Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 1 of 12 PageID# 10069
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`Exhibit 1
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`Exhibit 1
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 2 of 12 PageID# 10070
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`Filed on behalf of: Philip Morris Products, S.A.
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`Entered: December 11, 2020
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`_______________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_______________________
`
`PHILIP MORRIS PRODUCTS, S.A.,
`Petitioner,
`
`v.
`
`RAI STRATEGIC HOLDINGS, INC.,
`Patent Owner.
`_______________________
`Case PGR2020-00071
`Patent 10,492,542
`______________________
`
`
`PETITIONER’S
`SUPPLEMENTAL BRIEF
`
`
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`
`
`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 3 of 12 PageID# 10071
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`
`
`TABLE OF AUTHORITIES
`
`CASES
`
` Page(s)
`
`Apple Inc. v. Fintiv, Inc.,
`IPR2020-00019, Paper 11 (Mar. 20, 2020) .......................................................... 1
`Google v. Parus Holdings,
`IPR2020-00846, Paper 9 (Oct. 21, 2020) ............................................................. 2
`Sand Revolution II v. Cont’l Intermodal Group-Trucking,
`IPR2019-01393, Paper 24 (June 16, 2020) ........................................................... 2
`
`
`i
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`
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 4 of 12 PageID# 10072
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`
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`Exhibit List
`
`Description
`Ex.
`1001 U.S. Patent No. 10,492,542 ( “’542 patent”)
`1002 File History regarding U.S. Patent No. 10,492,542 (“’542 FH”)
`1003 U.S. Patent Application No. 13/205,841 (“’841 Application”)
`1004 Declaration of Dr. Seetharama C. Deevi in Support of Petitions for
`PTAB Review of ’542 Patent (“Deevi Decl.”)
`1005 Curriculum Vitae of Dr. Seetharama C. Deevi
`1006 U.S. Patent No. 7,726,320 (“Robinson”)
`1007
`International Patent Application Publication No. WO 2011/050964
`(“Greim”)
`1008 U.S. Patent Application Publication No. 2007/0102013 (“Adams”)
`1009 U.S. Patent No. 4,947,874 (“Brooks”)
`1010 U.S. Patent No. 5,060,671 (“Counts-671”)
`1011 U.S. Patent No. 5,144,962 (“Counts-962”)
`1012
`International Patent Application Publication No. WO 2008/139411
`(“Wang”)
`1013 European Patent Application No. EP1618803A1 (“Hon”)
`1014 U.S. Patent No. 5,498,855 (“Deevi-855”)
`1015 U.S. Patent No. 5,408,574 (“Deevi-574”)
`1016 U.S. Patent No. 3,393,927 (“Kelly”)
`1017 U.S. Patent No. 1,304,075 (“Lofgren”)
`1018 U.S. Patent No. 4,361,374 (“Marmillion”)
`1019 U.S. Patent No. 5,249,586 (“Morgan”)
`1020 U.S. Patent No. 8,499,766 (“Newton”)
`1021 U.S. Patent Application Publication No. 2008/0149118(“Oglesby”)
`1022 U.S. Patent No. 4,550,967 (“Riches”)
`1023 U.S. Patent Application Publication No. 2010/00319686 (“Schennum”)
`
`ii
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 5 of 12 PageID# 10073
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`
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`Description
`Ex.
`1024 European Patent No. EP0173845 (“Stieler”)
`1025 RESERVED
`1026 RESERVED
`1027 Press Release, Altria, FDA Authorizes Sale of IQOS Tobacco Heating
`System in the U.S. (Apr. 30, 2019) (“Altria Announcement”)
`1028 U.S. Patent No. 6,808,407 (“Cannon”)
`1029 Harvard School of Public Health, Division of Public Health Practice,
`Potentially Reduced Exposure Tobacco Products - A Public Health
`Information Guide (2008) (“Eclipse-Premier”)
`1030 Pilot Corp. Stores Offer Ruyan Smoking Alternatives in Knoxville,
`Tenn.-Area Convenience Stores; Ruyan Vegas(R) Disposable E-Cigar
`in Select Stores in December; Jazz Disposable E-Cigarette Will Premier
`in Next 30 Days, PR Newswire, Dec. 16, 2008
`1031 RESERVED
`1032 Douglas C. McGill, ‘Smokeless’ Cigarette’s Hapless Start, N.Y. Times,
`Nov. 19, 1988, at 33
`1033 Barney J. Feder, Reynolds Expands Test of Smokeless Cigarette, N.Y.
