Case 1:20-cv-00393-LO-TCB Document 889-1 Filed 01/21/22 Page 1 of 53 PageID# 23832
`Case 1:20-cv-00393-LO-TCB Document 889-1 Filed 01/21/22 Page 1 of 53 PagelD# 23832
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`EXHIBIT 1
`EXHIBIT1
`(PUBLIC)
`(PUBLIC)
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`Case 1:20-cv-00393-LO-TCB Document 889-1 Filed 01/21/22 Page 2 of 53 PageID# 23833
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`RESTRICTED – ATTORNEYS’ EYES ONLY AND CONFIDENTIAL SOURCE CODE
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF VIRGINIA
`ALEXANDRIA DIVISION
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`SECOND SUPPLEMENTAL OPENING EXPERT REPORT OF
`JOSEPH C. McALEXANDER III
`REGARDING U.S. PATENT NUMBERS 6,803,545 AND 10,420,374
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`RJR STRATEGIC HOLDINGS, INC. AND R.J. REYNOLDS VAPOR COMPANY
`vs.
`ALTRIA CLIENT SERVICES LLC; PHILIP MORRIS USA INC.; and
`PHILIP MORRIS PRODUCTS S.A.,
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`
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`Civil Action No. 1:20-cv-00393-LO-TCB
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`CONFIDENTIAL SOURCE CODE – ATTORNEYS’ EYES ONLY INFORMATION
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`Case 1:20-cv-00393-LO-TCB Document 889-1 Filed 01/21/22 Page 3 of 53 PageID# 23834
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`TABLE OF CONTENTS
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`INTRODUCTION ............................................................................................................................... 1
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`SUMMARY OF OPINIONS .............................................................................................................. 3
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`QUALIFICATIONS ........................................................................................................................... 4
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`OTHER CASES .................................................................................................................................. 6
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`COMPENSATION ............................................................................................................................. 6
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`REVIEW AND USE OF DOCUMENTS, DEPOSITIONS, AND OTHER MATERIALS ............... 6
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`LEGAL STANDARDS ....................................................................................................................... 7
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`7.1 Level of Skill In The Art ........................................................................................................... 8
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`7.2
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`Infringement .............................................................................................................................. 8
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`7.2.1 Direct Infringement Under 35 U.S.C. § 271 (a) ........................................................... 9
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`7.2.2
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`Indirect Infringement Under 35 U.S.C. § 271 (b) And § 271 (c) ............................... 10
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`7.2.3 Technical Aspects of Damages .................................................................................. 12
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`8
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`TECHNICAL BACKGROUND ....................................................................................................... 13
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`8.1 Lithium-ion Batteries .............................................................................................................. 13
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`8.2 Power Regulation .................................................................................................................... 16
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`9
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`THE ASSERTED PATENTS ........................................................................................................... 18
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`9.1 The '545 Patent ........................................................................................................................ 18
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`9.1.1 Background Related To The '545 Patent .................................................................... 19
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`9.1.2 The Inventions Claimed In The '545 Patent ............................................................... 20
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`9.1.3 Benefits Of The '545 Patent ....................................................................................... 23
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`9.2 The '374 Patent ........................................................................................................................ 31
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`9.2.1 Background Related To The '374 Patent .................................................................... 32
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`1:20-cv-00393-LO-TCB, McAlexander Expert Report - Infringement
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`9.2.2 The Inventions Claimed In The '374 Patent ............................................................... 34
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`9.2.3 Benefits Of The '374 Patent ....................................................................................... 40
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`10 THE PROSECUTION HISTORIES OF THE ASSERTED PATENTS ........................................... 42
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`10.1 The Prosecution History Of The '545 Patent ........................................................................... 42
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`10.2 The Prosecution History Of The '374 Patent ........................................................................... 43
