`571-272-7822
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` Paper 32
`Entered: August 19, 2021
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
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`FITBIT, INC.,
`Petitioner,
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`v.
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`PHILIPS NORTH AMERICA LLC,
`Patent Owner.
`____________
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`IPR2020-00783
`Patent 7,088,233
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`Record of Oral Hearing
`Held virtually: Thursday, July 29, 2021
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`Before STACEY G. WHITE, MICHELLE N. WORMMEESTER, and
`NORMAN H. BEAMER, Administrative Patent Judges.
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`IPR2020-00783
`Patent 7,088,233
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`A P P E A R A N C E S
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`ON BEHALF OF THE PETITIONER:
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`JOSEPH PALYS, ESQUIRE
`NAVEEN MODI, ESQUIRE
`RUBIN RODRIGUEZ, ESQUIRE
`FOLEY & LARDNER LLP
`321 NORTH CLARK STREET, SUITE 3000
`Chicago, ILLINOIS 60654-4762
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`
`ON BEHALF OF THE PATENT OWNER:
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`ELEY THOMPSON, ESQUIRE
`GEORGE BECK, ESQUIRE
`YAR CHAIKOVSKY, ESQUIRE
`DAVID OKANO, ESQUIRE
`PAUL HASTINGS LLP
`2050 M STREET NW
`Washington, D.C. 20036
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`The above-entitled matter came on for hearing on Thursday July 29,
`2021, commencing at 1:00 p.m. EST, by video/by telephone.
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`IPR2020-00783
`Patent 7,088,233
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` (Proceedings begin at 1:00 p.m.)
` JUDGE BEAMER: Good afternoon. This is Judge
`Beamer. Are we all ready to start?
` With me are Judges White and Wormmeester.
` This is Fitbit Inc. v. Philips North America
`LLC, IPR 2020-783.
` Could the parties introduce themselves and
`spell their name.
` MR. PALYS: Good afternoon, Your Honors.
` This is Joseph Palys for petitioner. My last
`name is spelled P-a-l-y-s.
` And today I'm joined with my colleagues Naveen
`Modi, Yar Chaikovsky, and David Okano.
` MR. THOMPSON: Your Honor, I believe that
`that, if I'm not mistaken, was everybody for the
`petitioner, and in such case, I'm pleased to introduce
`myself. My name is Eley Thompson of Foley & Lardner on
`behalf of the patent owner, Philips North America.
` And with me from my firm are Rubin Rodriguez,
`and you see G. Beck there, but that's George Beck on
`the boxes on the video. So the three of us are
`appearing on behalf of the patent owner.
` I will be presenting or arguing.
` JUDGE BEAMER: Thank you.
` So this is a video hearing and our first
`priority is to make sure everyone can be heard. So if
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`at any time anyone has difficulties or is disconnected,
`please speak up, or if you are disconnected, you may
`need to contact the team who originally provided you
`with the connection information.
` If you do drop off, try to note where things
`were being discussed at the time so we can pick up at
`the proper point.
` Anyone who is not speaking, please mute your
`mic and only unmute when you are speaking, and identify
`yourself when you speak so that the transcript reflects
`the speaker correctly.
` When referring to an item on the record or a
`slide in your presentation, please specify the slide
`number or the citation so the panel can follow along
`and so the transcript is clear.
` I understand this is a public line so there
`may be members of the public listening in.
` So petitioner will go first. Each party has
`one hour.
` Petitioner, do you wish to reserve any time
`for rebuttal?
` MR. PALYS: Yes, Your Honor. We're going to
`shoot for 20 minutes for rebuttal.
` JUDGE BEAMER: Okay. So you may begin when
`you're ready.
` MR. PALYS: May it please the Board.
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` If we turn to our petitioner demonstratives
`that I assume that Your Honors have in front of you, we
`can turn to Slide 2, and I will begin.
` In this proceeding, the challenged claims, as
`you know, are at issue across seven grounds, and the
`grounds are split up, basically, across two primary
`references, and that's Jacobsen and Say.
` Based on how trials progress and given the
`issues that have been identified through patent owner's
`papers, the issues have been really narrowed down to a
`few items.
` If we go to Slide 3.
