`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
`
`Filed on behalf of Supercell Oy
`
`By:
`BRIAN HOFFMAN, Reg. No. 39,713
`JENNIFER R. BUSH, Reg. No 50,784
`MICHAEL J. SACKSTEDER (pro hac vice)
`KEVIN X. MCGANN, Reg. No. 48,793
`GREGORY HOPEWELL, Reg. No. 66,012
`GEOFFREY MILLER (pro hac vice)
`FENWICK & WEST LLP
`555 California Street, 12th Floor
`San Francisco, CA 94104
`Telephone: 415.875.2300
`Facsimile: 415.281.1350
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`_______________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_______________
`
`SUPERCELL OY,
`Petitioner,
`
`v.
`
`GREE, INC.,
`Patent Owner.
`
`
`Case PGR2021-00014
`Patent 10,583,362 B2
`_____________
`
`PETITIONER’S SUR-REPLY TO PATENT OWNER’S RESPONSE TO
`PETITIONER’S REQUEST FOR REHEARING UNDER 37 C.F.R. §42.71
`
`
`
`
`
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`
`TABLE OF CONTENTS
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`Page
`There Is Minimal Overlap Between the Proceedings ...................................... 1
`The Minimal Overlap Is Wholly Relevant to the Board’s
`Analysis Under Factors 2 and 3 ....................................................................... 2
`Patent Owner Misrepresents the Relevant Factor 6 Analysis ......................... 4
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`
`A.
`B.
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`C.
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`i
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`TABLE OF AUTHORITIES
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`Page(s)
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`CASES
`Apple Inc v. Fintiv, Inc.,
`IPR2020-00019, Paper 11 (P.T.A.B. March 20, 2020) ............................ 1, 3, 4, 5
`NHK Spring Co. v. Intri-Plex Techs., Inc.,
`IPR2018-00752, Paper 8 (P.T.A.B. Sept. 12, 2018)............................................. 3
`Sand Revolution II, LLC v. Continental Intermodal Group-Trucking
`LLC,
`IPR2019-01393, Paper 24 (P.T.A.B. July 25, 2019) ............................................ 3
`Ultratec, Inc. v. CaptionCall, LLC,
`872 F.3d 1267 (Fed. Cir. 2017) ............................................................................ 5
`
`
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`ii
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`EXHIBIT LIST (37 CFR § 42.63(e))
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`Exhibit
`
`Description
`
`1001 U.S. Patent No. 10,518,177 to Suzuki
`
`1002 File History of U.S. Patent No. 10,518,177
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`1003 U.S. Patent No. 10,583,362
`
`1004 File History of U.S. Patent No. 10,583,362
`
`1005 Declaration of Steve Meretzky
`
`1006 Curriculum Vitae of Steve Meretzky
`
`1007 GREE’s Amended Disclosure of Asserted Claims and Infringement
`Contentions, dated August 19, 2020 in Case No. 2:19-cv-00413-JRG-RSP
`(E.D. Tex.)
`
`1008 Microsoft Computer Dictionary, 4th Ed. (1999)
`
`1009 YouTube - Master Hearthstone in 10 Minutes! The Ultimate Beginner’s
`Guide (“MH”) (web page print out from
`https://www.youtube.com/watch?v=CVZ4qyx-c2o)
`
`1010
`
`1011
`
`1012
`
`“Master Hearthstone in 10 Minutes! The Ultimate Beginner’s Guide,”
`webpage as captured by The Internet Archive on January 2, 2014
`
`“Master Hearthstone in 10 Minutes! The Ultimate Beginner’s Guide” –
`Video File
`
`“Master Hearthstone in 10 Minutes! The Ultimate Beginner’s Guide” –
`Transcript
`
`1013 U.S. Patent Publication No. 2013/0281173 to Gilson et al.
`
`1014 US Patent Publication No. 2014/0349723 to Nakatani et al.
`
`1015 U.S. Patent No. 5,662,332 to Garfield
`
`iii
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`Exhibit
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`Description
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`1016
`
`1017
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`1018
`
`1019
`
`“Dynamic game difficulty balancing,” Wikipedia page as captured by The
`Internet Archive on December 12, 2011
`
`“And That’s A Wrap! BlizzCon 2013 Has Officially Come to an End!”
`webpage as captured by the Internet Archive on Nov. 16, 2013
`
`“FAQ – Hearthstone” webpage as captured by the Internet Archive on
`Nov. 16, 2013
`
`“Hearthstone: Heroes of Warcraft Official Game Site” webpage as captured
`by the Internet Archive on Nov. 16, 2013
`
`1020 GREE, Inc.’s Opposition to Defendant Supercell Oy’s Motion to Dismiss,
`Dkt. No. 34, Filed April 8, 2020, Case No. 2:19-cv-00413-JRG-RSP
`(E.D. Texas)
`
`1021 Claim Construction Memorandum Opinion and Order, Dkt. No. 85, Filed
`Nov. 6, 2020, Case No. 2:19-cv-00413-JRG-RSP (E.D. Texas)
`
`1022 Declaration of Madeline Byers, Custodian of Records for Google LLC
`
`1024
`
`1023 Affidavit of Elizabeth Rosenberg, Records Processor at the Internet Archive
`[Model] Order Focusing Patent Claims and Prior Art to Reduce Costs,
`retrieved from
`http://www.txed.uscourts.gov/sites/default/files/forms/ModelPatentOrder.pdf
`1025 Declaration of Jennifer R. Bush in Support of Supercell Oy’s Reply to Patent
`Owner’s Preliminary Response
`
`1026 Amended Docket Control Order, Dkt. 139, Entered Mar. 9, 2021 (E.D.
