`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`ACER INC., ACER AMERICA CORPORATION, ASUSTEK
`COMPUTER INC., ASUS COMPUTER INTERNATIONAL, GOOGLE
`INC., MICROSOFT CORPORATION, and MICROSOFT MOBILE INC.,
`Petitioner,
`
`v.
`
`KONINKLIJKE PHILIPS N.V.,
`Patent Owner.
`____________
`
`
`
`Case IPR2017-00386, IPR2017–01766
`Patent RE44,913
`____________
`
`Record of Oral Hearing
`Held: February 28, 2018
`____________
`
`
`
`
`Before DAVID C. McKONE, ROBERT J. WEINSCHENK, and KAMRAN
`JIVANI, Administrative Patent Judges.
`
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`Case IPR2017-00386, IPR2017–01766
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`AARON P. MAURER, ESQUIRE
`Williams & Connolly, LLP
`725 12th Street, N.W.
`Washington, D.C. 20005
`
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`JUSTIN J. OLIVER, ESQUIRE
`JASON M. DORSKY, ESQUIRE
`Fitzpatrick, Cella, Harper & Scinto
`975 F Street, N.W.
`Washington, D.C. 20004-1462
`
`
`
`The above-entitled matter came on for hearing on Wednesday,
`
`February 28, 2018, commencing at 9:00 a.m., at the U.S. Patent and
`Trademark Office, 600 Dulany Street, Alexandria, Virginia.
`
`
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`P R O C E E D I N G S
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`JUDGE WEINSCHENK: Good morning, everyone. This is a
`hearing for IPR2017-00386. Let's start with appearances. And when you
`make your appearance, please step up to the center podium. Who do we
`have for petitioner?
`MR. MAURER: Good morning, Your Honors. Aaron Maurer on
`behalf of petitioner, Google, Inc. With me here today is my colleague, Chris
`Suarez, and also John Colgan from Google.
`MR. McKEEVER: Good morning, Your Honor. Patrick
`McKeever on behalf of the Microsoft petitioners in the joined proceedings.
`JUDGE WEINSCHENK: Who do we have for patent owner?
`MR. OLIVER: Good morning, Your Honor. Justin Oliver of
`Fitzpatrick Cella. With me at counsel table is Jason Dorsky, also of
`Fitzpatrick Cella, on behalf of patent owner.
`JUDGE WEINSCHENK: Thank you. So just a few housekeeping
`matters, first. As you can see, Judges McKone and Jivani are appearing
`remotely. So when you make your presentations, please step up to the center
`podium so they can hear you. Please also refer to any slide numbers in your
`demonstratives so they can follow along.
`Per our order, each side will have 45 minutes to make their
`presentation. We'll start with petitioner and then follow up with patent
`owner. Petitioner, before you begin, just let us know how much time, if any,
`you would like to reserve for rebuttal. You can begin when you are ready.
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`MR. MAURER: Good morning, Your Honors. I would like to
`reserve 15 minutes for rebuttal.
`Let's start, if we can, with slide 2, which is claim 1 of the reissued
`'413 [sic] patent. It's not disputed that every element of this claim except for
`the last element is found in the prior art Sakata II reference. So if I may, I
`would like to start with the primary question facing the Board, which is
`would a person of ordinary skill in the art have been motivated to modify the
`Sakata II reference to remove its character substitution step, thereby
`satisfying the "returning the keypad to the default state" element of the claim
`of the '913 patent. As shown by the evidence here, the answer is absolutely
`yes.
`
`JUDGE JIVANI: Counsel, I understand that you would like to
`start at that position, but since you have put the language of the claim up in
`front of us, I wonder if you might instead address, please, patent owner's
`position on construction of the term "secondary character." I understand
`from their briefing that their position is that a secondary character can only
`be displayed in a second state. It's not particularly clear for me from your
`briefing what petitioner's position is on that proposition.
`MR. MAURER: Sure. So the plain meaning as to the -- there's
`actually two claim terms. I would like to address them together. I think that
`makes sense since they are related.
`JUDGE JIVANI: Please.
`MR. MAURER: There's two terms at issue here. One is "primary
`character" and the second is "secondary character." And we respectfully
`request they be given their plain meaning, which is that the primary
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`characters are ones that appear in the default state, and the secondary
`characters are ones that appear in the secondary state.
