`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`SUPERCELL OY,
`Petitioner,
`
`v.
`
`GREE, INC.,
`Patent Owner.
`
`Case PGR2020-00052
`U.S. Patent No. 10,335,682
`
`PATENT OWNER’S SUR-REPLY TO PETITIONER’S REPLY TO
`PATENT OWNER’S PRELIMINARY RESPONSE
`
`
`
`TABLE OF CONTENTS
`The Petition Should Be Denied Under § 324(a). ............................................. 1
`1.
`No Evidence of Any Likelihood of a Stay ............................................ 2
`2.
`Trial Date Remains Well In Advance of Board’s FWD
`Deadline ................................................................................................. 2
`Substantial Investment in Parallel District Court
`Proceeding ............................................................................................. 4
`Substantial Overlap of Issues Between the Two Forums ..................... 4
`4.
`No Other Relevant Circumstances ........................................................ 5
`5.
`The Petition Failed to Demonstrate That GSB Was Publicly
`Accessible. ....................................................................................................... 6
`
`3.
`
`I.
`
`II.
`
`
`
`TABLE OF AUTHORITIES
`
`Cases
`Apple Inc. v. Fintiv, Inc.,
`IPR2020-00019, Paper 11 (P.T.A.B. Mar. 20, 2020) .................................. 1, 4, 5
`Apple Inc. v. Fintiv, Inc.,
`IPR2020-00019, Paper 15 (P.T.A.B. May 13, 2020) ........................................... 2
`Apple Inc. v. Maxell, Ltd.,
`IPR2020-00203, Paper 12 (P.T.A.B. July 6, 2020) ..................................... 1, 3, 5
`Apple Inc. v. Maxell, Ltd.,
`IPR2020-00407, Paper 12 (P.T.A.B. Aug. 11, 2020) ........................................... 3
`Guardian Alliance Techs., Inc. v. Miller,
`IPR2020-00031, Paper 27 (P.T.A.B. July 27, 2020) ............................................ 7
`Hulu, LLC v. Sound View Innovations, LLC,
`IPR2018-01039, Paper 29, (P.T.A.B. Dec. 20, 2019) .......................................... 6
`Intel Corporation v. VLSI Technology LLC,
`IPR2020-00106, Paper 17 (P.T.A.B. May 5, 2020) ............................................. 3
`Kranos Corporation v. Apalone, Inc.,
`IPR2020-00501, Paper 13 (P.T.A.B. July 16, 2020) ............................................ 3
`NHK Spring Co., Ltd. v. Intri-Plex Techs., Inc.,
`IPR2018-00752, Paper 8 (P.T.A.B. Sept. 12, 2018)............................................. 1
`Realtime Data LLC v. Actian Corporation,
`No. 6:15-CV-463-RWS-JDL, 2016 WL 9340796 (E.D. Tex. Nov.
`29, 2016) ............................................................................................................... 2
`Supercell Oy v. GREE, Inc.,
`IPR2020-00215, Paper 10 (P.T.A.B. June 10, 2020) .................................. 1, 3, 5
`
`ii
`
`
`
`LIST OF EXHIBITS
`
`Exhibit No.
`2001
`
`Description
`Amended Docket Control Order, GREE, Inc. v. Supercell Oy, Civil
`Action No. 2:19-cv-00200, Document 113 (E.D. Tex. May 14,
`2020)
`
`2002
`
`2003
`
`2004
`
`2005
`
`2006
`
`2007
`
`2008
`
`Supercell Oy’s Motion for Relief in View of Governmental/Public
`Health Restrictions in Response to COVID-19 Virus Impact,
`GREE, Inc. v. Supercell Oy, Civil Action No. 2:19-cv-00200,
`Document 100 (E.D. Tex. April 23, 2020)
`
`Third Amended Complaint, GREE, Inc. v. Supercell Oy, Civil
`Action No. 2:19-cv-00200, Document 18 (E.D. Tex. July 2, 2019)
`
`Defendant Supercell Oy’s Preliminary Ineligibility Contentions,
`GREE, Inc. v. Supercell Oy, Civil Action No. 2:19-cv-00200 (E.D.
`Tex.), dated November 13, 2019.
`
`Defendant Supercell Oy’s Invalidity Contentions and Disclosures
`Under Local Patent Rules 3-3 and 3-4, GREE, Inc. v. Supercell Oy,
`Civil Action No. 2:19-cv-00200 (E.D. Tex.), dated December 6,
`2019
`
`Exhibit G-3 to Defendant Supercell Oy’s Invalidity Contentions
`and Disclosures Under Local Patent Rules 3-3 and 3-4, GREE, Inc.