` Therefore, for purposes of today, Your Honors,
`I'd like to first focus on the security mechanism term
`and discuss how the prior art discloses and/or suggests
`that feature, and then, depending on how much time is
`left, I'll try to respond to the patent owner's
`arguments with respect to the dependent claims.
` Of course, the Board is driving the bus here,
`so if any questions, kind of, divert from this intended
`path, obviously, I'll do my best to answer those
`questions.
` So with that, let's turn to Slide 6, please.
` And on Slide 6 we see Claim 1 of the '233
`patent, and that's the sole, independent claim at issue
`here.
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` Now, patent owner's main argument against
`Jacobsen and Say is really based on the security
`mechanism that you see highlighted at the bottom of
`Claim 1 on this slide.
` The specification does not use the word
`governing information transmitted as you see in the
`term, instead, as I will explain and as is explained in
`our papers, the patent really describes the security
`mechanism in terms of examples and embodiments.
` Now, through its papers and the testimony of
`its expert, patent owner has raised, either directly or
`indirectly, interpretation issues with respect to the
`security mechanism in an attempt to distinguish the
`prior art.
` Now, from our perspective, patent owner's
`arguments somewhat generate some ambiguity in terms of
`what really its position is, but from our perspective,
`we believe how the prior art discloses this term is
`pretty straightforward.
` So let's turn to Slide 7, please.
` With respect to the '233 patent, Your Honors,
`when it comes to security, the specification describes
`various arrangements for governing information
`transmitted between the devices.
` For example, you can see in Exhibit 1001,
`Column 13, line 24 through Column 14, line 14, the
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`patent presents a security section which describes
`possible, but not exclusive, embodiments for security.
` But in general, the patent states, as you can
`see here on the slide, "The ability to receive and
`transmit to and control the personal medical device, or
`PMD 100, requires some measure of security."
` And there are different ways, as the patent
`explains, how such security mechanisms can be
`implemented.
` So if we turn to Slide 8, we can see, for
`example, the '233 patent makes clear that the use of a
`password or a key is a contemplated security
`embodiment.
` You can see that, for example, in Column 8,
`lines 11 through 22 of Exhibit 1001 for explaining the
`use of passwords or other keys.
` Column 13, lines 41 through 54, how it
`explains how a user can enter a key to release
`information or access to authorized parties.
` And Claim 3 explains how the security
`mechanism in Claim 1 can employ authorization, which a
`password can facilitate.
` And, of course, Claim 4 explains that the
`security mechanism that's recited in Claim 1 can also
`employ a key that's entered by a user of the first
`personal device.
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` JUDGE BEAMER: Counsel, wouldn't that be --
` MR. PALYS: (Inaudible) not --
` JUDGE BEAMER: Counsel, wouldn't --
` MR. PALYS: Yes, Your Honor.
` JUDGE BEAMER: -- the reference to a key be an
`encryption key as opposed to a password?
` MR. PALYS: Well, the patent describes both,
`Your Honor. It describes the use of the private key,
`public key type of aspect. It also -- in terms of a
`key that can be explained -- actually, if you stay on
`Slide 8, I believe there's some description of that.
`If you look at the top left box, Your Honor, in
`Column 8, lines 11 through 22, it's describing how a
`security password may be entered by using numeric or
`other keys on a phone, and at the bottom you can see
`the highlight where it gives an example of a security
`code when it's talking about entering keys and things
`of that nature.
` And then, of course, elsewhere where it
`describes encryption, which I'm about to get to, it
`talks about the private key, public key.
` So I agree with you, when you see key, it can
`include encryption, but there's also a disclosure of
`keys being associated in the same light as a --
`somewhat like a password or a credential.
` JUDGE BEAMER: Okay, thank you.
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` MR. PALYS: With that, unless you have any --
`yes, sir.
` We can move to Slide 9, which I highlighted
`that we're going to talk about encryption.
` So the patent also explains that encryption
`can be used and, indeed, standard encryption
`algorithms.
` Column 13, lines 41 through 46 of Exhibit 1001
`describes encryption.
` Column 13, lines 60 through 66, this is what I
`was referring to, Judge Beamer, with respect to public
`key and private key encryption techniques that can be
`used.
` And as we know, and a POSITA knows, for
`encryption to work, the data that's encrypted must be
`decrypted at the receiving end, which the patent also
`explains here in Column 13, lines 60 through 66.