`I think there's two distinctions between our construction, the plain
`meaning construction, and what the patent owner suggests. With respect to
`the primary character, they suggest that the primary character is -- can be
`selectable in either the default state or in the secondary state. And that is
`incorrect. And then they suggest that the secondary characters are only
`selectable in the secondary state. I think they are putting a lot of weight on
`that word "only" in their proposed construction.
`Let's take a look at how this patent works. Let's look at Figure 1, if
`we can, slide 5. So this is the default state as described in the patent. When
`you look at Figure 1, if you long press on one of these keys, the patent uses
`the 5 key as the example, you then switch to a secondary state.
`So let's look at, if we could, slide 6, which is Figure 2, which is a
`secondary state that's associated with long press of the 5 key. And where
`does Figure 2 come from? Well, the patent describes that it comes from a
`key character table. And they provide an example of that in table 2, which
`we have in slide 13. The patent says that the key character table provides
`the information to build out that display in Figure 2.
`If you look at table 2, there's two columns. The left column is key,
`and that refers to the position on the telephone keypad. And then the second
`column is display secondary character, and that is the actual character that is
`then displayed, enabled for selection. Table 2 clearly labels all of those as
`secondary characters. Patent owner would suggest that the 5 key here would
`be a primary character, but that is contrary to what table 2 shows.
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`JUDGE JIVANI: So under your argument, an individual character
`could be both a primary and secondary character? The number 5, for
`instance?
`MR. MAURER: The plain meaning of this is if it shows up on a --
`in the second state, its's a secondary character. If it shows up in the default
`state, it's a primary character.
`JUDGE JIVANI: But are those things mutually exclusive?
`MR. MAURER: Let me see if I understand your question. Let's
`take the 5 key here since it shows up in both. Let's go back to Figure 2,
`which is slide 6, if we could. In this slide, in Figure 2 our construction is
`that 5 key is a secondary character because it's shown in the secondary state.
`And the reason that we know that is if we look at the claim language that we
`are addressing here -- this is slide 2, which is the language from claim 1. I'm
`going to refer now to the second half of this. In the second state is where it
`starts. The claim requires in the second state display each of the secondary
`characters associated with the first selected key in a respective display area.
`So when we had up there the 5 key, that there is the second state, and the
`claim is referring to it as a secondary character.
`The claim then continues detecting a second key selection and then
`selecting for input the secondary character associated with the second key
`selection.
`Here in the example that we are looking at with the 5 key, there is
`no doubt that if the user presses the 5 key, that is what will be input. And I
`would refer Your Honors to the patent at column 3, line 58, which says a
`second key selection from the keypad selects the character displayed for
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`input. That means that the 5 key, when it's in the second state, has to be a
`secondary character per the express language.
`JUDGE JIVANI: Counsel, let's try this another way. Is the
`primary character -- actually, let's just do it this way. In Figure 1, is the
`number 5 a primary character?
`MR. MAURER: Yes.
`JUDGE JIVANI: In Figure 2, is the number 5 a secondary
`character?
`MR. MAURER: Yes.
`JUDGE JIVANI: Thank you.
`MR. MAURER: If you have nothing further on the claim
`construction --
`JUDGE JIVANI: Nothing further. You may move on.
`JUDGE WEINSCHENK: Mr. Maurer, before you move on, do
`any of these constructions matter in terms of the arguments that patent
`owner has presented with respect to the asserted grounds of patentability?
`MR. MAURER: We do not believe so. They haven't made any
`arguments that we were able to identify where it impacts that for the same
`reasons Your Honors discussed in the institution decision at page 14. But
`also, I asked their expert, Mr. Porter, in deposition his opinions are not
`dependent on the claim construction, he admitted. And he couldn't identify
`how the claim construction that he proposed was relevant to his opinions.
`So we would suggest that they are not relevant.
`JUDGE WEINSCHENK: So we could address the issues in this
`case without construing those terms?
