipment and technologies and
`
`was aware of the state of the art as of the earliest claimed priority date of the ’372 patent. For the
`
`purposes of this declaration, I have been asked to assume that the earliest priority date of the ’372
`
`patent is February 8, 2017. I believe that I would qualify as understanding the knowledge and skill
`
`of a POSITA as of that date, and I have a sufficient level of knowledge, experience, and expertise
`
`to provide an expert opinion in the field of the ’372 patent.
`
`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
`
`
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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
`
`’372 patent. As stated above, for the purposes of this declaration, I have been asked to assume that
`
`the earliest priority date of the ’372 patent is February 8, 2017.
`
`26.
`
`The Bitcoin protocol defines a system in which the creation and distribution of the
`
`bitcoin cryptocurrency is governed by consensus among a peer-to-peer network. EX1010, [0004].
`
`The network maintains a public ledger (e.g., bitcoin database) in which new transactions are
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`
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`verified and recorded by members of the network via cryptography. Id. The operations of verifying
`
`and recording transactions of cryptocurrencies such as transactions in the bitcoin cryptocurrency
`
`are sometimes referred to as mining, because completion of each mining operation typically
`
`rewards the miner with newly created cryptocurrency (e.g., bitcoins). Id. Verified transactions and
`
`newly created bitcoins are recorded in the public ledger. Id. The public ledger serves as an official
`
`history of transactions. Id. The amount of cryptocurrency owned by any entity may be determined
`
`from the public ledger. Id.
`
`VIII. OVERVIEW OF THE ’372 PATENT
`27.
`The ’372 patent relates to “operating a blockchain mining device using natural gas
`
`produced at a hydrocarbon production, storage, or processing site/facility.” EX1001, Abstract. By
`
`way of background to its technology, the ’372 Patent explains that “[a]t remote oil and gas
`
`facilities, excess natural gas is often wasted, for example vented to atmosphere or burned via
`
`flaring.” EX1001, 1:11-13. Figures 1 and 2 are schematics illustrating systems for “powering a
`
`blockchain [mining device (12)] at a remote oil well [14],” with a generator (28). EX1001, 5:53-
`
`62; 8:35-48.
`
`28.
`
`Figure 1 (shown below) shows “a generator [28] retrofitted to a prime mover [24],
`
`which operates a drivehead to pump oil up from the reservoir.” EX1001, 5:53-56. That is, in this
`
`case, the blockchain mining device (12) is connected to a generator (28), which is retrofitted to a
`
`prime mover.
`
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`’372 Patent, EX1001, Fig. 1
`
`
`
`29.
`
`Figure 2 (shown below) is similar to Figure 1, but this embodiment includes two
`
`engines—one that (with a generator) powers the blockchain mining device (12), and one that
`
`operates the drive head. See EX1001, 5:57-62.
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`’372 Patent, EX1001, Fig. 2
`
`
`
`30.
`
`Figure 3 (shown below) is a schematic illustrating another embodiment of a system
`
`for powering a blockchain mine, in which “a generator and engine are connected to be powered
`
`by combustible gas taken off of an oil storage unit to power the blockchain main.”
`
`
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`’372 Patent, EX1001, Fig. 3
`
`
`
`31.
`
`Common among these three embodiments is that, in each case, a blockchain mining
`
`device is connected to a generator that runs on combustible gas – in particular, natural gas at an
`
`oil well or oil storage unit.
`
`32.
`
`I understand that the ’372 patent lists Stephen Barbour as the inventor, Upstream
`
`Data Inc. (“Upstream”) as the applicant and assignee, and has the title: “Blockchain Mine at Oil
`
`or Gas Facility.” For purposes of this declaration, I have been asked to assume that February 8,
`
`2017, the filing date of US provisional application No. 62/456,380, is the earliest possible priority
`
`date for the ’372 patent.
`
`33.
`
`Generally, the ’372 patent discusses systems and methods for using a source
`
`combustible gas to power bitcoin mining. I understand that in the related Complaint, Upstream
`
`
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`has relied specifically on claims 1 and 2 of the ’372 patent.
`
`IX. OVERVIEW OF THE PROSECUTION HISTORY
`34.
`The application that led to the ’372 patent was filed as U.S. Patent Application No.
`
`16/484,728 on February 6, 2018. EX1002.
`
`35.
`
`I understand that the ’372 patent was filed with 41 claim, two of which were
`
`independent claims.
`
`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.
`
`EX1002, 686-691. I further understand that before examination, the claims were amended to
`
`“remove all multiple dependencies and reduce excess claim fees.” EX1002, 543-550. Claims 1
`
`and 24 were not amended.