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`11 OVERVIEW OF THE ACCUSED PRODUCTS ............................................................................. 44
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`12 ANALYSIS AND OPINIONS .......................................................................................................... 46
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`12.1 The Accused Products ............................................................................................................. 46
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`12.2 The Level Of Ordinary Skill In The Art .................................................................................. 46
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`12.3 Claim Construction .................................................................................................................. 47
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`12.4 Infringement Of The Asserted Patents .................................................................................... 47
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`12.4.1 Methodology Used To Assess Infringement .............................................................. 47
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`12.4.2 Infringement Determination ....................................................................................... 48
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`12.5 The Asserted Claims Of The '545 Patent ................................................................................ 50
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`12.6 The Accused Products Infringe The Asserted Claims Of The '545 Patent .............................. 51
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`12.6.1 RJR’s Non-Infringement Arguments For The '545 Patent Are Incorrect ................... 51
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`12.6.1.1 Claim 1 [preamble] - “An electrically heated smoking system comprising:”
`.................................................................................................................... 52
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`12.6.1.2 Claim 1[c] - “a controller to control a flow of modulated pulses of
`electrical power from the lithium ion power source to the at least one
`electrical resistance heating element to prevent damage to the lithium ion
`power source” ............................................................................................ 54
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`12.6.1.2.1 VUSE Alto ............................................................................. 55
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`12.6.1.2.1.1 VUSE Alto Source Code ................................. 57
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`12.6.1.2.2 VUSE Solo ............................................................................. 62
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`12.6.1.2.2.1 VUSE Solo Source Code ................................. 65
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`12.6.1.2.3 VUSE Vibe ............................................................................. 70
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`12.6.1.2.3.1 VUSE Vibe Source Code ................................ 72
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`12.6.1.2.4 VUSE Ciro ............................................................................. 77
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`12.6.1.2.5 The Controller In Each VUSE Product Prevents Damage To
`The Lithium Ion Power Source .............................................. 79
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`12.6.1.3 Claim 7- “The electrically heated smoking system of claim 2, wherein the
`lithium ion power source comprises at least one lithium ion battery cell and
`circuitry to stop flow of current if the at least one lithium ion battery cell is
`short circuited.” .......................................................................................... 95
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`12.6.1.3.1 VUSE Alto ............................................................................. 95
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`12.6.1.3.2 VUSE Solo ............................................................................. 99
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`12.6.1.3.3 VUSE Vibe ........................................................................... 103
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`12.6.1.3.4 VUSE Ciro ........................................................................... 107
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`12.6.2 The VUSE Products Infringe The Asserted Claims Of The '545 Patent .................. 111
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`12.6.2.1 Claim 1 [preamble] - “An electrically heated smoking system comprising;”
`.................................................................................................................. 111
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`12.6.2.2 Claim 1[a] – “at least one electrical resistance heating element;” ........... 112
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`12.6.2.2.1 VUSE Alto ........................................................................... 112
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`12.6.2.2.2 VUSE Solo ........................................................................... 113
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`12.6.2.2.3 VUSE Vibe ........................................................................... 115
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`12.6.2.2.4 VUSE Ciro ........................................................................... 117
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`12.6.2.3 Claim 1[b] - “a lithium ion power source electrically connected to the at
`least one electrical resistance heating element;” ...................................... 119
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`12.6.2.3.1 VUSE Alto ........................................................................... 119
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`12.6.2.3.2 VUSE Solo ........................................................................... 122
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`12.6.2.3.3 VUSE Vibe ........................................................................... 124