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`MR. MAURER: Your Honor, yes. So let me go back to then I
`think which is the primary question facing the Board, which is would a
`person of skill in the art be motivated to remove the character substitution
`step from Sakata II. And the evidence here is that, yes, they would. Both
`the '913 patent and Sakata II are directed to efficient entry of text on a small
`screen device. They both solved that problem in the same way, by having an
`alternate character set available to the user that appears with a long press on
`the key where the user can then select one of those characters.
`I think it's notable that this alternate character display scheme
`which shows up on a long press was the grounds, which during the
`prosecution of the reissue, the patentee distinguished incorrectly the Sakata I
`reference, and returning the keypad to the default state was not mentioned as
`a grounds of distinction.
`So the difference then between Sakata II embodiment on which we
`rely and the '913 patent's claims boils down to this further step of character
`substitution. Why would a person of skill in the art be motivated to change
`it? Well, Sakata II's character substitution step is added for what it says are
`reasons of efficiency. If you look at paragraph 51 of Sakata II, that's
`Exhibit 1004, it says when the same special character or symbol is selected
`again, selective input can be carried out quickly without having to perform
`the dragging operation.
`So why would a person of skill in the art be motivated to change
`it? Well, as explained by Dr. Cockburn, a person of ordinary skill in the art
`would understand that it's not always efficient to make that substitution. He
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`addresses this at paragraphs 146 and the following paragraphs of his
`declaration, paragraph 177 and the following paragraphs.
`JUDGE McKONE: Is that your only evidence here is the expert
`testimony or is there any other evidence the expert considers that we ought
`to be considering here?
`MR. MAURER: He certainly provides a reasoned explanation in
`those paragraphs as to why a person of skill in the art would understand this
`to be the case. But I also asked Mr. Porter, patent owner's expert, and he
`agreed that depending on the context of what the user is doing, there are
`situations where it would be efficient to change the character and there
`would be situations where it would not. We cite these portions of the
`deposition at page 12 of our reply. So a person would be motivated for that
`reason.
`
`JUDGE McKONE: Is this evidence that at the time of the filing of
`the challenged patent? We need to be careful about hindsight here.
`MR. MAURER: Absolutely. And I think the evidence of record
`makes it clear that this is one of those fundamental basic truths that a person
`of skill in the art would understand. There are certain characters that are
`going to be used more than other characters. And Dr. Cockburn provided
`reasoning for that, he provided the logic behind that, he provided examples
`of for instances when that might be true.
`JUDGE McKONE: Just to be clear, we would need to rely pretty
`much exclusively on your expert testimony as the evidence that supports the
`notion that at the time of the invention a person would have made this
`substitution?
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`MR. MAURER: Yes. I certainly think our expert provides that
`testimony. And again, I think that if you refer to the deposition cites of
`Mr. Porter that I referred to in our reply on page 12, there too, he allows that
`it is the case that in certain situations it will be efficient to switch and in
`certain situations it will not, which puts us, I think, squarely in the world of
`the quintessential case where the modification here is one of a very few, two
`in this case, potential solutions to the problem. That makes the modification
`obvious to try and renders this claim obvious.
`First, just to get this out of the way, there's no dispute that a person
`of skill in the art would have had a reasonable expectation of success in
`modifying Sakata II. Dr. Cockburn testified to that, and Mr. Porter, patent
`owner's expert, admits that as well. I would refer you to --
`JUDGE McKONE: Now, when you say reasonable expectation of
`success, do you mean one could have implemented so it worked or one
`would have had a reasonable expectation that it would have been more
`efficient with the substitution?
`MR. MAURER: With respect to the reasonable expectation of
`success here, I'm talking about the second prong which is you could do it
`without an issue. Certainly I think there is the motivation as well. And the
`motivation here falls, at the very least, under the obvious to try rubric. It's as
`we just discussed, a person of skill in the art would understand that there are
`certain cases it would be efficient to remove the character and switch it out.
`In certain cases it would be efficient to keep it the same. And for that
`reason, Dr. Cockburn testified that removing the substitution step would
`have been among the predictable solutions that the person of skill in the art
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`with Sakata II would have envisioned to efficiently input text on the small
`display.