`Times, Apr. 30, 1996, at D10
`IQOS - A New Era in Tobacco (2014)
`1034
`1035 Philip Morris Int’l, 2019 Third-Quarter Results Presentation
`(Oct. 17, 2019)
`1036 Philip Morris Int’l, The IQOS Heating System, Tobacco Products
`Scientific Advisory Committee Presentation (Jan. 24, 2018)
`1037 Photographs of Marlboro Heatsticks®
`1038 FDA News Release, FDA Permits Sale of IQOS Tobacco Heating
`System Through Premarket Tobacco Product Application Pathway
`(Apr. 30, 2019)
`1039 D. Kirk Davidson, Selling Sin: The Marketing of Socially Unacceptable
`Products (2d ed. 2003)
`1040 U.S. Patent No. 5,505,214 (“Collins-214”)
`
`iii
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 6 of 12 PageID# 10074
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`
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`Description
`Ex.
`1041 File History regarding U.S. Patent No. 10,588,355 (“’355 FH”)
`1042 Nat’l Steel Car Ltd. v. Freightcar Am., Inc.,
`2017 U.S. Dist. LEXIS 87941 (N.D. Ill. June 8, 2017)
`1043 Oxford Dictionary of English (3d ed. 2010)
`1044 RESERVED
`1045 Complaint in RAI Strategic Holdings, Inc. v. Altria Client Services LLC,
`No. 1:20-cv-393 (E.D. Va. Apr. 9, 2020)
`1046 Complainants RAI Strategic Holdings, Inc., R.J. Reynolds Vapor
`Company, and R.J. Reynolds Tobacco Company’s Infringement Claim
`Chart for U.S. Patent No. 9,839,238 from ITC Inv. No. 337-TA-1199
`(Ex. 39)
`1047 Complainants RAI Strategic Holdings, Inc., R.J. Reynolds Vapor
`Company, and R.J. Reynolds Tobacco Company’s Infringement Claim
`Chart U.S. Patent No. 9,930,915 from ITC Inv. No. 337-TA-1199 (Ex.
`43)
`1048 Gentiluomo v. Brunswick Bowling & Billiards Corp.,
`36 F. App’x 433 (Fed. Cir. 2002)
`1049 Wiley Electrical and Electronics Engineering Dictionary (2004)
`1050 American Heritage College Dictionary (4th ed. 2010)
`1051 Philip Morris Products S.A.’s Objections and Responses to Plaintiff
`First Set of Interrogatories (Nos. 1-7), RAI Strategic Holdings, Inc. v.
`Altria Client Services LLC, No. 1:20-cv-393 (E.D. Va. Sept. 21, 2020)
`(excerpts)
`1052 Letter from counsel for Altria Client Services LLC, Philip Morris USA,
`Inc., and Philip Morris Products SA to counsel for RAI Strategic
`Holdings, Inc. and R.J. Reynolds Vapor Company (Nov. 10, 2020)
`RESERVED
`
`1053 -
`1054
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`iv
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 7 of 12 PageID# 10075
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`1057
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`Description
`Ex.
`1055 Defendants-Counterclaim Plaintiffs’ Opening Claim Construction Brief,
`RAI Strategic Holdings, Inc. v. Altria Client Services LLC, No. 1:20-cv-
`393 (E.D. Va. Oct. 23, 2020), ECF No. 224 (excerpts)
`1056 Plaintiffs’ Opening Claim Construction Brief, RAI Strategic Holdings,
`Inc. v. Altria Client Services LLC, No. 1:20-cv-393 (E.D. Va. Oct. 23,
`2020), ECF No. 226 (excerpts)
`Joint Proposed Discovery Plan Pursuant to Rule 26(f), RAI Strategic
`Holdings, Inc. v. Altria Client Services LLC, No. 1:20-cv-393 (E.D. Va.
`Sept. 2, 2020), ECF No. 97
`1058 Rule 16(b) Scheduling Order, RAI Strategic Holdings, Inc. v. Altria
`Client Services LLC, No. 1:20-cv-393 (E.D. Va. Sept. 8, 2020), ECF
`No. 99
`1059 Order, RAI Strategic Holdings, Inc. v. Altria Client Services LLC, No.