`v. Supercell Oy, Civil Action No. 2:19-cv-00200 (E.D. Tex.),
`dated December 6, 2019
`
`Exhibit G-7 to Defendant Supercell Oy’s Invalidity Contentions
`and Disclosures Under Local Patent Rules 3-3 and 3-4, GREE, Inc.
`v. Supercell Oy, Civil Action No. 2:19-cv-00200 (E.D. Tex.),
`dated December 6, 2019
`
`Exhibit G-10 to Defendant Supercell Oy’s Invalidity Contentions
`and Disclosures Under Local Patent Rules 3-3 and 3-4, GREE, Inc.
`v. Supercell Oy, Civil Action No. 2:19-cv-00200 (E.D. Tex.),
`dated December 6, 2019
`
`iii
`
`
`
`Exhibit No.
`2009
`
`Description
`Merriam-Webster’s Collegiate Dictionary, Eleventh Edition
`(2007)
`
`iv
`
`
`
`I.
`
`The Petition Should Be Denied Under § 324(a).
`The facts of the present case are analogous to those in NHK Spring and its
`
`progeny and thus warrant exercise of the Board’s discretion to deny institution under
`
`§ 324(a) for the same reasons. Indeed, each Fintiv factor supports denial here. See
`
`Patent Owner’s Preliminary Response (“POPR”), at 2–28. And the possibility of
`
`duplication of efforts here is high, as is the potential for inconsistent results, due to
`
`both tribunals considering overlapping issues. See, e.g., Supercell Oy v. GREE, Inc.,
`
`IPR2020-00215, Paper 10, at 18 (P.T.A.B. June 10, 2020).
`
`In the face of the Board’s controlling precedents, Petitioner argues the Board
`
`should not exercise its discretion under § 324(a) largely based on Congress’s alleged
`
`intent in establishing post grant review and the public’s alleged interest in the present
`
`proceeding. Reply, at 1–2. But the Board “need not address” Petitioner’s “policy
`
`arguments against the Board’s application of Fintiv and NHK” because those
`
`decisions have been “designated … precedential decisions of the Board.” Apple Inc.
`
`v. Maxell, Ltd., IPR2020-00203, Paper 12, at 17 (P.T.A.B. July 6, 2020) (emphasis
`
`added). Petitioner’s fundamental challenge regarding the propriety of NHK Spring
`
`and Fintiv necessarily fails, as this Board has previously held. See, e.g., Supercell,
`
`IPR2020-00215, Paper 10, at 17–18. And a balanced analysis of the Fintiv factors
`
`demonstrates that efficiency and integrity of the AIA are, in fact, best served by
`
`denying review pursuant to § 324(a). See POPR, at 8–28.
`
`
`
`No Evidence of Any Likelihood of a Stay
`1.
`As previously noted, there is no evidence here to suggest that the district court
`
`will grant a stay should this proceeding be instituted. POPR, at 9–10. And
`
`Petitioner’s unilateral intent to seek a stay in the parallel litigation “should the PGR
`
`be instituted” (Reply, at 3) does not demonstrate otherwise. A stay pending an
`
`administrative proceeding is not automatic; rather, it must be based upon the
`
`circumstances of the individual case before the court.” Realtime Data LLC v. Actian
`
`Corporation, No. 6:15-CV-463-RWS-JDL, 2016 WL 9340796, at *2 (E.D. Tex.
`
`Nov. 29, 2016). And the district court routinely finds that the “late stage” of a case—
`
`like here—“weighs against a stay.” Id. at *4–5; see Exs. 2001, 1019.
`
`Trial Date Remains Well In Advance of Board’s FWD Deadline
`2.
`Petitioner’s argument that Factor 2 “should be afforded little weight” in view
`
`of alleged “uncertainty” of the trial date (Reply, at 3–4) readily fails in view of the
`
`facts here, as well as Board precedents. Trial is currently set for December 7, 2020.
`
`Ex. 1019, at 1. The Board “generally take[s] courts’ trial schedules at face value
`
`absent some strong evidence to the contrary.” Apple Inc. v. Fintiv, Inc., IPR2020-
`
`00019, Paper 15, at 13 (P.T.A.B. May 13, 2020). And there is no such “strong
`
`evidence to the contrary” here. Id. Rather, Petitioner’s argument that it requires
`
`discovery of Japan-based witnesses, and “it is unlikely that Japan’s travel ban will
`
`be lifted in time for … a December trial” (Reply, at 4), is based on pure speculation.
`
`2
`
`
`
`Additionally, any “generalized speculation as to trial dates universally (e.g.,
`
`due to impacts of COVID-19)”—like that proffered by Petitioner here (Reply, at
`
`3)—is “outweighed by the fact that the jury trial in this case is scheduled to occur
`
`approximately ten months before the Board’s statutory deadline.” Supercell,
`
`IPR2020-00215, Paper 10, at 11 (emphasis added); see POPR, at 13.