`That is, here there is a design need based on consistency and
`efficiently principles and a finite number of potential solutions, two
`solutions. One is to make the change which the Sakata II embodiment on
`which we rely does, and the other is not to make the change. And
`Dr. Cockburn's testimony is that a person of ordinary skill in the art would
`have immediately recognized that as an option. And in the --
`JUDGE McKONE: Now, why is this argument more than a
`common sense argument?
`MR. MAURER: It's more than a common sense argument because
`it is supported by the -- the argument is premised on the person of skill in the
`art recognizing that in certain cases it would be efficient to change the
`character; in certain cases it would not be efficient to change the character.
`The evidence to support that, as we just discussed, Dr. Cockburn provides in
`his declaration. We asked Mr. Porter about it.
`And certainly the Board is entitled to rely on it. The board and
`courts routinely rely on expert testimony to inform the scope and content of
`the prior art. Dr. Cockburn's opinions in this regard are grounded in his
`experience. They are grounded in a reasonable and logical explanation.
`And if we want to turn to the Arendi case, and I'll quote from the
`Arendi case, 832 F.3d 1361: We stated in Perfect Web that common sense
`has long been recognized to inform the analysis if explained with sufficient
`reasoning.
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`We think this goes beyond common sense. But even if you believe
`that it is just common sense, the reasoning here provided by the expert as to
`the scope and content of the prior art makes it reliable, cogent evidence on
`which this Board can base an opinion.
`JUDGE WEINSCHENK: Mr. Maurer, let me ask you a question.
`In looking at Sakata, I kind of understand this to be teaching a keyword
`that's dynamic in the sense that when you press on something and select a
`different character, it's constantly modifying and updating the keyboard to
`be dynamic as to how you are using it. Now you're telling us, oh, well, it
`would be obvious to just completely stop doing that and leave it static. That
`seems -- we have to read the combination in light of what the references
`actually teach. Why would it be obvious to take the whole design of Sakata,
`which is to make it dynamic, and scrap that? That's the trouble that I'm
`having.
`
`MR. MAURER: Let's take a look at Sakata. Let's look at slide 16,
`if we can. I think the premise that Sakata is all about character substitution,
`respectfully, is an incorrect premise. Sakata is addressed to the problem of
`more efficient character entry, when you have got too many characters to fit
`on the small screen. And the way it proposes to solve that is the use of these
`popup drag menus. If you look at paragraph 1 of Sakata which talks about
`what the invention is, the description of the problems in the prior art at
`paragraphs 6 through 8 of Sakata, the objective of the Sakata invention in
`paragraph 9, the solution to the problem in paragraph 10, all of that is
`discussing the issue of what you do when you have too many characters to
`fit on the small screen and what is the best way for a user to efficiently put
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`those in. That is Sakata's main thrust. And that's supported by the
`independent claims, which do not require a character substitution step. It's
`supported by the abstract, which we have up here on slide 16.
`If you read here, when it talks about the purpose of the invention
`and the solution to the problem here, it doesn't talk about the character
`substitution step. That is one aspect of one embodiment. It's true we are
`relying on that embodiment because that embodiment spells out in specific
`detail all of the elements of the claim, but it just adds an extra step. And
`what we are saying is it would be obvious to a person of skill in the art, and
`this is more than adequately supported by Dr. Cockburn's testimony, in his
`declaration and the admissions from Mr. Porter, it's more than obvious to
`remove that step. At the very least, it's a one of two predictable solutions.
`I would like to, if I can, address briefly the argument that Sakata
`II -- and I think this is related to your question, Judge Weinschenk, that
`Sakata teaches away from modifying that step. Teach away is -- there's a
`specific test for this recognized in the case law. A teach away is where a
`user would be -- a person of skill in the art would be discouraged from
`following the path set out in the reference. This is the Galderma Labs case
`that we cite in our papers. A reference that merely expresses a general
`preference for an alternative invention but does not criticize, discredit or
`otherwise discourage investigation doesn't teach away. That is the state of
`the law.
`And when we look at Sakata II, Sakata --
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`JUDGE McKONE: Also, to be fair, the law also does say that
`something can teach away if it leads in a direction divergent from the
`invention; isn't that right?
`MR. MAURER: If it would discourage a person of skill in the art
`from pursuing that.
`JUDGE McKONE: That's two different things. Lead in a
`direction divergent and discourage are two different things, are they not?
