throbber
trials@uspto.gov
`
`571-272-7822
`
`
`
`
`
`
`IPR2015-01586, Paper No. 34
`IPR2015-01592, Paper No. 35
`October 19, 2016
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`HYDRITE CHEMICAL CO.,
`Petitioner,
`
`v.
`
`SOLENIS TECHNOLOGIES, L.P.,
`Patent Owner.
`____________
`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`____________
`
`Held: September 13, 2016
`____________
`
`
`
`BEFORE: ERICA A. FRANKLIN, DONNA M. PRAISS, and
`JENNIFER MEYER CHAGNON, Administrative Patent Judges.
`
`
`
`
`
`The above-entitled matter came on for hearing on Tuesday,
`September 13, 2016, commencing at 9:00 a.m., at the U.S. Patent
`and Trademark Office, 600 Dulany Street, Alexandria, Virginia.
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`CHRISTOPHER J. FAHY, ESQUIRE
`RICHARD T. ROCHE, ESQUIRE
`JOEL AUSTIN, ESQUIRE
`Quarles & Brady, LLP
`300 North LaSalle Street
`Suite 4000
`Chicago, Illinois 60654-3422
`
`
`
`ON BEHALF OF PATENT OWNER:
`
`
`CHARLIE C. LYU, ESQUIRE
`Baker Hostetler
`2929 Arch Street
`Cira Centre, 12th Floor
`Philadelphia, Pennsylvania 19104-2891
`
`
`
` 2
`
`
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`
`
`
`P R O C E E D I N G S
`- - - - -
`JUDGE CHAGNON: Good morning, everyone. This
`is the final hearing for two proceedings between petitioner,
`Hydrite Chemical Company, and patent owner, Solenis
`Technologies, L.P. The proceeding numbers are IPR2015-01586
`for U.S. patent number 8,841,469 and IPR2015-01592 for U.S.
`patent number 8,962,059.
`I am Judge Chagnon and I have Judge Franklin here
`with me in Alexandria, and Judge Praiss is joining us remotely
`today on the screen behind us. Counsel, could you please
`introduce yourselves and let us know who will be presenting
`today, starting with petitioner.
`MR. FAHY: Good morning, Your Honors. For
`petitioner Christopher Fahy with Quarles & Brady. I will be
`presenting. I'm here with lead counsel, Richard Roche, backup
`counsel Joel Austin, and the general counsel of Hydrite, David
`Beine.
`
`MR. LUCCI: Judge, my name is Joe Lucci of Baker
`Hostetler. I'll be representing the petitioner [sic]. With me today
`are my colleagues, David Farsiou and Charlie Lyu.
`JUDGE CHAGNON: Thank you so much. So today
`please take into consideration when you are giving your
`presentations that Judge Praiss is appearing remotely. So please
`
` 3
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`make sure to identify the demonstrative exhibits that you will be
`referencing clearly and specifically, for example, with the slide
`number. It will help ensure clarity of the record as well as ensure
`that Judge Praiss is able to follow along with the demonstratives.
`As you know, pursuant to our order of August 10th,
`each party has one hour of time today total for presenting. You
`can allocate your time between the two cases as you see fit. We
`will be entering the same transcript into the record for both cases.
`Petitioner has the burden to prove unpatentability of the
`original claims. So petitioner will present first today followed by
`patent owner, and petitioner may reserve some time for rebuttal if
`desired.
`I also want to remind the parties today that we have
`some confidential information that was filed under seal in these
`cases. The hearing is public, as you know, so keep that in mind
`during your presentations. If there's any confidential information
`that will be discussed, please just let us know ahead of time. But
`I think that in these cases we should be able to discuss the
`confidential information without actually revealing it. You can
`just refer us to those cites in the record and we can look it up here
`on our screens. And if we need to discuss it, we can address that
`when we get to that point.
`All right. So Mr. Fahy, would you like to reserve any
`time for rebuttal today?
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`
` 4
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`
`MR. FAHY: Yes, Your Honor. I actually don't expect
`my opening presentation to take more than 15 or 20 minutes.
`JUDGE CHAGNON: Okay. How about I set the time
`for 30 for you just so we have something on the clock?
`MR. FAHY: You have heard people say that before.
`JUDGE CHAGNON: So you can get started whenever
`you are ready.