` And more telling is Claim 2 which expressly
`indicates that the claim security mechanism in Claim 1
`encrypts the information.
` So we go to Slide 10.
` As the Board is aware, in its Institution
`Decision the Board recognized that passwords and
`encryptions fall within the claimed security mechanism
`of Claim 1, and that you can see excerpts from the
`Institution Decision at pages 15 and 36.
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`IPR2020-00783
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` Now, if we transition to Slide 11, please.
` For its part, Your Honors, the patent owner's
`take on what encompasses the claimed security
`mechanism, from our perspective, seems to have been a
`moving target.
` Initially, as the Board recognized in its
`Institution Decision -- excuse me -- which excerpts are
`shown on Slide 11, which is citing to the preliminary
`response, the Board recognized that patent owner sought
`to distinguish the prior art by arguing that passwords
`and encryption do not govern or control, which was the
`construction they were pursuing, information.
` And patent owner also sought to incorporate a
`requirement that there was multiple levels of access
`that was required, and through its testimony of its
`expert, Dr. Martin, that argued that encryption would
`not satisfy the governing of information that was
`transmitted.
` Again, you can see the additional disclosures
`of that in the Institution Decision at 33 through 34,
`which was citing Dr. Martin's District Court claim
`construction declaration, which is Exhibit 2007 in this
`record.
` Turning to Slide 12.
` We can see later on in the proceeding in its
`patent owner response, the patent owner, from our
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`perspective, confusingly suggested that encrypting
`information may provide security in terms of
`establishing restrictions on information that is
`transmitted, and you can see that through the
`highlighted sections here from their patent owner
`response at page 8.
` Also, the patent owner acknowledged that a
`password is actually an example of a mechanism that
`governs information transmitted -- again, password
`transmitted -- between a first personal device and a
`second device, but also adds a disqualifier, as you can
`see that's highlighted in blue here on Slide 12, that
`that would require a particular level of access.
` Slide 13, please.
` In its patent owner response, the patent owner
`also made clear that encryption may be used to govern
`information that is transmitted between a first and
`second device, and you can see that on their patent
`owner response at 11.
` But then they also add a disqualifier there
`attempts to distinguish between encryption of the
`contents of the signal and using it to govern access by
`a device from encryption of the signal on an
`established network.
` This is admittedly a baffling argument from
`our perspective, Your Honor, because the patent owner
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`really doesn't articulate in its papers the distinction
`between encrypting the contents of a signal versus
`encrypting the signal which would require encryption of
`the contents of the signal.
` To the extent that the patent owner's
`qualifier is that encryption cannot occur on an
`established network, that's a requirement that we
`believe introduces even more ambiguity, and it's just
`something that's not even set forth in the claims.
` So we turn to Slide 14.
` Now, in its surreply, Your Honors, patent
`owner seems to pull a little bit away from its earlier
`positions to suggest that encryption does not encompass
`the claimed security mechanism because the claims
`require something significantly more.
` But requiring something significantly more --
`which we don't know what that means, it wasn't really
`explained -- than encryption to govern information
`transmitted seems to be at odds with the patent owner's
`other statements and what its expert actually stated in
`its declarations and deposition.
` Slide 15, please.
` Nonetheless, Your Honors, despite these
`varying positions from the patent owner and qualifiers
`of the use of passwords and encryptions, et cetera, the
`patent owner argues in its surreply -- you can see that
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`here in their surreply, page 2 -- that it and its
`expert, Dr. Martin, rely solely on the plain meaning of
`security mechanism.
` Slide 16, please.
` Likewise, despite advocating that the use of a
`password required a particular level of access -- and I
`mentioned that in my reference to Slide 11 earlier --
`in its surreply, the patent owner is representing that
`the security mechanism does not require multiple levels
`of authorization now, and they actually are saying that
`the patent owner is not relying on that to distinguish
`the prior art. Again, this is from the surreply at
`page 10.
` Now, this last representation is interesting
`because their own expert, Dr. Martin, agreed during
`cross examination that the key advance of the '233
`patent beyond the prior art was the use of multiple
`levels of authorization. And you can see that
`testimony in Exhibit 1076 at page 74, line 19 through
`page 75, line 22, specifically page 75, 11 through 22.