`
`36.
`
`I understand that on August 9, 2021, before any office actions had been mailed, a
`
`third-party submission was made to cite a Reddit posting dated July 3, 2016. EX1002, 439-447.
`
`According to the third-party submitter, the Reddit posting “discloses a source of combustible gas,
`
`a generator that generate (sic) electricity from combustion of the gas, and a blockchain mining
`
`device.” EX1002, 440.
`
`37.
`
`I understand that the Office initiated and conducted an interview with the
`
`Upstream’s representative on April 15, 2022, “to gain insight and a better understand (sic) the
`
`claimed invention as well as the oil/natural gas industry as it applies to block chain mining.”
`
`
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`EX1002, 348. The Office concluded that the third-party submission “reads adequately on the
`
`independent claims,” and suggested that “[m]oving forward, [] drafting independent claims that
`
`clearly unite the combustible gas production elements and the block chain mining elements.”
`
`EX1002, 348. With respect to the dependent claims, the Office indicated that “[a]llowable subject
`
`matter may reside in dependent claims 12–18,” but that “further searching [would be] required.”
`
`EX1002, 348. The Office’s initial search revealed little in the way of qualified prior art, but did
`
`reveal Belady-837 (US20140096837A1). EX1002, 348.
`
`38.
`
`I understand that on April 19, 2022, before Upstream amended the claims, the
`
`Office mailed an Office Action. EX1002, 329-347. Claims 1 and 24, as well as dependent claims,
`
`were rejected for obviousness over Belady-837 and Gleifchauf (US20180109541A1). EX1002,
`
`336. No anticipation rejections were made, despite the Office having indicated in the April 15
`
`interview that the Reddit Post reads on the independent claims.
`
`39.
`
`I understand that, in making the obviousness rejection, the Office took the position
`
`that Belady-837 discloses using a gas generator to power a data center (blockchain mining device),
`
`and Gleifchauf discloses using servers for blockchain mining and verification. EX1002, 336-337.
`
`According to the Office, it would have been obvious to combine Belady-837 and Gleifchauf
`
`because Belady-837 discloses “data centers are being located in areas where natural resources,
`
`from which electrical power can be derived, are abundant and can be obtained inexpensively. For
`
`example, natural gas is a byproduct of oil drilling operations and is often considered a waste
`
`byproduct since it cannot be economically captured and brought to the market.” EX1002, 336-337
`
`(quoting EX1017, [0004]).
`
`40.
`
`I understand that subsequent to receiving the obviousness rejection, Upstream
`
`amended the independent claims to recite:
`
`
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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
`
`also argued that blockchain mining is different from traditional data-processing because it requires
`
`more energy. EX1002, 222-223. Upstream argued that its “discovery amounts to a new use for
`
`
`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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`previously known individual components (a common precursor for patentability), and may provide
`
`numerous benefits including the reduction of greenhouse gas emissions and capture of revenue
`
`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:
`
`
`I understand that the ’372 patent issued shortly after a Rule 312 amendment
`
`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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`processing facility”). EX1002, 20-29.
`
`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
`
`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
`
`constructions are proper and that certain terms are indefinite, and I do not concede, by providing
`
`my opinions herein, that the challenged claims are of definite scope or properly described.
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`48.
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`For the purposes of this declaration, no formal claim constructions are presently
`
`necessary, besides the specific constructions described below.
`
`49.
`
`The term “blockchain mining device” should be construed as “any computing
`
`device that is capable of performing blockchain mining without regard to processor speed or
`
`power.” The ‘372 patent explains that “[a] blockchain is a form of database, which may be saved
`
`as a distributed ledger in a network of nodes,” where each node “maintains a continuously-growing
`
`list of records called blocks.” [EX1001, 11:46-47]. The nodes 122 are said to be “electronic devices
`
`126, for example desktop computers, laptop computers, tablet computers, cellular telephones,
`
`servers, or other suitable devices.” [EX1001, 14:30-33].
`
`50.