`MR. FAHY: Again, my name is Christopher Fahy. I'm
`arguing on behalf of Hydrite Chemical Company, the petitioner
`in both the IPR proceedings here today. And I'll begin, Your
`Honors, by noting that petitioner did not request oral argument
`for either of these proceedings. In fact, we don't believe it's
`necessary. We believe that the papers adequately describe and
`address both parties' positions. But in view of the patent owner's
`request for oral argument, we are more than happy to take some
`of our allotted time to go over a few of the issues that remain
`before the parties and of course, answer any questions that Your
`Honors have for us. But that is why I don't anticipate taking up a
`whole lot of time rehashing what is already in the papers here this
`morning.
`Referring to slide 2, I'm sure Your Honors are familiar
`with the institution decisions in these proceedings. There are two
`patents at issue. One is the subject of each separate IPR
`proceeding. But the patents are extraordinarily similar. In fact,
`they are so similar that there was an interference proceeding
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 5
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`between them in District of Delaware. All the claims of both
`patents relate to methods for recovering oil in a corn-to-ethanol
`process.
`You can see on slide 2 that we have broken up our
`arguments as we did in the petitions under two distinct lines of
`reasonings. And to be consistent with our petitions and the rest of
`papers in this proceeding, I'm going to refer to those as we did in
`the papers as the Bonanno line of reasoning, the Bonanno
`grounds and the Winsness grounds. It's important to note that
`these are two distinct lines of reasoning. One of skill in the art
`addressing the Bonanno grounds would recognize that separating
`water from oil in Bonanno to recover oil in that process. One of
`skill in the art looking at the Winsness grounds is looking at the
`problem of breaking an emulsion in a centrifuge in an oil
`recovery process.
`What we are going to see here today, I think, in both
`presentations is that the simplicity of the patent claims at issue is
`at odds with the supposed technical requirements and complexity
`that Your Honors saw in patent owner's papers and will likely see
`in their petition today. Patent owner has pointed to complex
`supposed functionality requirements for the prior art in the
`systems at issue. They have pointed to supposed complex
`requirements for the efficacy of oil recovery. But frankly, we
`don't believe that any of these complexities have any place in
`these proceedings because they are just not found in the claims at
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 6
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`issue. The claims in fact, are very broad and they read on the
`prior art and they claim nothing more than a known off-the-shelf
`chemical used in a known process.
`Here on slide 3 we have a high-level roadmap, kind of
`the reasons why the Board should find the claims of the patents at
`issue unpatentable. First, nothing in patent owner's response
`changes the reasoning provided by the Board and the decisions to
`institute. The patent owner is not contending that the prior art
`fails to contain every element of the claims. In fact, patent owner
`does not even present a claim-by-claim analysis for each
`dependent claim. They lump groups of them together.
`Secondly, many of patent owner's arguments miss the
`point entirely. And we'll see this, for example, and we talk about
`the ICI reference. And I have a feeling from seeing the slides that
`patent owner is going to spend quite a bit of time on the ICI
`reference today. But not only is patent owner wrong about what
`ICI teaches, but ICI was not relied upon in the manner patent
`owner is asserting.
`And finally, patent owner's attempt to salvage the broad
`claims through purported evidence of secondary consideration
`fails as well.
`A good illustration of the breadth of the claims we are
`dealing with here today is found on slide 4 which shows claim 1
`of the '469 patent. Claim 1 is the only independent claim in the
`'469 patent. And this claim, as you can see, includes one method
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 7
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`step: Add at least one chemical additive to a corn-to-ethanol
`process stream.
`Now, you are going to see some fairly technical
`chemical verbiage in the claims today. But make no mistake
`about it, there's no dispute that the chemicals we are talking about
`in these claims are in the prior art. The functionalized polyol of
`claim 1 and the variations claimed in the dependent claims are
`commercially available, preexisting, off-the-shelf chemicals.
`There's also no dispute that the claimed chemicals are in the prior
`art at the particular specifications of moles, weights and
`temperatures that you see in some of the dependent claims.
`Notably, there's no functionality requirement in the
`claims themselves. We think this is noteworthy because the '469
`patent claims do not even link the addition of the chemical
`additive to the recovery of oil whatsoever. Certainly the claim
`provides no details on how exactly the chemical must work or
`how much oil must be recovered, for example.
`Turning to the distinct lines of reasoning on slide 5, we
`have the Bonanno grounds as it relates to the '469 patent. These
`are grounds 1 through 5. The Bonanno reference includes
`everything that you need to invalidate the claims or at least the
`independent claim 1 of the '469 patent. It teaches everything.