`MR. MAURER: I think those are -- I took them to be the same.
`But even if it is, we don't have discouragement here. We don't have leading
`someone else in a different direction for several reasons. As we just
`discussed, the focus of Sakata II is on its use of the drag menu as a more
`efficient way to input characters on the small screen devices. We know that
`from the independent claims which do not require the character substitution
`step which only comes in at the dependent claims. We know that from the
`specification. We know that from the abstract, which we have on the screen
`here on slide 16, which doesn't mention substitution. We know that from the
`teachings in paragraph 25 where it says not that the keyboard must be
`changed but that the keyboard may be changed. And we know that this extra
`step, as according to Sakata, is an added convenience from paragraph 51.
`So it's not the case that --
`JUDGE JIVANI: Counsel, what about with regard to
`paragraph 51, what about paragraph 56 where the character substitution step
`is specifically praised by Sakata? Paragraph 56 reads, When a character or
`symbol is selected and entered using only the character symbol shown on the
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`soft keyboard 20, a drag menu is not displayed. Therefore, a user selection
`operation becomes simple.
`You are asking us to accept that this teaching which extols the
`benefit of character substitution does not teach away from ignoring character
`substitution. Why would we do that?
`MR. MAURER: That is a discussion of that particular
`embodiment.
`JUDGE JIVANI: On which you rely.
`MR. MAURER: That's absolutely correct, that's an embodiment
`on which we rely. But we rely on Sakata II as a whole as well.
`JUDGE JIVANI: So you are relying on all of the embodiments of
`Sakata II?
`MR. MAURER: We are relying on Sakata II as our primary
`reference. In particular, we are relying on the embodiment that is tied to
`those paragraphs in Figure 8. I'm not denying that. But that doesn't make
`the rest of Sakata II irrelevant. It still teaches a person of skill in the art.
`And what it teaches is that this step, this character substitution step is just an
`added efficiency which does have some benefits. But as Dr. Cockburn
`testified, a person of skill in the art would understand that that's not always
`true, that those benefits are not always true. But even if you were to find
`that Sakata II's disclosure would lead a person of skill in the art to think that
`character substitution was a better option based on Sakata II than not
`substituting, that doesn't change the result. It's still obvious.
`And here I would refer you to the Bayer case that we cite. It's 874
`F.3d at 1328 they say obviousness does not require that the motivation be
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`the best option, only that it be a suitable option from which the prior art
`didn't teach away. And it's clear that there's no teaching away here. In the
`context of the same argument as the patent owner is making here, the
`Federal Circuit in Bayer held that, quote, when there are only two possible
`formulations and both are known in the art at the time, that there are reasons
`a skilled artisan would prefer one over the other does not amount to a
`teaching away from the lesser preferred but still workable option. And they
`found the claims obvious. That's at worst, at the very worst, that's where we
`are, clear that this is a workable option, clear that a person of skill in the art
`would understand it.
`If I may, I would like to briefly address the claim 4 and the key
`character table. Patent owner has raised the question of whether Sakata II,
`despite having a disclosure that's essentially on all fours with the '913
`patent's disclosure adequately describes the structure of the key character
`table. It clearly does. The structure that we are talking about here as agreed
`to correspond to the claimed functions in claim 4, has some hardware
`components, including a memory which includes a computer program and
`one or more key character table. The role of the key character table, as the
`'913 patent describes it, is to provide information to the processor relating to
`the keypad to be displayed and also the characters to be selected. This is at
`column 4, line 52.
`Let's look at, if we can, slide 12. And they provide in the '913
`patent in table 1 and table 2 which we looked at previously, an example of a
`key character table where you have got the key position, you've got the
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`primary character and then table 1 has some secondary characters that
`optionally can be displayed in the default display as well.
`It's clear that such a structure is also present in Sakata II. If we
`look at slide 19, this is Figure 2 of Sakata, and it is a grouping of symbols
`which list the alternate characters and then maps them to a primary
`character. And I refer you to the Sakata description, Exhibit 1004 at
`paragraphs 19 through 25 where it describes exactly what this table is and
`how it maps those characters to a primary character for display when that
`primary character is long pressed on.