`Texas 2:19-cv-00413)
`
`
`
`iv
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`A proper weighing of the Fintiv factors supports institution of PGR in the
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`instant proceeding. Petitioner asserts different primary art references in each
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`forum, relying on Master Hearthstone (“MH”) in the PGR as an invalidating prior
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`art reference against all claims of the challenged patent. The court in the parallel
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`litigation will not evaluate whether the patent is obvious over MH in combination
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`with Gilson, nor will the court assess the validity of the unasserted claims. This
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`minimal overlap affects not only Factor 4 (overlap) of the Fintiv analysis, but also
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`Factors 2 (proximity to trial) and 3 (investment). Moreover, the Board abused its
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`discretion in finding Factor 6 (merits) neutral. A proper weighing of the Fintiv
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`factors thus favors grant of rehearing and institution.
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`A. There Is Minimal Overlap Between the Proceedings
`The minimal overlap between the instant proceeding and the litigation
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`warrants institution of PGR. The absence of MH from the litigation coupled with
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`the Board’s acknowledgement that “Petitioner’s challenge based on § 103 [] has
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`merit,” (Decision at 12) demonstrates that the Board recognizes MH includes
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`disclosures that more likely than not render obvious claims of the ’362 patent.
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`Hence, the inclusion of MH constitutes a material difference between the art-based
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`grounds in the instant proceeding and those at issue in the parallel litigation – the
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`PGR involves a publication disclosing a prior art battle card game that more likely
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`than not renders obvious the key aspects of the ’362 patent’s claims.
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`1
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`Further, neither Patent Owner nor the Decision addresses the fact that the
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`PGR involves claims materially distinct from those remaining in the litigation,
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`including claims reciting what the battle conditions are and how they are determined
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`(4, 7-9, 15-16, 23-24), the comparative levels of attack strength of the opponent
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`characters under various battle conditions (5, 17, 25), or conducting a battle during a
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`third term (22). Moreover, the Petition demonstrates that these claims are invalid
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`based on MH, the non-overlapping reference. Pet. at 64-77. Tellingly, Patent
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`Owner does not even respond to Petitioner’s arguments that Patent Owner will likely
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`drop additional claims from the litigation before trial.
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`Patent Owner alleges that “[r]esolution of Petitioner’s challenge to any claim
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`of the ’362 Patent at the district court will resolve key issues in the Petition”
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`because Petitioner’s challenges “present the same reasons across all independent
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`claims.” Response at 4 (emphasis in original). This statement is simply false; the
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`Petition presents reasons why the ’362 patent is obvious that are not at issue in the
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`litigation. Additionally, overlap regarding the § 101 challenge in this forum does
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`not support discretionary denial as there is a “strong public interest in providing a
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`mechanism for early evaluation of Petitioner’s § 101 ground on the merits” in
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`PGRs. PGR2020-00039, Paper 14 (Decision) at 21.
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`B.
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`The Minimal Overlap Is Wholly Relevant to the Board’s Analysis
`Under Factors 2 and 3
`Contrary to Patent Owner’s assertions, concerns implicated by Factors 2 and
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`2
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`3 are obviated by the minimal overlap. The Board explicitly recognized that
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`“[s]ome facts may be relevant to more than one factor.” Apple Inc v. Fintiv, Inc.,
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`IPR2020-00019, Paper 11 at 6 (P.T.A.B. March 20, 2020) (Precedential). With
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`respect to Factor 2, the Board opinion in NHK Spring (the only opinion referenced
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`in the Fintiv Order discussion of Factor 2) anchored its analysis on the question of
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`overlap. See NHK Spring Co. v. Intri-Plex Techs., Inc., IPR2018-00752, Paper 8 at
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`20 (P.T.A.B. Sept. 12, 2018) (Precedential) (“A trial before us on the same asserted
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`prior art will not conclude until September 2019”) (emphasis added).
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`Here, the minimal overlap between the litigation and the instant PGR is
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`wholly relevant to the analysis of Factor 2. Patent Owner does not dispute that the
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`court will not address the validity of the ’362 patent on a ground raised in the
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`Petition. Specifically, the court will not consider whether the primary reference in
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`the instant PGR – MH – discloses limitations of the challenged claims and renders
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`obvious the challenged claims in combination with Gilson. Nor will the court
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`address at all the validity of claims 4-5, 7-9, 15-17, or 22-25. Accordingly, there is
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`minimal risk of inconsistent results between the proceedings.