` Nonetheless, if we turn to Slide 17, please.
` While Dr. Martin appeared to take the position
`that the plain and ordinary meaning applies, his other
`testimony and patent owner's reliance on it, for that
`matter, suggests that he and the patent owner are
`really advocating for additional features in its
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`IPR2020-00783
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`interpretation of security mechanism, but as explained
`in our papers, Your Honors, these features are not
`supported, nor are they consistent with the plain
`meaning of security mechanism that's described in the
`context of the patent.
` Slide 18.
` Again, you can see here from excerpts from
`Dr. Martin's deposition testimony, while he stated he's
`taking the plain meaning of security mechanism, during
`cross examination his interpretation of that plain
`meaning requires that the security mechanism to be
`dependent on the threat that one tries to protect
`against, in other words, it's a moving target, it's
`subjective.
` You can see that in our papers and here, and
`let me get the excerpts for you, Exhibit 1076 at
`page 97, line 8 to 98, line 3; again, page 98 lines 5
`through 13; and page 98, line 15 through 99, line 5.
` Now, you can see through these excerpts -- and
`there's more actually on Slide 19 that I'm going to
`skip by -- but the point here is that we asked
`Dr. Martin multiple times about the plain meaning that
`he was relying on to support his opinions, and you can
`see it, in his view, it depended on the type of threat
`that you're trying to protect.
` Now, patent owner attempted in its surreply to
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`really rehabilitate that testimony, but we think
`Dr. Martin's deposition testimony actually speaks for
`itself.
` Again, Slide 19 just gives you some more
`excerpts along the same issue. That's Exhibit 1076,
`page 95, lines 14 through 96-1, and page 96, lines 7
`through 22.
` So turning to Slide 20.
` Dr. Martin, we can see, also confirmed during
`his cross examination that he relied on the abstract
`and the discussions related to Figure 5, and you can
`see the same type of positions in the patent owner
`response and in Dr. Martin's opening testimony. But
`they relied on these features to really interpret the
`security mechanism, basically, to require multiple
`levels of authentication to support his opinions in his
`declaration.
` But Your Honors, as explained in our papers,
`the prior art, Jacobsen and Say, for that matter,
`discloses this claimed security mechanism even under
`its plain meaning.
` It's interesting that Dr. Martin later
`admitted that the embodiment of Figure 5 that he relied
`on to support his plain meaning read was just one
`embodiment -- of course, he had to because that's what
`the patent explains -- and that Claim 1 is not
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`limited to that embodiment. And you can find that
`testimony in Exhibit 1076 at page 83, line 20 to
`page 84, line 4; some more on page 60, lines 2
`through 10; page 114, lines 2 through 23.
` But even if it did require levels of access
`that patent owner's expert seems to represent, the
`prior art discloses those features because Dr. Martin
`also admitted that having multiple levels of
`authentication can encompass where you either have full
`access or no access at all.
` With all this said, as a transition, Your
`Honors, one thing must be certain; the plain meaning or
`the interpretation, however the Board really wants to
`look at this term security mechanism, must encompass at
`least encryption and the use of a password or/key from
`our perspective.
` And as explained in our papers, and I'll turn
`to next, the prior art discloses these features.
` JUDGE BEAMER: Well --
` MR. PALYS: I don't know if there's any
`questions with that backdrop --
` Yes, sir.
` JUDGE BEAMER: So do you have -- what is your
`understanding of how Figure 5 works?
` In other words, you have a bystander who is
`near the victim, and they supposedly are not able to
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`gain full access to the information, whereas the
`responder is. So wouldn't that work with a simple
`password or a simple encryption with a key?
` MR. PALYS: Yeah. We believe that the
`password or key could work in Figure 5. Also,
`encryption could be used, but the flow in Figure 5
`specifically is talking about, you know, as Your Honor
`just mentioned, you have this intermediary between,
`like, the responder and the victim. So, in one sense,
`that could be like the first device and the second
`device with an intermediary.
` But the point here that patent owner seems to
`rely on with Figure 5, from our understanding -- it's
`the same arguments that they actually raised in
`District Court, which the two District Court judges has
`rejected -- is that the claims seem to be limited to
`this type of data flow, meaning that there has to be
`some level of access -- a particular level of access
`granted, in this case like the bystander not having
`access to information, even if -- as I understand
`patent owner's position, even if you use encryption,
`encrypting information that's going through, you know,
`the bystander, to the responder, et cetera, that you
`still have to have this level of access to prevent that
`particular bystander from getting access to certain
`information.