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`12.6.2.3.4 VUSE Ciro ........................................................................... 127
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`12.6.2.4 Claim 1[c] - “a controller to control a flow of modulated pulses of
`electrical power from the lithium ion power source to the at least one
`electrical resistance heating element to prevent damage to the lithium ion
`power source” .......................................................................................... 130
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`12.6.2.5 Claim 2 - “The electrically heated smoking system of claim 1, wherein the
`lithium ion power source comprises a lithium ion battery cell.” ............. 131
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`12.6.2.6 Claim 3 - “The electrically heated smoking system of claim 2, wherein the
`lithium ion battery cell has a maximum voltage greater than 4 volts.” .... 132
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`12.6.2.7 Claim 4 - “The electrically heated smoking system of claim 2, wherein the
`lithium ion battery cell has a discharge capacity of 250 to 2000 mAh.” . 134
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`12.6.2.8 Claim 7 - “The electrically heated smoking system of claim 2, wherein the
`lithium ion power source comprises at least one lithium ion battery cell and
`circuitry to stop flow of current if the at least one lithium ion battery cell is
`short circuited.” ........................................................................................ 135
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`12.7 The Asserted Claims Of The '374 Patent .............................................................................. 136
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`12.8 The VUSE Products Infringe The Asserted Claims Of The '374 Patent ............................... 139
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`12.8.1 Overview Of The Accused Products ........................................................................ 140
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`12.8.1.1 General Overview .................................................................................... 140
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`12.8.1.2 VUSE Ciro, Alto, Solo And Vibe ............................................................ 144
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`12.8.1.2.1 VUSE Ciro ........................................................................... 144
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`12.8.1.2.2 VUSE Alto ........................................................................... 149
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`12.8.1.2.3 VUSE Solo ........................................................................... 154
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`12.8.1.2.4 VUSE Vibe ........................................................................... 160
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`12.8.1.3 Reverse-Engineering Of The VUSE Products ......................................... 166
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`12.8.2 RJR’s Non-Infringement Arguments For The '374 Patent Are Incorrect ................. 168
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`12.8.2.1 “An electronic vaping device comprising” (claims 1, 16) ....................... 168
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`12.8.2.2 “a puff sensor assembly including a controller” (claim 1) ....................... 169
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`12.8.2.2.1 VUSE Ciro ........................................................................... 170
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`12.8.2.2.2 VUSE Alto ........................................................................... 171
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`12.8.2.2.3 VUSE Solo ........................................................................... 173
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`12.8.2.2.4 VUSE Vibe ........................................................................... 175
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`12.8.2.3 “a capacitor arranged in the metal casing and connected to the controller,
`the capacitor consisting essentially of a flexible conductive membrane and
`a rigid conductive plate spaced apart by an insulating ring spacer between
`the flexible conductive membrane and the rigid conductive plate, and an air
`dielectric between the flexible conductive membrane and the rigid
`conductive plate” (claim 1) ...................................................................... 177
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`12.8.2.4 “wherein the puff sensor assembly is configured to sense rate and direction
`of the airflow through the electronic vaping device” (claim 1) ............... 182
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`12.8.2.4.1 VUSE Ciro ........................................................................... 182
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`12.8.2.4.2 VUSE Alto and Vibe ............................................................ 189
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`12.8.2.4.3 VUSE Solo ........................................................................... 193
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`12.8.2.5 “[wherein the puff sensor assembly is configured to] detect a draw action at
`a mouth-end piece of the electronic vaping device based on the rate and
`direction of the airflow through the electronic vaping device” / “[wherein
`the puff sensor assembly is configured to] detect a blowing action at the
`mouth-end piece of the electronic vaping device based on the rate and
`direction of the airflow through the electronic vaping device” (claim 1) 195
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`12.8.2.5.1 VUSE Ciro ........................................................................... 197
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`12.8.2.5.1.1 RJR Documents ............................................. 197
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`12.8.2.5.1.2 Ciro ASIC Analysis ....................................... 206
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`12.8.2.5.2 VUSE Alto ........................................................................... 214
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`12.8.2.5.2.1 RJR Documents ............................................. 214