`
`The ‘372 patent further explains that “mining” refers to the “computational review
`
`process performed on each block of data in a blockchain” required to “maintain[]a blockchain
`
`database.” [EX1001, 13:5-7]. Importantly, in order for a node 122 (computing device) to operate
`
`as a miner with respect to a blockchain, it must simply include “mining circuitry 130 … to perform
`
`data mining operations.” [EX1001, 14:44-48]. Unsurprisingly, the ‘372 patent admits that such
`
`“mining circuitry” may simply be “an integrated circuit chip” (i.e., a processor) with “various
`
`mining circuitry examples includ[ing] CPU (central processing unit), GPU (graphics processing
`
`unit), FPGA (Field-Programmable Gate Array), and ASIC (application specific integrated
`
`circuit).” [EX1001, 14:61-63; 17:12-15]. In other words, no special purpose hardware is required
`
`to mine blockchain transactions. Indeed, several brands of cryptocurrencies (i.e., blockchains) still
`
`exist to this day that can be profitably mined using a standard computer. For example, the website
`
`Brave New Coin reports that, although Bitcoin-brand cryptocurrency can no longer be profitably
`
`mined with a standard PC, there still exists other brands of “[c]rypto you can mine from a home
`
`computer in 2023.” EX1022.
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`51.
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`The term “mining processor” should be construed as “any processor that is capable
`
`of performing blockchain mining without regard to processor speed or power.” See discussion
`
`regarding “blockchain mining device” above.
`
`52.
`
`The term “a continuous flow of combustible gas” should be construed as “a flow
`
`of combustible gas that is continuous for at least a time period (e.g., an hour, a day, a week, a
`
`month, or longer ).” For this construction, I relied on Dr. Michael Nikolaou.
`
`53.
`
`The term “sales gas line” should be construed as “a pipeline for long-distance
`
`transportation of sales gas meeting sales-gas specifications from a hydrocarbon production,
`
`storage, or processing facility to a customer connected to the pipeline.” For this construction, I
`
`relied on Dr. Michael Nikolaou.
`
`54.
`
`I reserve the right to supplement my opinions if Patent Owner offers a construction
`
`of any term in the ’372 patent.
`
`XII. SUMMARY OF THE PRIOR ART
`A.
`Dickerson
`
`55.
`
`56.
`
`I relied on Dr. Michael Nikolaou’s review of Dickerson in forming my opinions.
`
`I understand that PCT Publication No. 2015/123,257 (“Dickerson”) has an
`
`international publication date of August 20, 2015. [EX1005, Cover].
`
`57.
`
`I understand that Dickerson “relates generally to a mobile apparatus, system, and
`
`method for processing and using raw natural gas that is normally flared at the site of oil and gas
`
`field operation facilities.” [EX1005, [0002]].
`
`58.
`
`I understand that Dickerson describes a mobile power generation system that can
`
`generate electricity using flare gas (raw natural gas that is to be flared) at an oil and gas production
`
`facility. [EX1005, Abstract, [0002]]. Dickerson explains that “[g]as flared as a byproduct of oil
`
`drilling in the Bakken Field releases millions of tons of carbon dioxide into the atmosphere every
`
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`year, causing considerable environmental concerns” and “a number of oil and gas field facilities
`
`where gas is being flared rely on diesel-powered electrical generating units for electricity needed
`
`to run the facilities.” [EX1005, [0003], [0004]].
`
`59.
`
`I understand that Dickerson discloses that it seeks to “reduce costs associated with
`
`diesel-powered electrical generating units, to eliminate undesirable emissions generated by flaring
`
`natural gas, and to reduce emissions from the generation of electricity used to operate oil and gas
`
`field facilities, since electricity produced by gas engines results in fewer harmful emissions than
`
`electricity produced by diesel-fuel engines.” [EX1005, [0010]].
`
`60.
`
`I understand that Dickerson’s system includes (1) one membrane separation unit
`
`for separating useful fuel gas from raw natural gas produced at an oil or gas production facility,
`
`(2) a gas engine that uses the fuel gas to generate electricity that is returned to the facility, and (3)
`
`a control panel for operating the apparatus. [EX1005, [0005]]. FIG. 1 of Dickerson shows one
`
`setup of its combined gas conditioning and power generation system. [EX1005, [0008]]. As shown
`
`in FIG. 1, gas genset 102 includes a gas engine 110 and a generator 112 that is driven by the engine
`
`110. [EX1005, [0026]].
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`Dickerson, EX1005, FIG. 1 (annotated)
`
`61.
`
`I understand that Dickerson further discloses that a chiller unit can be included to
`
`remove natural gas liquids (NGLs) from the raw natural gas stream, and to further reduce the
`
`flaring of raw natural gas. [EX1005, [0022]].
`
`62.
`
`I understand that Dickerson discloses that its mobile power generation system can
`
`be delivered in a 40-foot-long ISO container. [EX1005, [0014]]. Dickerson explains that the
`
`container and its contents together define a self-contained, mobile flare gas processing unit that
`
`provides a user with electrical power output but requires only feed gas input from the user.
`
`[EX1005, [0026]]. Dickerson envisions u