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`INTERNATIONAL TRADE COMMISSION
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`) Investigation No.:
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`In the Matter of:
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`) 337-TA-1125
`CERTAIN HEIGHT-ADJUSTABLE DESK PLATFORMS
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`AND COMPONENTS THEREOF
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`Pages: 1 -148
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`Place: Washington, D.C.
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`10, 2018 Date: Monday, December
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`J)))I
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`ACf HDtRAl
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`Ace-Federal Reporters, Inc.
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`Stenotype Reporters
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`1625 I Street, NW
`Suite 790
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`Washington, D.C. 20006
`202-347-3700
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`Nationwide Coverage
`www .acefederal.com
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`DEC 1 2 2018
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`1
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`UNITED STATES OF AMERICA
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`BEFORE THE
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`INTERNATIONAL TRADE COMMISSION
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`IN THE MATTER OF:
`
`Investigation No.
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`CERTAIN HEIGHT-ADJUSTABLE
`
`337-TA-1125
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`DESK PLATFORMS
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`------------------------------
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`MARKMAN HEARING
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`December 10, 2018
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`Courtroom C
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`U.S. International Trade Commission
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`500 E Street SW
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`Washington, DC
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`The Markman Hearing commenced, pursuant to notice
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`of the Judge, at 9:00 a.m., before the Honorable Charles E.
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`Bullock, Administrative Law Judge for the United States
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`International Trade Commission.
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`REPORTED BY: Tina Alfaro, RPR, CRR, RMR
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`Ace-Federal Reporters, Inc .
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`202-347-3700
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`APPEARANCES:
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`ON BEHALF OF THE COMPLAINANT VARIDESK, LLC:
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`VENABLE, LLP
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`BY: ADAM HESS, ESQ.
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`ANDREW PRATT, ESQ.
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`ALPER ETRAS, ESQ.
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`TAMATANE AGA, ESQ.
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`KATHERINE DEARING, ESQ.
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`600 Massachusetts Avenue, NW
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`Washington, DC 20001
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`(202) 344-4547
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`ON BEHALF OF THE RESPONDENTS VISION MOUNTS,
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`NANTONG JON, GRANDIX, KEXIANG, BEST CHOICE
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`PRODUCTS, AND CKNAPP SALES:
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`GOODWIN PROCTER, LLP
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`BY: RONALD PABIS, ESQ.
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`STEPHEN SHAHIDA, ESQ.
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`TESS MAGER, ESQ.
`
`WILLIAM UHR, ESQ.
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`901 New York Avenue, NW
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`Washington, D.C. 20001
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`(202) 346-4258
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`APPEARANCES:
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`(Cont'd)
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`ON BEHALF OF THE RESPONDENT DAKOTA TRADING:
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`EZRA SUTTON & ASSOCIATES, P.A.,
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`BY: EZRA SUTTON, ESQ.
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`Plaza 9, Route 9
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`Woodbridge, New Jersey 07095
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`(732) 634-3520
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`ON BEHALF OF THE RESPONDENTS CHANG HE AND
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`LORELL:
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`LEVI & SNOTHERLY, PLLC
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`BY: RETT SNOTHERLY, ESQ.
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`1101 Connecticut Ave., NW, Suite 450
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`Washington, D.C. 20036
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`(202) 997-3711
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`ON BEHALF OF THE COMMISSION STAFF:
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`Office of Unfair Import Investigations
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`U.S. International Trade Commission
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`BY: ANDREW BEVERINA, ESQ.
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`500 E Street, SW, Room 401
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`Washington, DC 20436
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`(202) 205-2560
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`P R O C E E D I N G S
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`JUDGE BULLOCK:
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`Good morning. This is the
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`Markman hearing in Docket 11-25. We're going to start
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`well, start with the tutorial and then we'll go into the
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`Markman phase, the proceeding, but before we do that let's
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`take appearances.
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`MR. HESS: Your Honor, Adam Hess from Venable on
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`behalf of Complainant. With me is Andrew Pratt, Alper
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`Ertas, Tama Aga, and Katherine Dearing, all from Venable.
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`Thank you.
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`MR. PABIS: Good morning, your Honor. Ron Pabis
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`from Goodwin Procter on behalf of Vision Mounts, Nantong
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`Jon, Grandix, Kexiang, which is also known as Sita, Best
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`Choice Products, and CKnapp Sales for those Respondents.
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`And also with me from Goodwin Procter is Mr. Steve Shahida,
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`Mr. Will Uhr, and Tessa Mager.
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`MR. SUTTON: Your Honor, Ezra Sutton.
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`JUDGE BULLOCK: Is your microphone on, sir.
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`MR. SUTTON: Oh, sorry.