`1:20-cv-393 (E.D. Va. Sept. 21, 2020), ECF No. 107
`ICU Medical, Inc. v. Alaris Medical Systems, Inc., No. SA CV 04-
`00689 MRP (VPKx), 2007 WL 8081360 (C.D. Cal. Jan. 22, 2007)
`1061 Brief in Support of Plaintiffs’ Motion to Modify Scheduling Order, RAI
`Strategic Holdings, Inc. v. Altria Client Services LLC, No. 1:20-cv-393
`(E.D. Va. Nov. 6, 2020), ECF No. 308
`1062 Order in RAI Strategic Holdings, Inc. v. Altria Client Services LLC, No.
`1:20-cv-393 (E.D. Va. Dec. 4, 2020), ECF No. 426
`1063 Transcript of Motion Hearing Proceedings (Via Zoom Conference)
`Before the Honorable Theresa C. Buchanan, United States District
`Court Magistrate Judge, RAI Strategic Holdings, Inc. v. Altria Client
`Services LLC, No. 1:20-cv-393 (E.D. Va. Dec. 4, 2020)
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`1060
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`v
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 8 of 12 PageID# 10076
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`
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`I.
`
`The Court’s Pre-Institution Stay Moots Any NHK/Fintiv Issues
`The Board’s precedential Fintiv case explains that a pre-institution stay
`moots the NHK/Fintiv analysis. NHK/Fintiv applies “[w]hen the patent owner
`raises an argument for discretionary denial under NHK due to an earlier trial date.”
`Apple Inc. v. Fintiv, Inc., IPR2020-00019, Paper 11 at 5 (Mar. 20, 2020)
`(precedential) (“Fintiv”). Because it eliminates any earlier (or later) trial date, a
`“district court stay of the parallel district court case render[s] moot the patent
`owner’s argument for discretionary denial.” Id. at 6 n.9 (emphasis added).
`Here, the Court issued a pre-institution stay, mooting Patent Owner’s
`NHK/Fintiv arguments. Ex. 1062. Further, the Court noted, “we’re not going to get
`to trial any time soon,” perhaps not until “the end of 2022” due to COVID and the
`backlog of criminal and civil cases. Ex. 1063 at 6-7. Nonetheless, the parties will
`report back to the Court within three days of the Board’s institution decision in this
`PGR (and its alternative IPR). Ex. 1063 at 8-9. The stay will remain in place if the
`Board institutes review. Id.; Ex. 1062 (granting Petitioner’s motion).
`
`II. All of the Fintiv Factors Favor Institution
`Because the Court’s stay mooted any basis for an NHK/Fintiv denial, no
`further analysis is needed. Indeed, all of the Fintiv factors now favor institution.
`Factor 1 strongly favors institution. The “district court stay of the
`litigation pending resolution of the PTAB trial allays concerns about inefficiency
`and duplication of efforts. This fact has strongly weighed against exercising the
`authority to deny institution under NHK.” Fintiv at 6 (emphasis added).
`Factors 2 and 5 strongly favor institution. The Court will not lift the stay
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`1
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 9 of 12 PageID# 10077
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`until after the Board’s final decision, pushing trial well after the Board’s decision.
`Further, trial might not even be possible until “the end of 2022” because of the
`backlog of criminal trials. Ex. 1063 at 6. And because the Board will reach
`invalidity before the Court, Factor 5 now favors institution, too. Google v. Parus
`Holdings, IPR2020-00846, Paper 9 at 20-21 (Oct. 21, 2020).
`Factor 3 favors institution for the same reasons it did in the Board’s recent
`decision in the ’268 patent proceeding. IPR2020-00921, Paper 9 at 16-18 (Nov. 16,
`2020). Fact discovery is incomplete and will remain so until the stay is lifted,
`expert reports will not be served, and all work in the case is halted except for
`“things that need to be cleaned up in discovery,” e.g., “finish answering any
`discovery that may be out there.” Ex. 1063 at 9-13. The Court issued a one-page
`Markman Order on November 24, but the Order merely assigned the sole term in
`dispute (“linear array” in claims 4 and 22) its plain and ordinary meaning. This
`“does not demonstrate the high level of investment … as the detailed Markman
`Order in Fintiv.” Sand Revolution II v. Cont’l Intermodal Group-Trucking,
`IPR2019-01393, Paper 24 at 7-9 (June 16, 2020) (informative).