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` Whether that's using a password or whatever is
`one thing, but our point is -- and I believe the
`district courts even agreed with this, and Dr. Martin
`agreed with it, because I just showed you the
`testimony -- Claim 1 is not limited to that, this level
`of access.
` And, in fact, if they're going to pursue
`that -- which I believe they will as I've seen in their
`demonstratives -- Your Honor, this level of access
`argument, I showed you from the surreply at page, I
`believe it was 10 or 13, I'm sorry, I don't have the
`cite exact, they're not taking a position that multiple
`levels of access now are required. In fact, they
`expressly indicated that they're not using that to
`distinguish the prior art.
` So thus, our confusion. So we still see
`arguments about levels of access, but then they're
`saying that they're not relying on that.
` Did I answer your question, sir?
` JUDGE BEAMER: Yes, thank you.
` MR. PALYS: Thank you.
` Okay. So let's please turn to Jacobsen now.
`We can jump to Slide 22.
` Now, as I mentioned earlier, patent owner's
`sole argument against Jacobsen for Claims 1 and 7
`through 10 is really based on the security mechanism.
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`And despite their representation that the plain meaning
`applies, they're still trying to distinguish Jacobsen
`based on implied interpretations of the security
`mechanism that really borders on claim construction,
`because those arguments rely on the term being
`interpreted to require or exclude certain features.
` Our position is that their position has no
`support in intrinsic evidence or any evidence
`demonstrating how and why Jacobsen actually discloses
`this feature.
` So we can turn to Slide 23. I'll just briefly
`touch on Jacobsen, Your Honors.
` You know, Jacobsen describes, which is -- we
`don't believe is disputed, a bidirectional wireless
`communication system and includes a first device --
`first personal device and a second device.
` The first device is the wrist unit 18, and the
`second device is that soldier unit 50.
` Now, if you turn to Slide 24, you can see in
`Figure 4A of Exhibit 1005, which is Jacobsen, you can
`see the wrist unit on the top left and the soldier unit
`50 that's on the top right, they communicate using
`these bidirectional communication modules, which we've
`highlighted in red here.
` Now, Slide 25, please.
` The petition explained how Jacobsen provides
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`these features. You can see that in our petition on
`pages, roughly, 36 through 38.
` But when it comes to the claimed security
`mechanism, the petition explained how Jacobsen provides
`for password security that governs the information
`transmitted between units 18 and 50.
` For example, you can see on the slide from
`Jacobsen, Column 15, lines 5 through 14, Jacobsen
`explains that each device includes a self-disabling
`means which requires entry of a password, and if an
`incorrect password is entered for more than one
`attempt, the device will disable.
` We can turn to Slide 26, please.
` As we explained in our papers, and recognized
`by the Board, you can see excerpts again from
`Exhibit 1001, Jacobsen's use of passwords is very
`similar to the '233 patent.
` Claim 4, as I mentioned, discusses how the
`security mechanism can employ a key entered by a user
`of the first personal device.
` Column 13, lines 25 through 26 and 52 through
`54 is actually showing you one of the embodiments of
`security where, again, the user of the personal device
`100 may have a security key that they can enter to
`release information or access to authorized parties.
` And, of course, the '233 patent mentions the
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`use of passwords in Column 8, lines 11 through 22.
` Now, if we turn to Slide 27, let's go to
`patent owner's arguments.
` Patent owner arguments against Jacobsen is
`really based, in our view, because Claim 1 requires
`information to be transmitted -- that's one of the
`arguments that they raise -- and that somehow Jacobsen
`doesn't disclose these features.
` We believe that those arguments are misplaced,
`Your Honors, because the claims actually do not require
`security after an actual transmission, but even if it
`did, Jacobsen discloses that, so it's really -- it's
`not dispositive either way, from patent owner's
`perspective.
` First, patent owner's position is not a new
`claim construction argument as patent owner seemed to
`suggest in its surreply at page 13.