`
`Thus, even if trial is ultimately delayed by a few months, until early 2021 for
`
`example, trial will still end many months before October 2021, when a final written
`
`decision would be due. See, e.g., Apple Inc. v. Maxell, Ltd., IPR2020-00407, Paper
`
`12, at 8 (P.T.A.B. Aug. 11, 2020) (“Although we consider further delays due to the
`
`COVID-19 pandemic to be a real possibility despite the … the recent order resetting
`
`the trial date for December 7, 2020, a delayed trial still may precede a final written
`
`decision in this proceeding, which would be due in August 2021.”); Apple, IPR2020-
`
`00203, Paper 12, at 10 (“Although delays due to the COVID-19 pandemic may be a
`
`real possibility … even a delayed trial may precede a final written decision”); Intel
`
`Corporation v. VLSI Technology LLC, IPR2020-00106, Paper 17, at 8 (P.T.A.B.
`
`May 5, 2020) (holding similar); see also Kranos Corporation v. Apalone, Inc.,
`
`IPR2020-00501, Paper 13, at 10 (P.T.A.B. July 16, 2020) (“[T]here is no indication
`
`that the district court’s response to the COVID-19 outbreak would result in the
`
`district court extending the trial date for more than ten months.”). Discretionary
`
`denial under § 324(a) is thus appropriate. Id.
`
`3
`
`
`
`Substantial Investment in Parallel District Court Proceeding
`3.
`Petitioner’s argument that Factor 3 somehow “favors institution” because the
`
`Board has already invested substantial resources in a different proceeding is wholly
`
`irrelevant. Reply, at 4. The focus of this factor is expressly on the investment of the
`
`district court and parties in the parallel proceeding. Apple Inc. v. Fintiv, Inc.,
`
`IPR2020-00019, Paper 11, at 6, 10 (P.T.A.B. Mar. 20, 2020); see POPR, at 14–18.
`
`Petitioner’s claim that Patent Owner fails to “identify any unfair costs”
`
`flowing from this proceeding (Reply, at 5) also misses the mark. The Board has
`
`recognized that a petitioner’s delay in filing a petition, relative to “a looming trial
`
`date,” may “impose unfair costs to a patent owner.” Fintiv, IPR2020-00019, Paper
`
`11, at 11. That is exactly the case here. Due to Petitioner’s delay (see POPR, at 17–
`
`18), Patent Owner necessarily faces the prospect of having to re-litigate Petitioner’s
`
`same invalidity challenges from that forum in front of this Board almost a year later.
`
`Petitioner’s argument that its “timing” in filing the Petition was somehow
`
`appropriate because “[e]ven now, it is unclear which claims [Patent Owner] will
`
`pursue in district court” (Reply, at 5) is also unavailing. Patent Owner disclosed its
`
`asserted claims months before the Petition was filed. See Ex. 2004, at 2. And in any
`
`event, Petitioner challenges all claims of the ’682 Patent in the instant Petition.
`
`Substantial Overlap of Issues Between the Two Forums
`4.
`Petitioner’s speculative argument that “[s]hould [Patent Owner] reduce the
`
`4
`
`
`
`number of claims its asserts in the parallel litigation and, institution is denied,
`
`significant issues related to the unasserted claims would be left unaddressed” (Reply,
`
`at 5) is rebutted by its own Petition. Petitioner argues that the challenged claims
`
`effectively rise or fall together. See, e.g., Pet. at 16–45 (presenting same arguments
`
`across all claims under § 101), 46–73 (presenting same prior art arguments for all
`
`independent claims). And the Board has recognized “if a petition involves the same
`
`prior art challenges but challenges claims in addition to those that are challenged in
`
`the district court, it may still be inefficient to proceed because the district court may
`
`resolve validity of enough overlapping claims to resolve key issues in the petition.”
`
`Fintiv, IPR2020-00019, Paper 11, at 13; see, e.g., Apple, IPR2020-00203, Paper 12,
`
`at 12–16 (factor favors denial even in view of Patent Owner’s narrowing of claims).
`
`No Other Relevant Circumstances
`5.
`Petitioner’s unilateral characterization of the merits of its Petition as “strong”
`
`does not justify institution here in view of the advanced stage of the parallel
`
`proceeding, in accordance with a balancing of the Fintiv factors. See POPR, at 24–
`
`28. Even an allegedly “strong case on the merits” can be outweighed by the facts
`
`underlying factors 2–5 collectively. See Supercell, IPR2020-00215, Paper 10, at 18.