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`12.8.2.5.2.2 Alto ASIC Analysis ....................................... 216
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`12.8.2.5.3 VUSE Vibe ........................................................................... 228
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`12.8.2.5.3.1 RJR Documents ............................................. 228
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`12.8.2.5.3.2 Vibe ASIC Analysis ...................................... 229
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`12.8.2.5.4 VUSE Solo ........................................................................... 240
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`12.8.2.5.4.1 RJR Documents ............................................. 240
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`12.8.2.5.4.2 Solo ASIC Analysis ....................................... 242
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`12.8.2.6 “[wherein the puff sensor assembly is configured to] actuate a heater in
`response to detecting the draw action, but not in response to detecting the
`blowing action” (claim 1) ........................................................................ 253
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`12.8.2.6.1 VUSE Ciro ........................................................................... 254
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`12.8.2.6.2 VUSE Alto ........................................................................... 256
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`12.8.2.6.3 VUSE Solo ........................................................................... 259
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`12.8.2.6.4 VUSE Vibe ........................................................................... 262
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`12.8.2.7 “puff sensor” (claim 16) ........................................................................... 264
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`12.8.2.8 “a controller including an oscillation circuit”; “wherein the controller is
`configured to measure a variation in an oscillation frequency of the
`oscillation circuit, and to selectively actuate a heater based on the variation
`in an oscillation frequency of the oscillation circuit” (claim 16) ............. 264
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`12.8.2.8.1 VUSE Ciro ........................................................................... 265
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`12.8.2.8.2 VUSE Alto ........................................................................... 270
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`12.8.2.8.3 VUSE Vibe ........................................................................... 274
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`12.8.2.8.4 VUSE Solo ........................................................................... 277
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`12.8.2.9 “wherein the controller is further configured to detect a draw action at a
`mouth-end piece of the electronic vaping device based on the variation in
`an oscillation frequency of the oscillation circuit; and actuate the heater in
`response to detecting the draw action.” (claim 22) .................................. 280
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`12.8.2.10 “wherein the controller is further configured to output an actuation signal
`to the heater to actuate the heater in response to detecting the draw action.”
`(claim 23) ................................................................................................. 282
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`12.8.2.11 “wherein the controller is further configured to detect a blowing action at a
`mouth-end piece of the electronic vaping device based on the variation in
`an oscillation frequency of the oscillation circuit” / “the controller does not
`actuate the heater in response to detecting the blowing action” (claim 24)
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`.................................................................................................................. 283
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`12.8.2.12 “the controller is further configured to determine rate and direction of the
`airflow through the electronic vaping device based on the variation in an
`oscillation frequency of the oscillation circuit, and selectively actuate the
`heater based on the rate and direction of the airflow through the electronic
`vaping device” (claim 25) ........................................................................ 284
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`12.8.3 The VUSE Products Infringe the Asserted Claims of the '374 Patent...................... 285
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`12.8.3.1 Claim 1 ..................................................................................................... 286
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`12.8.3.1.1 “An electronic vaping device comprising” ........................... 286
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`12.8.3.1.2 “a puff sensor assembly including a controller” ................... 286
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`12.8.3.1.3 “a metal casing” .................................................................... 286
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`12.8.3.1.4 “a capacitor arranged in the metal casing and connected to the
`controller, the capacitor consisting essentially of a flexible
`conductive membrane and a rigid conductive plate spaced
`apart by an insulating ring spacer between the flexible
`conductive membrane and the rigid conductive plate, and an
`air dielectric between the flexible conductive membrane and
`the rigid conductive plate” .................................................... 288
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`12.8.3.1.5 “wherein the flexible conductive membrane is configured to
`deform in response to airflow through the electronic vaping
`device” .................................................................................. 289
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`12.8.3.1.6 “wherein the puff sensor assembly is configured to sense rate
`and direction of the airflow through the electronic vaping
`device” .................................................................................. 290
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`12.8.3.1.7 “[wherein the puff sensor assembly is configured to] detect a