`Bonanno teaches a process that's shown in Figure 3 of
`the Bonanno reference. But more explicitly, Bonanno details
`what that process is in column 2, specifically column 2, lines 5 to
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 8
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`45. And that Bonanno process includes explicitly as step 7 of the
`process recovering any natural oil. That's at lines 29 and 30 of
`column 2 of Bonanno.
`Bonanno goes on in that same column to teach the use
`of a surfactant in that process and further even details a number
`of advantages of the process that includes recovering oil in the
`use of a surfactant. Later in column 5, Bonanno goes on to teach
`that the surfactant in the Bonanno process can be the claimed
`polyoxyethylene sorbitan fatty acid esters sold under the trade
`name TWEEN by ICI. And that's column 5 of Bonanno, lines 8
`to 10. And then Bonanno provides a few examples of the
`process. And one of the examples can be found in example 2.
`That's column 16, lines 50 to 56 of Bonanno. In that example,
`you see the processing of corn stillage.
`So that and the knowledge, those disclosures and the
`knowledge of one of skill is all you need to arrive at the claimed
`invention with a reasonable expectation of success. And an
`important point is that reasonable expectation of success is in
`Bonanno itself. The law on this issue is well settled. A
`reasonable expectation of success analysis must take into account
`the full scope of the claimed invention. It is legal error to fail to
`do so. And that is the Allergan v. Apotex case that is cited in our
`reply briefs at pages 3 and 4.
`Claim 1 states recovering oil. So the question is, would
`one of skill in the art have a reasonable expectation of recovering
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 9
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`oil that's explicitly named in the Bonanno process using the
`claimed surfactant that's explicitly defined as a possible surfactant
`in the Bonanno process in the corn stillage example 2 of
`Bonanno. And the answer is yes.
`Again, Bonanno also enumerates five advantages of the
`process within the patent itself at column 2. That's at lines 34 to
`45. And separately Dr. Rockstraw, petitioner's expert witness
`who provided a declaration at Exhibit 1005 to the petition,
`testified that there were overall market demands and incentives
`driving increased efficiencies in oil recovery prior to the date of
`the patent.
`And of course, the ICI reference further confirms that
`one of skill in the art would have a reasonable expectation of
`success in applying the teachings of Bonanno. ICI is talking
`about the HLB system. The HLB system is actually even
`referenced in Bonanno itself, column 4, lines 58 to 59, and was
`known as early as the 1950s for determining which surfactants to
`use in systems such as these.
`Slide 6 has the Winsness grounds, grounds 6 through 10
`for the '469 patent. Winsness identifies the problem of an
`emulsion in a centrifuge. It also identifies specific motivations to
`improve the process in paragraph 7 of Exhibit 1012, namely the
`efficiency of recovering oil.
`Alther provides a solution to the problem. Break the
`emulsion. In fact, Alther also discloses specifically adding a
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 10
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`surfactant to a centrifuge to break the emulsion. It goes further
`and explicitly selects the surfactant. It names three surfactants
`that are good for breaking an emulsion, including the claimed
`polysorbate 80.
`The reasonable expectation of success, again, is in the
`combination of Winsness and Alther themselves. Specifically,
`Alther already selects the surfactant and teaches the advantage
`which it is the function of emulsion breaking. ICI provides
`additional support to show that there's more than a reasonable
`expectation of success in arriving at the claimed invention.
`Again, Dr. Rockstraw testified regarding the Winsness grounds as
`well that there were increased market demands for usable oil
`prior to the date of the patent.
`JUDGE FRANKLIN: Counsel, can I ask you a
`question. This is actually coming from patent owner's response in
`1592, the first page, where they characterize petitioner's argument
`as requiring a person of skill in the art to select the claim
`compounds based solely on their HLB. Is that an accurate
`characterization of your position?
`MR. FAHY: No, it is not. It's clear in our petition,
`that's what I was referring to on my second slide, I believe, that
`they are mischaracterizing our position. We are not saying that
`one of skill in the art selects the surfactant solely on the HLB. In
`fact, we are saying that the surfactant is selected within Bonanno,
`between or within Alther, polysorbate 80 for some of dependent
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 11
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`claims within Martin. So ICI is not required to select the
`surfactant. What ICI brings to the table is the description of that
`HLB system, and then one of skill would have more than a
`reasonable expectation of success in the selection of that
`surfactant.