`JUDGE JIVANI: So counsel, do we need in Sakata II description
`of how the memory of Sakata is structured?
`MR. MAURER: I don't believe that we do. The role as the '913
`patent describes the KCT is to provide information to the microprocessor as
`to what character is displayed where and how to know which one is selected.
`Clearly the description of Sakata II does that. But even if we need a table,
`per se, if we look at the abstract, which is slide 16, it describes it as a table.
`Right in the solution, a similar character or similar group is allocated to one
`to plural preliminarily-defined specific positions in a table of a plurality of
`characters.
`Porter, Mr. Porter, patent owner's expert, and I'm referring now to
`his deposition at 67, lines 20 through 25, describes a table as just a type of
`data structure that's stored in a device's and memory. And the function of
`that table, Mr. Porter agrees, is to hold data in a way a computer can access
`it in order to use it. That's at 84, line 8. So it's clear that Sakata II meets
`that. In order for Sakata II to function, the key information has to be
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`accessed and used to display the keys as well as determine the key that was
`selected for input.
`But at the very least, Sakata II describes an equivalent. Even if
`you decide that it doesn't disclose a key character table, it clearly discloses a
`data structure of some sort that functions in the same way to reach the same
`result. I'd point you to pages 105 through 107 of Mr. Porter's deposition
`where we went into that in detail.
`Let me turn, then, if you don't have any further questions on that,
`to Buxton. The patentee has argued that the reliance on Buxton as a
`reference is misplaced. I think that reflects a misunderstanding as to the
`reasons why Dr. Cockburn is relying on Buxton. Buxton is very similar to
`the '913 patent and Sakata II. It's a system for text entry of alternate
`characters using a popup display that appears on a long press. Dr. Cockburn
`relies on it to reinforce that returning to a default state after display of a
`popup menu was a known and desirable option in the art. He cites in
`particular support for the point that consistency was recognized as important
`to a person of skill in the art, in particular, the teaching of leaving a
`keyboard unaltered upon removing an overlaid menu.
`I respectfully point the Board to, I think, the institution decision at
`page 18 where this issue is addressed. I don't think the positions of the
`parties have changed since then and that that is still correct. In particular,
`the cite, In re Keller, which the test for obviousness is not whether the
`features of a secondary reference may be bodily incorporated into the
`structure of the primary reference instead of what the combined teaching
`would suggest to a person of skill in the art. And the combined teaching
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`would suggest to a person of skill in the art here, as Dr. Cockburn testified,
`that you would not want to change the character or at the very least that that
`was an alternative option not to change them.
`JUDGE WEINSCHENK: Isn't Buxton a little different, though, in
`that what's coming up in the popup menu is not a character, though, right?
`MR. MAURER: Let's look at 21, if we can. I have put Buxton on
`the screen with the popup menu there. And what you have is when you
`press it, you then get this marking menu. And if you move your key to the
`up, you get an upper case A in this instance. If you move it to the right, you
`get the control A. Buxton is clear that this is a character. When you do this
`and you move it up, you get an upper case A. That's a character. And when
`you move it to the right, you get a control A which is a character. That's
`what it describes it as.
`JUDGE WEINSCHENK: I think in the display, the second
`display, which is the popup there, is not actually a character, right? The
`thing that says upper case is a word. Not a character.
`MR. MAURER: Upper case is a word, but it refers to a character.
`Whether you consider upper case a character or not, I think is, again
`respectfully, not relevant to the point that Dr. Cockburn is using this for,
`which is to say that when you have something that pops up which describes
`an alternate character you could be entering, that certainly describes it even
`if it isn't one, then you remove it and you returned to the default keyboard.
`JUDGE WEINSCHENK: I think the point that patent owner is
`trying to make is that in a situation like this where you are displaying a word
`or a function like upper case, it makes a lot more sense not to change the
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`display to upper case, then. Whereas, when you have Sakata, which is
`characters, maybe it makes more sense to change the display.
`MR. MAURER: Well, I mean, I understand their argument, but I
`think the testimony on record of this is that when this is popped up, it is
`referring to a character that the person of skill in the art would understand so
`that when you move it to the right, even if it's not the character A that pops
`up, you understand when you are moving it to a control, you are entering th