`draw action at a mouth-end piece of the electronic vaping
`device based on the rate and direction of the airflow through
`the electronic vaping device” ............................................... 291
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`12.8.3.1.8 “[wherein the puff sensor assembly is configured to] detect a
`blowing action at the mouth-end piece of the electronic vaping
`device based on the rate and direction of the airflow through
`the electronic vaping device” ............................................... 291
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`12.8.3.1.9 “actuate a heater in response to detecting the draw action, but
`not in response to detecting the blowing action” .................. 291
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`12.8.3.2 Claim 2 ..................................................................................................... 292
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`12.8.3.2.1 “The electronic vaping device of claim 1, wherein the metal
`casing has an opening at a first end of the metal casing” ..... 292
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`12.8.3.3 Claim 3 ..................................................................................................... 295
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`12.8.3.3.1 “The electronic vaping device of claim 2, wherein the
`capacitor is arranged with the rigid conductive plate proximal
`to the first end of the metal casing” ...................................... 295
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`12.8.3.4 Claim 4 ..................................................................................................... 298
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`12.8.3.4.1 “The electronic vaping device of claim 2, wherein the rigid
`conductive plate is arranged between the flexible conductive
`membrane and the first end of the metal casing” ................. 298
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`12.8.3.5 Claim 5 ..................................................................................................... 299
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`12.8.3.5.1 “The electronic vaping device of claim 1, wherein the
`capacitor includes only air as a dielectric material between the
`flexible conductive membrane and the rigid conductive plate”
` .............................................................................................. 299
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`12.8.3.6 Claim 6 ..................................................................................................... 300
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`12.8.3.6.1 “The electronic vaping device of claim 1, further comprising a
`circuit board spaced apart from the capacitor by a conductive
`ring between the capacitor and the circuit board” ................ 300
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`12.8.3.7 Claim 7 ..................................................................................................... 303
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`12.8.3.7.1 “The electronic vaping device of claim 6, wherein the circuit
`board is electrically connected to the capacitor via the
`conductive ring” ................................................................... 303
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`12.8.3.8 Claim 8 ..................................................................................................... 304
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`12.8.3.8.1 “The electronic vaping device of claim 1, wherein the
`controller is configured to detect a change in a variable
`capacitance of the capacitor caused by deformation of the
`flexible conductive membrane and activate the electronic
`vaping device based on the change in a variable capacitance of
`the capacitor” ........................................................................ 304
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`12.8.3.9 Claim 9 ..................................................................................................... 306
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`12.8.3.9.1 “The electronic vaping device of claim 1, further comprising a
`housing including the puff sensor assembly; and a battery
`arranged in the housing, the battery configured to provide
`power to the electronic vaping device” ................................ 306
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`12.8.3.10 Claim 10 ................................................................................................... 308
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`12.8.3.10.1 “The electronic vaping device of claim 9, further comprising: a
`reservoir configured to hold a liquid formulation for generating
`a vapor and the heater configured to heat the liquid
`formulation to generate the vapor” ....................................... 308
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`12.8.3.11 Claim 16 ................................................................................................... 316
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`12.8.3.11.1 “An electronic vaping device comprising” ........................... 316
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`12.8.3.11.2 “a controller including an oscillation circuit; and” ............... 316
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`12.8.3.11.3 “a puff sensor” ...................................................................... 316
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`12.8.3.11.4 “including a metal casing, and” ............................................ 316
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`12.8.3.11.5 “a capacitor arranged in the metal casing and connected to the
`oscillation circuit, the capacitor consisting essentially of a
`flexible conductive membrane and a rigid conductive plate
`spaced apart by an insulating ring spacer between the flexible
`conductive membrane and the rigid conductive plate, and an
`air dielectric between the flexible conductive membrane and
`the rigid conductive plate” .................................................... 316
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`12.8.3.11.6 “wherein the flexible conductive membrane is configured to
`deform in response to airflow through the electronic vaping
`device” .................................................................................. 318
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`12.8.3.11.7 “wherein the controller is configured to measure a variation in
`an oscillation frequency of the oscillation circuit, and to
`selectively actuate a heater based on the variation in an
`oscillation frequency of the oscillation circuit” .................... 318
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`12.8.3.12 Claim 17 ................................................................................................... 318
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`12.8.3.12.1 “The electronic vaping device of claim 16, further comprising:
`a housing in which the controller and puff sensor are arranged;
`and a battery arranged within the housing, the battery
`configured to provide power to the electronic vaping device”
` .............................................................................................. 318
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`12.8.3.13 Claim 18 ................................................................................................... 319
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`12.8.3.13.1 “The electronic vaping device of claim 17, further comprising:
`the heater; and a reservoir configured to hold a liquid
`formulation for generating a vapor; and wherein the heater is
`configured to heat the liquid formulation to generate the
`vapor” ................................................................................... 319
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`12.8.3.14 Claim 19 ................................................................................................... 319
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`12.8.3.14.1 “The electronic vaping device of claim 16, wherein the metal
`casing has an opening at a first end of the metal casing” ..... 319
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`12.8.3.15 Claim 20 ................................................................................................... 319
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`12.8.3.15.1 “The electronic vaping device of claim 19, wherein the rigid
`conductive plate is arranged between the flexible conductive
`membrane and the first end of the metal casing” ................. 319
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`12.8.3.16 Claim 21 ................................................................................................... 320
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`12.8.3.16.1 “The electronic vaping device of claim 16, wherein capacitive
`output terminals of the capacitor are connected to input
`terminals of the oscillation circuit” ...................................... 320
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`12.8.3.17 Claim 22 ................................................................................................... 320
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`12.8.3.17.1 “The electronic vaping device of claim 16, wherein the
`controller is further configured to detect a draw action at a
`mouth-end piece of the electronic vaping device based on the
`variation in an oscillation frequency of the oscillation circuit;
`and actuate the heater in response to detecting the draw action”
` .............................................................................................. 320
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`12.8.3.18 Claim 23 ................................................................................................... 321
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`12.8.3.18.1 “The electronic vaping device of claim 22, wherein the
`controller is further configured to output an actuation signal to
`the heater to actuate the heater in response to detecting the
`draw action” ......................................................................... 321
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`12.8.3.19 Claim 24 ................................................................................................... 321
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`12.8.3.19.1 “The electronic vaping device of claim 16, wherein the
`controller is further configured to detect a blowing action at a
`mouth-end piece of the electronic vaping device based on the
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`variation in an oscillation frequency of the oscillation circuit;
`and the controller does not actuate the heater in response to
`detecting the blowing action” ............................................... 321
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`12.8.3.20 Claim 25 ................................................................................................... 321
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`12.8.3.20.1 “The electronic vaping device of claim 16, wherein a
`capacitance value of the capacitor varies in response to the
`airflow through the electronic vaping device caused by both a
`draw action and blowing action at a mouth-end piece of the
`electronic vaping device” ..................................................... 321
`
`12.8.3.20.2 “the variation in an oscillation frequency of the oscillation
`circuit is based on a variation in the capacitance value of the
`capacitor” .............................................................................. 323
`
`12.8.3.20.3 “the controller is further configured to determine rate and
`direction of the airflow through the electronic vaping device
`based on the variation in an oscillation frequency of the
`oscillation circuit, and selectively actuate the heater based on
`the rate and direction of the airflow through the electronic
`vaping device” ...................................................................... 323
`
`12.9 Direct Infringement ............................................................................................................... 324
`
`12.10 Induced Infringement ............................................................................................................ 331
`
`12.11 Contributory Infringement .................................................................................................... 337
`
`12.12 Non-infringing Alternatives / Design Arounds ..................................................................... 344
`
`12.12.1 '545 Patent ................................................................................................................ 345
`
`12.12.2 '374 Patent ................................................................................................................ 350
`
`12.13 Third-Party Products ............................................................................