`JUDGE FRANKLIN: So in looking at Bonanno, does
`one of skill in the art require any other skill or knowledge with
`respect to selecting a surfactant that would work?
`MR. FAHY: It doesn't when you look at it's
`commensurate with the scope of the claim at issue. The claim
`does not provide, again, any functionality, any baseline to make
`that judgment. So Bonanno's disclosure of TWEEN as one of the
`surfactants -- Bonanno lays it out just very logically in nice steps.
`Here is the process early in the patent in Step 2, recovering oil
`Step 7, use a surfactant in that same column 2. It goes on to list a
`number of possible surfactants that you could use in this process
`including the TWEENs. Then it goes on to give examples of how
`those might be used, one of them corn stillage.
`JUDGE FRANKLIN: So then on that same page where
`patent owner is, again, characterizing Dr. Rockstraw's testimony
`as admitting that the HLB is not an accurate predictor, is it your
`position that that testimony is not relevant?
`MR. FAHY: Partly. It's not entirely accurate. If you
`look at the remainder of Dr. Rockstraw's testimony surrounding, I
`think, the line that they cherry-picked out of there, he gives a
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 12
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`clear description of exactly how one of skill in the art -- and we
`put this in our reply as a block quote of his testimony, how one of
`skill in the art would use the HLB system practically in reality.
`He is acknowledging that, of course, I'm not just going to look at
`one particular thing. So it's irrelevant in the sense that your
`previous question, we are not relying on only the HLB to select a
`surfactant. We don't need it at all, in fact. It's to show more than
`a reasonable expectation of a success.
`But it's also a bit of mischaracterization in that
`Dr. Rockstraw testified in his declarations and in his deposition
`very clearly and exactly how one of skill in the art -- and very
`credibly, in my opinion -- would use the HLB system. And he's
`coming to the table, as he says, not only with that, but with his
`knowledge of one of skill in the art. And he goes step by step
`how he would get to a very small pool of surfactants.
`JUDGE FRANKLIN: Thank you.
`MR. FAHY: So turning back to slide 6, again, the
`reasonable expectation of success is there in Alther. It discloses
`the surfactant and teaches the advantage of breaking the emulsion
`with that surfactant.
`Slide 7 is really just an outline of Hydrite's reply to
`patent owner's response at a high level that I will address as
`needed in my rebuttal time. And if there are no other questions
`on the '469, I'll turn to the '059 patent.
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`
` 13
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`
`Slide 8 shows claim 1, one of two independent claims in
`the '059 patent. And again, you have a very broad claim. Mixing
`a known surfactant with the byproduct stream, centrifuging and
`separating oil. Solenis does not claim that they invented the
`ethanol production process. They are not saying they invented
`ethoxylated sorbitan esters. They are not saying they invented
`centrifugation in an ethanol process or even the idea of separating
`oil from an ethanol byproduct stream. Again, you see no
`functional requirements. In fact, the function of mixing an
`ethoxylated sorbitan ester is not linked to the recovery of oil here
`either. And the step of separating the oil does not claim how
`much oil is separated or even that the oil separation is somehow
`enhanced or increased. It just doesn't say in the claim how it
`works.
`
`Now, there's one other independent claim in the '059
`patent, and that's claim 13. Claim 13 is really just claim 1 with a
`couple -- so claim 1 mixing a known surfactant, centrifuging and
`separating the oil. Claim 13 is very similar. Just adds a couple
`more process parameters that we have also shown in our petitions
`are in the prior art.
`So again, we've got independent claims that are nothing
`more than extracting oil with commercially available oil
`concentrator. And there's no dispute that similarly the chemical
`verbiage used in the '059 patent is in the prior art references.
`These are known off-the-shelf chemicals.
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 14
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`
`Slide 9 shows the Winsness grounds, grounds 1 through
`6 as they relate to the '059 patent. And these are the same
`references that I was just talking about. It's the same logic. We
`are just picking up some of the different elements that are specific
`to the '059 patent such as referred in slide 9, the pH and the
`temperature, things like that. Again, Winsness identifies the
`problem of emulsion and centrifuge and a motivation to increase
`efficiency. Alther teaches the solution to the problem. ICI
`provides additional support for the reasonable expectation of
`success using the HLB system that one could de-emulsify the
`emulsion.