`Factor 4 strongly favors institution. The statutory IPR/PGR estoppels
`eliminate Fintiv’s concerns regarding conflicting decisions and inefficiency.
`Factor 6 strongly favors institution. The merits are strong, with PGR
`eligibility and unpatentability (for some grounds) currently undisputed. Reply 3-5.
`Consequently, all six Fintiv factors favor institution now that the Court has
`stayed the case.
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`2
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 10 of 12 PageID# 10078
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`Dated: December 11, 2020
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`Respectfully submitted,
`
`By: / Jonathan M. Strang /
`
`Jonathan M. Strang (Reg. No. 61,724)
`jonathan.strang@lw.com
`Matthew J. Moore (Reg. No. 42,012)
`matthew.moore@lw.com
`Diane E. Ghrist (pro hac vice forthcoming)
`diane.ghrist@lw.com
`Latham & Watkins LLP
`555 Eleventh Street, NW, Ste. 1000
`Washington, D.C. 20004-1304
`Telephone: 202.637.2200
`Fax: 202.637.2201
`
`Dale Chang (Reg. No. 61,476)
`dale.chang@lw.com
`Lesley M. Hamming (Reg. No. 66,986)
`lesley.hamming@lw.com
`Latham & Watkins LLP
`330 North Wabash Ave., Ste. 2800
`Chicago, IL 60611
`Telephone: 312.876.7700
`Fax: 312.993.9767
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`Counsel for Petitioner
`Philip Morris Products, S.A.
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`3
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 11 of 12 PageID# 10079
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`CERTIFICATE OF SERVICE
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`Pursuant to 37 C.F.R. § 42.6(e), I certify that on this 11th day of December,
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`2020, a true and correct copy of the foregoing Petitioner’s Supplemental Brief and
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`all Exhibits were served by electronic mail on Patent Owner’s lead and backup
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`counsel at the following email addresses:
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`David M. Maiorana (Reg. No. 41,449)
`Kenneth S. Luchesi (Reg. No. 58,673)
`David B. Cochran (Reg. No. 39,142)
`Jones Day
`901 Lakeside Avenue
`Cleveland, OH 44114
`Tel: 216.586.3939
`Fax: 216.579.0212
`Email: dmaiorana@jonesday.com
`Email: kluchesi@jonesday.com
`Email: dcochran@jonesday.com
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`Anthony M. Insogna (Reg. No. 35,203)
`Jones Day
`4655 Executive Drive, Suite 1500
`San Diego, CA 92121-3134
`Tel: 858.314.1200
`Fax: 844.345.3178
`Email: aminsogna@jonesday.com
`
`Geoffrey K. Gavin (Reg. No. 47,591)
`Jones Day
`1420 Peachtree Street, N.E., Suite 800
`Atlanta, GA 30309-3053
`Tel: 404.521.3939
`Fax: 404.581.8330
`Email: ggavin@jonesday.com
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`Case 1:20-cv-00393-LO-TCB Document 450-1 Filed 01/27/21 Page 12 of 12 PageID# 10080
`PGR2020-00071 (USP 10,492,542)
`Petitioner’s Supplemental Brief
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`By: / Jonathan M. Strang /
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`Joshua R. Nightingale (Reg. No. 67,865)
`Jones Day
`500 Grant Street, Suite 4500
`Pittsburgh, PA 15219-2514
`Tel: 412.391.3939
`Fax: 412.394.7959
`Email: jrnightingale@jonesday.com
`
`George N. Phillips (Reg. No. 68,001)
`Jones Day
`250 Vesey Street
`New York, NY 10281-1047
`Tel: 212.326.3939
`Fax: 212.755.7306
`Email: gphillips@jonesday.com
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`Jonathan M. Strang (Reg. No. 61,724)
`jonathan.strang@lw.com
`Latham & Watkins LLP
`555 Eleventh Street, NW, Ste. 1000
`Washington, D.C. 20004-1304
`Telephone: 202.637.2200
`Fax: 202.637.2201
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`Counsel for Petitioner
`Philip Morris Products, S.A.
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