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`Your Honor, Ezra Sutton on behalf of the
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`Respondent Dakota Trading, and I will be presenting part of
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`the claim terms.
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`MR. SNOTHERLY:
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`Good morning, your Honor. Rett
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`Snotherly from Levi & Snotherly on behalf of Chang He and
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`Lorell Respondents.
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`MR. BEVERINA: Good morning, your Honor. Andrew
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`Beverina and Anne Goalwin on behalf of the Office of Unfair
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`Import Investigations.
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`JUDGE BULLOCK: If there are no preliminary
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`matters, let's proceed with the tutorial.
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`MR. HESS: Good morning, your Honor.
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`JUDGE BULLOCK: Good morning.
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`MR. HESS: I have spoken with the
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`Respondents. We reviewed the slides I'm about to present.
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`There are not many, it's not very technical technology
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`here, but I assume everything should go fine and with
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`hopefully no objections.
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`Your Honor, sitting for long periods of time
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`during the workday is generally understood to be bad for
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`one's health. Recent studies have shown that people now
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`spend more than one-third of their day sitting or doing
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`other sedentary activities. I won't go into the specific
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`medical issues that can arise, but it's generally
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`understood that moving around is better for one's health
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`than sitting all day.
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`For quite a while standing desks have been used by
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`people trying to avoid sitting. Many famous people going
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`back to Thomas Jefferson, Winston Churchill, Ernest
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`Hemingway all chose to have standing desks as an
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`alternative to sitting, but standing all day can have its
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`own problems. Thus, the need exists for a solution that
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`allows for more movement.
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`One proposed solution to get more movement was
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`things like treadmill desks or bicycle desks. These are
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`very complicated apparatuses and although these devices
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`allowed for movement, they can be big, cumbersome, and
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`expensive.
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`Another proposed solution has been adjustable
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`full-height desks, basically a large desk that goes up and
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`down to adjust to whatever height you want.
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`Yet another solution has been adjustable- height
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`keyboard and monitor attachments that bolt or otherwise,
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`you know, attach to a desk somehow and then the monitor and
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`the keyboard go up and down as you need.
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`Finally we come to the solution that is at issue
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`here and this is products known as on-desk adjustable
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`sit-stand desks. They come in a variety of shapes, sizes,
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`and colors, but they generally all come preassembled and
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`require little or no setup. They're meant to be placed on
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`top of an existing desk instead of being used on their own,
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`and they convert in an existing desk to a sit-stand desk.
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`They're generally large enough to hold a monitor or two as
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`well as other office products such as staplers, tablets,
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`your coffee mug, whatever. They can be manually adjusted
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`from one height to another and they don't use electricity
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`to go up and down.
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`On this last slide there's a short video and this
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`is, I admit, a promotional video for Varidesk, the
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`Complainant's product, but it's meant to show how the
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`sit-stand desks are used.
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`It doesn't get into a comparison
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`with other desks or products and it doesn't discuss the
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`patents at issue.
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`(Whereupon a video is played.)
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`MR. HESS:
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`I apologize, your Honor, we're having
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`a problem with the sound. Your Honor, if you have any
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`questions on that I'd be happy to answer them.
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`JUDGE BULLOCK: Thank you.
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`MR. HESS: We also have a sample of our product
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`as well as several of the Respondents' products in the back
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`of the courtroom if you'd like to examine any of them
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`throughout the course of the day.
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`JUDGE BULLOCK: Okay. Thank you.
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`MR. HESS: Thank you.
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`JUDGE BULLOCK: Just a word on that. To the
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`extent parties are going to be using physical exhibits,
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`they must remain here at the Commission so that I can look
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`at them or the commissioner.
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`MR. HESS:
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`I understand, your Honor.
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`I didn't
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`necessarily intend to refer to any, but they're here more
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`if you would like to refer to them.
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`JUDGE BULLOCK: Thank you.
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`MR. HESS: Thank you. Now go into the claim
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`construction?
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`JUDGE BULLOCK: Okay. So let's go to the claim
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`construction portion of the hearing.
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`Just a reminder, each party with respect to each
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`-- first of all, we'll go claim by claim and then each
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`party has the opportunity for an initial argument and a
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`reply argument, but after that we move on to the next claim
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`term.
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`I assume the parties have agreed to an order of
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`presentation?
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`MR. PABIS: If you'd like to go first, that's
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`MR. HESS: Yes.
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`MR. PABIS: Go ahead.
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`JUDGE BULLOCK: So it will be the private parties
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`followed by the Staff, then?
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`MR. BEVERINA: Yes, your Honor.
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`JUDGE BULLOCK: Okay. Thank you.
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`MR. HESS: Your Honor, before we start I do want
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`to let you know that since we finished briefing the parties
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`have agreed on the construction of term 7 in the joint
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`claim construction chart. We all agree that the
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`construction proposed by the Staff is acceptable.