`Slide 10 shows the Bonanno grounds again, grounds 7
`through 9 for the '059 patent. Again, everything is in Bonanno
`itself. The reasonable expectation of success is found within
`Bonanno, and Bonanno even discloses the specific advantages of
`a process, with ICI playing the role of an additional basis for
`finding a reasonable expectation of success in applying the
`teachings of Bonanno.
`Slide 11 shows our high-level outline of our rebuttal
`that again I'll refer to in my reserved time if needed.
`And slide 12 is really an outline of petitioner's reply
`briefs responding to the purported secondary consideration
`evidence that patent owner raised in its response. This is -- I have
`seen nothing new in the slides that I think we are going to see
`from patent owner. So everything is in the reply brief where we
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 15
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`have cited pages 22 to 25 of both replies. I'm more than happy to
`answer any questions on it, but I don't really see a reason to just
`regurgitate what we wrote in the papers.
`So if there are no other questions, that's all I have for
`our affirmative presentation.
`JUDGE CHAGNON: Can we go back quickly to the
`'469 patent. Can you address patent owner's arguments that they
`set forth in their papers about dependent claim 16 and the
`argument that the disclosure in Bonanno that the petitioner relies
`on is, I guess, sort of the opposite of what the claim says, if I can
`characterize their argument there.
`MR. FAHY: Sure. Again, this is kind of another one of
`these like ICI, a bit of a strawman argument and one of these
`areas where your patent owner’s trying to create technical
`complexities that clearly don't exist in the claim and aren't
`necessary for one of skill in the art using the teachings of
`Bonanno to get to the claim.
`It doesn't -- although we disagree certainly with how
`patent owner thinks Bonanno works, and you've got
`Dr. Rockstraw for Hydrite saying it works one way, the
`underlying molecular interactions, and you've got Dr. Kohl
`saying it works another way. What we can all agree on, because
`it's explicitly stated in Bonanno, is that Bonanno is separating oil
`from water at the end of the day. How it gets there, we believe
`Dr. Rockstraw is right. I'm sure patent owner believes Dr. Kohl
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 16
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`is right. But it doesn't matter for finding the claims unpatentable.
`Bonanno very clearly states it's increasing dehydration. At the
`end of the day, regardless of how it actually does it, it is taking
`water out. It is separating water from oil.
`Again, Bonanno selects the surfactant by teaching the
`advantages of its use. The dehydration process of Bonanno
`includes recovering any natural oil. The surfactants are listed
`there. Those are the claimed surfactants. So the argument that
`you are referring to by patent owner is really nothing more than
`trying to create a dispute where none exists.
`JUDGE CHAGNON: Thank you.
`MR. FAHY: Thank you, Your Honors.
`MR. LUCCI: Good morning. The reason we are all
`here this morning is that the technology embodied in Solenis'
`Dimension products has been very successful. If that technology
`hadn't been successful, Hydrite would not have invested the time
`and money required to challenge the patents. And it's the success
`of that technology, as demonstrated by Hydrite's investment in
`these proceedings, that objectively rebuts the very subjective
`allegations that the patent claimed somehow would have been
`obvious to a person of ordinary skill in the art.
`These IPRs beg a simple yet unanswered question.
`Why? More specifically, why would a person of ordinary skill in
`the art who significantly would not have had knowledge of the
`claimed invention already, why would they have selected the
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 17
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`references upon which Hydrite has relied and why would they
`have modified those references’ teachings in the manner that has
`been proposed? The answer is that no one of ordinary skill who
`did not already have knowledge of the claimed inventions would
`have done that. In fact, it's only with the improper use of
`hindsight that the claimed inventions provide Hydrite the ability
`to piece together an argument based on these selected teachings
`of the references.
`If you listen to Hydrite, what we are here doing today is
`nothing more than an arts and crafts exercise. We have the
`claims and we cut the claims into sort of a jigsaw puzzle into their
`individual elements. And we go out in the prior art and we go
`find those elements no matter where they appear, no matter the
`context in which they appear, and we run back and we wedge
`them into the claim.
`JUDGE FRANKLIN: Is that what we are doing at least
`with respect to independent claim 1 of the '469 patent? My
`understanding is petitioner's argument was that we can look at
`Bonanno and because the claim is so broad or as they phrased it,
`overly broad, we can rely on that reference alone.