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`The minimal overlap is also relevant to Factor 3. The Board in Sand
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`Revolution specifically looked at the type of investment that occurred in the parallel
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`proceeding in weighing Factor 3, concluding that the court and the parties had not
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`invested substantially in the merits of the invalidity positions. See Sand Revolution
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`3
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`II, LLC v. Continental Intermodal Group-Trucking LLC, IPR2019-01393, Paper 24
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`at 10 (P.T.A.B. July 25, 2019) (Informative) (“…much of the district court’s
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`investment relates to ancillary matters untethered to the validity issue itself.”). The
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`investment by the court in the parallel litigation has not been in whether the claims
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`of the ’362 patent are obvious over the grounds raised in the Petition. Nor will the
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`court make any future investment on these grounds.
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`Patent Owner Misrepresents the Relevant Factor 6 Analysis
`C.
`Patent Owner’s characterization of the Factor 6 analysis is wrong. Patent
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`Owner’s statement that “[t]he Board…determined that Factor 6 is ‘neutral’ because
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`the merits of the [Petition] challenges are neither weak nor strong” is false. Reply
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`at 4. The Board made no such characterization of the merits in the Decision, but
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`simply stated that Petitioner’s challenges have “merit.” Decision at 12.
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`Second, Patent Owner’s description of Fintiv’s Factor 6 is incorrect. Factor 6
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`does not favor institution “only” if the merits are particularly strong on the
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`preliminary record. Reply at 5. Rather, Fintiv merely recognized that a strong case
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`on the merits would favor institution. Fintiv, IPR2020-00019, Paper 11 at 14-15.
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`Indeed, the Fintiv Order footnoted its statement by citing to three prior decisions
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`where the “strength of the merits outweigh[ed] relatively weaker countervailing
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`considerations of efficiency” and a fourth decision where the grounds were
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`“sufficiently strong to weigh in favor of not denying institution.” Id. at 15 n.29.
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`4
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`Plus, the Board did conclude that Petitioner’s challenges under both § 101 and
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`§ 103 are particularly strong. The Decision necessarily concluded that it is more
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`likely than not that the ’362 patent is invalid under both grounds. Such merit is
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`inherently “strong,” as it meets a higher burden than the IPR institution standard
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`under consideration in Fintiv and the cases cited therein.
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`In fact, the invalidity grounds presented in the Petition could not be any
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`stronger; the Decision does not identify any weaknesses. The sole discussion of
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`the merits is found under Factor 6, which concludes with statements that both the
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`§ 101 and § 103 grounds have “merit.” Decision at 12 (citing Fintiv at 15-16).
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`There is no analysis that would support finding the invalidity grounds weak.
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`Further, finding Factor 6 to be “neutral” in view of this record is abuse of
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`discretion. There is nothing in the record to explain why the Board found Factor 6
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`neutral. Further, the Board implied that it did not even perform a full merits
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`analysis. Decision at 12. Finding Factor 6 neutral while stating that the Board does
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`not even need to perform a full analysis, signals an abuse of discretion at least
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`because it involves a record that contains no evidence on which the Board could
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`base its decision. Ultratec, Inc. v. CaptionCall, LLC, 872 F.3d 1267, 1273 (Fed. Cir.
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`2017) (finding the Board abused its discretion by making “significant evidentiary
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`decisions without providing an explanation or a reasoned basis for its decisions.”).
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`5
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`Dated: June 24, 2021
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`Respectfully submitted,
`FENWICK & WEST LLP
`
`/Jennifer R. Bush/
`Jennifer R. Bush
`Reg. No. 50,784
`Attorneys for Petitioner Supercell Oy
`
`
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`6
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`PGR2021-00014
`Petitioner’s Sur-Reply to Patent Owner’s Response to Petitioner’s Request for Rehearing
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`CERTIFICATION OF SERVICE ON PATENT OWNER
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`The undersigned hereby certifies that the foregoing Petitioner’s Sur-Reply to
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`Patent Owner’s Response to Petitioner’s Request for Rehearing was served on
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`Patent Owner’s lead and back-up counsel in its entirety by electronic service at the
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`Andrew W. Rinehart
`Kilpatrick Townsend & Stockton LLP
`1001 West Fourth Street
`Winston-Salem, NC 27101
`arinehart@kilpatricktownsend.com
`
`Scott A. McKeown
`Ropes & Gray
`2099 Pennsylvania Avenue, N.W.
`Washington, D.C. 2006
`scott.mckeown@ropesgray.com
`
`
`FENWICK & WEST LLP
`
`/Jennifer R. Bush/
`Jennifer R. Bush
`Reg. No. 50,784
`Attorneys for Petitioner Supercell Oy
`
`
`
`email addresses provided below:
`
`
`
`John C. Alemanni
`Kilpatrick Townsend & Stockton LLP
`4208 Six Forks Road, Suite 1400
`Raleigh, NC 27609
`jalemanni@kilpatricktownsend.com
`
`Joshua H. Lee
`Kilpatrick Townsend & Stockton LLP
`1100 Peachtree Street NE, Suite 2800
`Atlanta, GA 30309-6582
`jlee@kilpatricktownsend.com
`
`Dated: June 24, 2021
`Fenwick & West LLP
`801 California Street
`Mountain View, CA 94041
`Telephone: (650) 988-8500
`
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`7
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