`
`Moreover, Petitioner’s sole support for its characterization is a prior Board decision
`
`regarding the another patent, which Patent Owner has demonstrated does not control
`
`the analysis here for a number of reasons. See POPR, at 30–32.
`
`5
`
`
`
`II.
`
`The Petition Failed to Demonstrate That GSB Was Publicly Accessible.
`The purported “indicia of public accessibility” on the face of Ex. 1010 that
`
`Petitioner cites in Reply is nothing more than inadmissible hearsay. Petitioner claims
`
`the indicia “establish that over 100,000 people” received the manual “before the
`
`critical date.” Reply, at 6. That claim is based on nothing more than the hearsay
`
`statement “[o]ver 100,000 people have bought Gratuitous Space Battles so far …,”
`
`in an Internet Archive capture of a website purporting to sell the GSB game. Ex.
`
`1010, at 17. Notwithstanding its hearsay nature, that statement fails to demonstrate
`
`that the GSB manual itself (Ex. 1010, at 1–12) was publicly accessible prior to the
`
`critical date. Indeed, despite Petitioner grouping the documents together in a single
`
`Exhibit 1010, the purported “indicia of public accessibility” Petitioner relies on in
`
`Reply do not appear on the GSB manual itself, but rather on other websites. Compare
`
`Ex. 1010, at 1–12 with Ex. 1010, at 13–19. For this and other reasons, public “links
`
`for purchasing the GSB game” via “Google or Amazon” (Reply, at 6; Ex. 1010, at
`
`13) likewise do not demonstrate that the GSB manual itself (Ex. 1010, at 1–12) was
`
`publicly accessible prior to the critical date. See POPR, at 34–43.
`
`And while Petitioner received leave to file a reply to address the availability
`
`of GSB as a prior art reference, Petitioner did not request leave, nor demonstrate the
`
`requisite “good cause,” to submit additional evidence regarding the same. See Hulu,
`
`LLC v. Sound View Innovations, LLC, IPR2018-01039, Paper 29, at 7 (P.T.A.B. Dec.
`
`6
`
`
`
`20, 2019); see also Guardian Alliance Techs., Inc. v. Miller, IPR2020-00031, Paper
`
`27, at 8–9 (P.T.A.B. July 27, 2020) (noting the evidence presented “in the Petition”
`
`must “make a prima facie case of public accessibility” (emphasis added)). The Board
`
`should thus disregard new, and unauthorized, Exhibit 1021. This declaration
`
`testimony from “GSB creator” Cliff Harris should have been presented “in the
`
`Petition” to “make a prima facie case of public accessibility.” Guardian Alliance,
`
`IPR2020-00031, Paper 27, at 9. But it undisputedly was not, and thus Petitioner
`
`necessarily failed make such a prima facie case of public accessibility, for all the
`
`reasons set forth in Patent Owner’s Preliminary Response. Id.
`
`Petitioner’s argument that it is freely able to present such new evidence in
`
`Reply (Reply, at 7) is based on a misapplication or misunderstanding of Hulu. The
`
`Board has made clear that the “rebuttal evidence” contemplated by the Hulu decision
`
`cannot serve as “evidence necessary to make Petitioner’s prima facie case.”
`
`Guardian Alliance, IPR2020-00031, Paper 27, at 9. Here it was Petitioner’s burden
`
`to establish a prima facie of public accessibility in its Petition. Id. at 8–9 (noting the
`
`evidence presented “in the Petition” must “make a prima facie case of public
`
`accessibility” (emphasis added)). Petitioner failed to do so, and cannot remedy this
`
`failure with unauthorized Reply evidence.
`
`7
`
`
`
`Dated: August 13, 2020
`
`By: /John C. Alemanni/
`John C. Alemanni
`Reg. No. 47,384
`Lead Counsel for Patent Owner
`
`8
`
`
`
`CERTIFICATE OF SERVICE
`
`The undersigned hereby certifies that a copy of the foregoing Patent Owner’s
`
`Sur-Reply to Petitioner’ Reply to Patent Owner’s Preliminary Response has been
`
`served electronically via email upon the following:
`
`Jennifer R. Bush
`Michael J. Stacksteder
`Brian M. Hoffman
`Kevin X. McGann
`Gregory A. Hopewell
`Geoffrey Miller
`Fenwick & West LLP
`jbush@fenwick.com
`msacksteder@fenwick.com
`bhoffman@fenwick.com
`kmcgann@fenwick.com
`ghopewell@fenwick.com
`gmiller@fenwick.com
`
`Dated: August 13, 2020
`
`By: /John C. Alemanni/
`John C. Alemanni
`Reg. No. 47,384
`Lead Counsel for Patent Owner
`
`9
`
`