`MR. LUCCI: I understand that argument. There's two
`points I have on that, Your Honor. One is that even within the
`bounds of Bonanno there are many selections that need to be
`made, many modifications that need to be made. As we
`mentioned in our briefing, when you consider all the surfactants
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 18
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`and blends of surfactants -- because Bonanno teaches blends,
`there's thousands upon thousands of choices that one would
`make.
`
`JUDGE FRANKLIN: But what modifications would be
`required?
`MR. LUCCI: You would have to select one that --
`JUDGE FRANKLIN: Is that a modification?
`MR. LUCCI: Yes, it is a modification, Your Honor,
`because the teaching of Bonanno isn't directed to breaking an
`emulsion. That's the central theme. You see in petitioner's initial
`papers in the petitions this theme of one would want to break the
`emulsion and you would use ICI to do it. You see significantly in
`the reply brief how they back away from that. And it's no small
`measure because we pointed out the errors in that logic. In fact,
`the errors were largely adopted by Dr. Rockstraw during his
`deposition.
`And on the point you just made about Bonanno's
`teachings, it's interesting that Dr. Rockstraw said in his testimony
`that he himself would not rely upon Bonanno alone to make the
`selections that would be necessary to get to the claimed
`inventions. He said he would have to rely upon another teaching
`tool, his words, teaching tool such as ICI.
`JUDGE FRANKLIN: Are you referring to dependent
`claims or are you referring to the independent claims?
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`
` 19
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`
`MR. LUCCI: I'm referring to the independent claims
`and the dependent claims. The teaching of Bonanno is so broad
`that you would have to make selections to get to the claimed
`invention.
`JUDGE FRANKLIN: Would that be beyond the skill in
`
`the art?
`
`MR. LUCCI: I think -- I don't know that it would
`necessarily be beyond the skill in the art, Your Honor. It
`certainly is -- there are so many choices there that it's not
`something that would have been obvious to a person of ordinary
`skill in the art.
`In particular with Bonanno, I was going to talk about
`Bonanno later, but I'll discuss it a little bit here. Step back and
`look at -- well, let me say the broader concept, if I may. What we
`need to do -- and this is a difficult exercise because we've all been
`affected by the claim language. What we need to do is we need
`to step back in time and put ourselves in the shoes of a person of
`ordinary skill who is working in this field who didn't have that
`benefit. So we have to say to ourselves, if you didn't already
`know about the claim, what would you have done? Would you
`have picked up Bonanno? Would you have picked up Winsness?
`Would you have picked up ICI? And if you did pick them up --
`and it's our position, patent owner's position that you wouldn't
`have picked them up. But if you did pick them up, what would
`you have taken away from them in their entire teaching in
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 20
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`context? Because the context here is very, very important. It's
`easy to take a look at the elements in these references and wedge
`them into the claim. I think that's the case even for Bonanno and
`even for claim 1.
`So again, the context is very important. So let's talk a
`little bit about the context of Bonanno. Look at Bonanno's title.
`Bonanno's title is talking about -- I apologize I have been taken a
`little bit off track here. If you take a look at Bonanno, it's talking
`about, I believe, an apparatus for recovering -- it's an apparatus
`for recovering dry solids from aqueous solids mixtures. So if
`someone was working with corn stillage and they wanted to
`recover more oil, would they have picked up a document whose
`title is Apparatus For Recovering Dry Solids From Aqueous Solid
`Mixtures? No. That's the testimony of Dr. Kohl.
`Dr. Kohl, by the way, who has been working in this
`field for a very long time, nearly his entire career, we mention in
`our briefing how Dr. Rockstraw, for all the chemical engineering
`education that he has, does not have experience in this field. So
`it's interesting Dr. Rockstraw says -- counsel mentioned that there
`would have been a demand for oil. I think if you look at the
`testimony, Dr. Rockstraw is pretty clear, he really doesn't know
`what was going on in the industry.
`But Bonanno, again, you pick up a reference and it talks
`about recovering aqueous solids. So if you were seeking to
`recover oil, would you look at that? And look at the way it does
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
` 21
`
`
`
`
`
`

`
`Case IPR2015-01586, Patent 8,841,469 B2
`Case IPR2015-01592, Patent 8,962,059 B1
`
`that. What it does is it adds oil. So what they want to do is they
`have this aqueous mixture of solids that's wetted, and they
`eventually want to recover that. And the way

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket