`571-272-7822
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`Paper No. 9
`Entered: December 1, 2017
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`FITBIT, INC.
`Petitioner,
`
`V.
`
`VALENCELL,INC.
`Patent Owner.
`
`IPR2017-01553
`Patent 8,989,830 B2
`
`Before BRIAN J. MCNAMARA, JAMESB. ARPIN,and
`SHEILA F. McSHANE,Administrative Patent Judges.
`
`McSHANE,Administrative Patent Judge.
`
`DECISION
`
`Institution of Inter Partes Review and Grant of Motion for Joinder
`37 CFR. § 42.108; 37 C.F.R. § 42.122(b)
`
`
`
`IPR2017-01553
`Patent 8,989,830 B2
`
`I.
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`INTRODUCTION
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`Petitioner Fitbit, Inc. (“Fitbit”) filed a Petition requesting inter partes
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`review of claims 1—6, 8-16, and 18—20 of U.S. Patent No. 8,989,830 B2
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`(Exhibit 1001, “the ’830 patent’). Paper 2 (“Petition”or “Pet.”). Fitbit also
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`filed a Motion for Joinder under 35 U.S.C. § 315(c) requesting joinder of the
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`present proceeding with Apple Inc. v. Valencell, Inc., Case IPR2017-00317.
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`Paper 3 (“Mot.”). Valencell, Inc. (“Patent Owner’’) filed a Preliminary
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`Response and Opposition to Petitioner’s Motion for Joinder. Paper 8
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`(“Prelim. Resp.”); Paper 7 (“Opp.”).
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`Case IPR2017-00317 challenges claims 1-6, 8-16, and 18—20 ofthe
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`°830 patent. Weinstituted trial in Case IPR2017-00317 on June 5, 2017, on
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`the groundsthat: (1) claims 1-4 and 11-14 would have been obvious over
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`Goodman(Ex. 1007); (2) claims 5 and 15 would have been obvious over
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`Goodmanand Hicks (Ex. 1008); (3) claims 6 and 16 would have been
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`obvious over Goodman, Hannula (Ex. 1009), and Asada (Ex. 1005);
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`(4) claims 8, 9, 18, and 19 would have been obvious over Goodmanand
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`Asada; and (5) claims 10 and 20 would have been obvious over Goodman
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`and Delonzor(Ex. 1010). IPR2015-00317, Paper 7. These same grounds
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`are those on-whichFitbit now seeksinstitution of inter partes review of
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`claims 1—6, 8-16, and 18—20 in this case. Pet. 7.
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`In its Opposition to the Motion for Joinder, Patent Owner contends
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`that the Motion should be denied because inter partes reviews are
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`unconstitutional, as addressed in Oil States Energy Services LLC v. Greene’s
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`Energy Group, presently pending before the U.S. Supreme Court. Opp. 2-4,
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`6; see Oil States Energy Services LLC v. Greene’s Energy Group, LLC, No.
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`16-712, 137 S. Ct. 2293, 2017 WL 2507340 (June 12, 2017). Patent Owner
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`additionally asserts that Fitbit filed its Petition more than one yearafter
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`
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`IPR2017-01553
`Patent 8,989,830 B2
`service of an infringement complaint, and institution of inter partes review
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`underthis circumstanceis impermissible under 35 U.S.C. § 315(b). Jd.at 5.
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`II. DISCUSSION
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`Based on authority delegated to us by the Director, we have discretion
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`to join an inter partes review to a previously instituted inter partes review.
`35 U.S.C. § 315(c). Section 315(c) provides,in relevant part, that “[i]f the
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`Directorinstitutes an inter partes review, the Director, in his or her
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`discretion, may join as a party to that inter partes review any person who
`properly files a petition under section 311.” Jd. When determining whether
`to grant a motionfor joinder we consider factors such as timing and impact
`ofjoinderonthetrial schedule, cost, discovery, and potential simplification
`of briefing. Kyocera Corp. v. SoftView, LLC, Case IPR2013-00004,slip op.
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`at 4 (PTAB April 24, 2013) (Paper 15).
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`Fitbit filed the Petition and Motion for Joinder in the present
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`proceeding on June 9, 2017, whichis timely filed within one month after we
`instituted trial in IPR2017-00317. 37 C.F.R. § 42.122(b). Fitbit’s Petition is
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`based only on identical grounds, with substantially identical evidence and
`argument, on which weinstituted inter partes review in Case IPR2017-
`00317. Mot. 1. The Petition, therefore, is based on “same claims, prior art,
`and groundsfor unpatentability” raised in Case IPR2017-00317. Jd. Fitbit
`proposes to streamline discovery and briefing by taking an “understudy
`role.” /d. at 1, 6-7. Fitbit asserts that it relies upon the same expert and a ©
`substantially identical expert declaration as Case IPR2017-00317, so only a
`single deposition of the expert would be required.