` We just simply responded to patent owner's
`argument at in their response at page 21 that the
`claims are limited to a security mechanism involving
`information that is transmitted. And we provided
`examples from the specification on that; namely, at
`Exhibit 1001, Column 13 to -- Column 13, line 55 to
`Column 14, roughly around line 6. Talking about
`biometrics and keys, et cetera, which is like a
`password, it's a credential that's entered by a user
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`and it allows a user to enter these credentials, and
`that can occur before any information is actually
`transmitted.
` What's key here is that the specification,
`again, at 13 -- Column 13, lines 52 through 54, says
`that a user of a PMD 100 can have a security key that
`he can enter to release information.
` That information is not even transmitted yet.
` Of course, the claims can encompass something
`that is transmitted, we don't dispute that, but it's
`not limited to that, and that's what patent owner is
`really trying to inject into the claim.
` And, of course, Claim 4, as I mentioned,
`describes a lot of these issues.
` Secondly, as I mentioned, even if the
`transition was required, as patent owner alleges,
`Jacobsen discloses this.
` In Jacobsen, you have this wrist unit --
`right? -- 18 that can both send and receive
`information. You can see that disclosure in
`Exhibit 1005, Column 11, 14 through 26.
` And, in fact, Jacobsen discloses, again, as I
`mentioned, each device. So the wrist unit 18 or the
`device soldier unit 50 can have this password
`mechanism.
` So even where unit 50 is receiving
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`information, like the sensor information from the wrist
`unit 18, that's information that's been transmitted.
` And vice versa. You know, again, a unit --
`soldier unit 50 can send information to wrist unit 18
`which can be displayed, that's information that's been
`transmitted. And when you use the password to gain
`access to that or block access, however, you can
`governing information transmitted between the first and
`second devices, just like it's claimed.
` And with respect to the transmitted argument,
`I'd just like to point out that in the California case,
`CDCA case, the patent owner took a conflicting position
`on this issue here. You can see this in the
`Exhibit 2023 at 13 and 14 where the District Court was
`rejecting the patent owner's positions, but they were
`taking the position that the security mechanism, "Must
`control whether information can be transmitted at all."
`They were contending that -- "The plaintiff appears" --
`this is Court saying this -- "Plaintiff appears to
`focus specifically on the issue of the ability of the
`security mechanism to make a determination about
`whether information can be actually transmitted between
`the claimed device or not," but that's what Jacobsen
`describes, as I mentioned.
` And also, again, it's reference to what I
`pointed out with respect to the specification in
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`Claim 4.
` If we turn to Slide 28.
` I'd also like to point out that patent owner's
`suggestion that the security mechanism requires
`information to be transmitted is actually at odds with
`Dr. Martin's, its own expert's, testimony in District
`Court. You can see here at Exhibit 2025, at page 134,
`lines 12 through 22. In trying to distinguish
`encryption, Dr. Martin was actually indicating that the
`security aspects in the patent -- he's talking about
`controlling access to the device -- includes scenarios
`where no information is transmitted at all.
` We can go to Slide 30.
` Patent owner also argues that there's this
`first password scenario that they refer to. In other
`words, again, in Jacobsen, which expressly states that
`if you don't enter the password correctly the first
`time, you get a second shot, and then, if you enter it
`incorrectly a second time, that it will disable itself.
`That's the first password scenario that patent owner
`refers to in their surreply at page 13.
` They're saying that that doesn't govern the
`information transmitted, but in Jacobsen, it actually
`describes in Column 11, lines 14 to 26, how it is
`important for the wrist sensor/display unit 18 to be
`able to send -- both send and receive signals from the
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`soldier unit 50, and that the communication mechanism
`224 of that wrist unit 18 has both a transmitter and
`receiver. And so Jacobsen disclosing that that wrist
`unit may display location information of actually other
`soldiers, which would have to receive from the unit 50,
`as I mentioned. And you can see excerpts from
`Exhibit 1005 on that point, Column 9, lines 24 through
`29, and also Column 6, lines 66 through Column 7,
`line 4.
` Now, when wrist unit 18 is having a password
`disabling feature, that means that the information
`transmitted from the unit 50 can be prevented from
`being accessed.
` And Dr. Martin, actually -- we asked
`Dr. Martin about this feature, and he explained how, if
`the wrong password is entered first, information can
`still be transmitted.
` So patent owner's position that even in this