`/d. at 6. Fitbit also
`alleges, that as long as Apple remains an active party:
`(1) all Fitbit filings
`will be consolidated with those of Apple; (2) Fitbit will not be permitted to
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`
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`IPR2017-01553
`Patent 8,989,830 B2
`raise new groundsnotalreadyinstituted; (3) Fitbit will be bound by any
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`agreement between Patent Owner and Apple concerning discovery and/or
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`depositions; and (4) Fitbit shall not receive any additional deposition time
`beyondthat permitted for Apple. /d. at 7. With all this, Fitbit contends that
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`its joinder will not negatively impact the existing trial schedule in Case
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`IPR2017-00317. Id. at 5-6.
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`Fitbit’s Petition raises the same grounds and substantially identical
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`arguments to those presented by Apple in Case IPR2017-00317. Pet. 1-60.
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`Patent Owner’s Preliminary Responsealso has substantially identical
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`arguments against institution to those presented in its Preliminary Response
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`in Case IPR2017-00317. Prelim. Resp. 1-48.
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`Someof Patent Owner’s arguments in opposition to the Motion are
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`based upontheconstitutionality of inter partes review generally. At this
`time, no court has foundinter partes review unconstitutional. The matteris
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`before the U.S. Supreme Court, and, consequently, Patent Owner’s
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`argumentsas to denial of this Petition on this basis are premature.
`Further, we do not agree with Patent Owner’s argumentthat § 315(b)
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`bars institution of inter partes review under the circumstances here. Section
`315(b) states that the one year bar “shall not apply to a request for joinder
`under subsection (c),” and § 315(c) authorizes, at our discretion,joinderof a
`party “to that [instituted] inter partes review any person whoproperly files a
`petition.” See Dell Inc. v. Network-1 Security Solution, IPR2013-00385, slip
`op. at 4-6 (PTAB July 29, 2013)(Paper 17); see also Nidec Motor Corp.v.
`Zhongshan Broad Ocean Motor Co. Ltd., 868 F.3d 1013, 1020 (Fed.Cir.
`2017) (Dyk,J., concurring) (“Thus, the exceptionto the time bar for
`‘request[s] for joinder’ wasplainly designed to apply where time-barred
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`
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`IPR2017-01553
`Patent 8,989,830 B2
`Party A seeksto join an existing IPR timely commenced by Party B when
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`this would not introduce any newpatentability issues.”).
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`Here, Fitbit’s Motion for Joinder has been timely filed and the Petition
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`has been properly filed. And, in view of the foregoing, we find that joinder
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`based uponthe conditions stated by Fitbit in its Motion for Joinder will have
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`little or no impact on the timing, cost, or presentation ofthetrial on the
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`instituted ground. Thus, the Motion for Joinder is granted.
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`Ill. ORDER
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`Accordingly,it is
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`ORDEREDthattrial is instituted in IPR2017-01553 asto the
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`following grounds: claims 14 and 11—14 would have been obvious over
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`Goodman; claims 5 and 15 would have been obvious over Goodman and
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`Hicks; claims 6 and 16 would have been obvious over Goodman, Hannula,
`
`and Asada; claims 8, 9, 18, and 19 would have been obvious over Goodman
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`and Asada; and claims 10 and 20 would have been obvious over Goodman
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`and Delonzor—the samegrounds on which weinstituted trial in IPR2017-
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`00317;
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`FURTHER ORDEREDthatFitbit’s Motion for Joinder with
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`IPR2017-00317 is granted;
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`FURTHER ORDEREDthat IPR2017-01553 is terminated and joined
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`to IPR2017-00317, pursuant to 37 C.F.R. §§ 42.72, 42.122, based on the
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`conditions stated in Fitibit’s Motion for Joinder (Paper3);
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`FURTHER ORDEREDthat the Amended Scheduling Order in place
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`for IPR2017-00317 (Paper 25) shall govern the joined proceedings;
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`FURTHER ORDEREDthatall future filings in the joined proceeding
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`are to be madeonly in IPR2017-00317;
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`
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`IPR2017-01553
`Patent 8,989,830 B2
`FURTHER ORDEREDthatthe case caption in IPR2017-00317 for all
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`further submissions shall be changed to add Fitbit as a named Petitioner, and
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`to indicate by footnote the joinder of IPR2017-01553 to that proceeding,as
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`indicated in the attached example; and
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`FURTHER ORDEREDthat a copy of this Decision shall be entered
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`into the record of IPR2017-00317.
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`
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`IPR2017-01553
`Patent 8,989,830 B2
`
`PETITIONER:
`
`Harper Batts
`Jeremy Taylor
`BAKERBotts, L.L.P.
`harper.batts@bakerbotts.com
`jeremy.taylor@bakerbotts.com
`
`PATENT OWNER:
`
`Justin B. Kimble
`Nicholas C Kliewer
`BRAGALONE CONROY PC
`JKimble-IPR@bcpc-law.com
`nkliewer@bcpc-law.com
`
`
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`IPR2017-01553
`Patent 8,989,830 B2
`Example Case Caption for Joined Proceeding
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`APPLEINC. and FITBIT, INC.,
`Petitioner,
`
`Vv.
`
`VALENCELL, INC.,
`Patent Owner.
`
`Case IPR2017-00317
`Patent 8,989,830 B2!
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`' Case IPR2017-01553 has been joined with this proceeding.
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`8
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