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`So we see there's no need to argue that term today. So it
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`will just be six terms that are argued.
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`JUDGE BULLOCK: Great. Good .
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`MR. HESS: Your Honor, the claim terms at issue
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`here are simple words with definitions that should be
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`apparent to just about anyone.
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`In most instances the claim
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`construction arguments fall along the same general lines.
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`Varidesk asserts that these simple terms should be
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`construed according to their plain and ordinary meaning,
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`and the Staff for the most part agrees that the plain and
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`ordinary meaning should apply. The Staff generally
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`proposes constructions that involve a minor word change
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`from Varidesk, but in each instance the Staff's proposed
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`constructions are acceptable to Varidesk.
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`Respondents, however, in just about every instance
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`violate one of the fundamental rules of claim construction.
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`They spend a lot of time going over minute details of a
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`preferred embodiment and try to read those limitations from
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`the preferred embodiment into the claims. The Federal
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`Circuit has routinely rejected those arguments in the past
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`and you should do so here today.
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`There's a heavy presumption that claim terms
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`should be given their plain and ordinary meaning and
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`importing limitations into the claims from a preferred
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`embodiment is inappropriate unless one of two exceptions
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`exists. First, if the patentee clearly acted as his own
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`lexicographer and explicitly defined the term and, second,
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`if the patentee clearly disavowed specific claim scope in
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`prosecution.
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`As you will see, neither of those
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`exceptions apply here and the claim terms at issue should
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`be given their plain and ordinary meaning. We'll go
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`through the claim terms in the same order that they appear
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`in the briefs and in the joint claim construction chart.
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`I'll start with the term "base. " The term "base"
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`appears in several phrases in the claims.
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`You see on this slide the wording of the overall phrase is
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`slightly different, but generally the parties agree on all
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`the meaning of all the words except for the word "base"
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`in these claim phrases.
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`Here, as with many other claim terms, Varidesk and
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`the Staff agree that the plain and ordinary meaning should
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`apply. Here, although there's a slight variation, the
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`Staff's proposed construction is acceptable to Varidesk as
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`well. A "base" is simply the structure that supports the
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`overall device.
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`Respondents, however, try to limit the base to a
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`platform or a work surface, in other words, something with
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`a large surface area, but nothing in the claims, the
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`specification, or the prosecution history indicates that
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`the term 11 base 11 should be so limited. Thus, the issue here
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`is whether the base must be a platform or work surface.
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`If we look at the claim language the answer is no.
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`There's nothing in the plain and ordinary meaning of the
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`term 11base" that suggests it must be a platform or work
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`surface. Respondents have not argued otherwise. Instead
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`Respondents focus on a figure in the provisional
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`application that includes the term "base platform" to
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`describe one of the structures therein, but that argument
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`fails for several reasons.
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`specification of the patent at issue is what dictates the
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`claim construction, not the provisional application. But
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`even looking at the provisional application figure, here
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`you see the key term "base platform'' is outlined in red.
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`You can see that 11 base 11 does not mean "platform. " If it
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`did the term "base platform" would be redundant and
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`meaningless.
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`Instead basic English grammar rules dictate
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`that the word "base" modifies the word "platform. " Just
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`like you see at the top of this figure, the term "desktop"
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`modifies the word "platform. "
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`It describes what type of
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`platform it is. Thus, in this figure the base platform is
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`the platform that serves as the base of the device, but it
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`does not mean that "base" and "platform" are synonymous.
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`If we look at the figures in the asserted patent,
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`for example, figures 2 or 14, it shows an underview and an
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`overview of the one example from the patent. Here the term
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`"base" includes a platform, which is identified as item 20,
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`but it is not limited to the platform as the base also
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`includes what we've referred to as the ski-like structures
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`identified as 22 which are counterweights to prevent the
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`device from tipping over. Why is that? Because in context
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`the base supports the other components in the device and is
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`adapted to sit on an existing desk.
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`This understanding of the term "base" is confirmed
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`by looking at dependent claim 4 of the '809 Patent. Claim
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`4 states "The adjustable desk platform of claim 3 wherein
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`the base includes a counterweight. " In other words, claim
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`4 is limited to devices where the counterweight is part of
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`the base, but by claim differentiation claims 1 and 3 are
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`not.
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`In their reply brief on page 11 the Respondents
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`try to argue that claim 4 requires that a counterweight is
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`added to the base as a separate component rather than being
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`part of the base by intentionally conflating the term
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`"base" and the term "lower platform."
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`I'm reading now from page 11 of the Respondent's
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`reply brief where they state in the second and third lines
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`that "The counterweights can be added to the base lower
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`platform. " They use the term "base lower platform"
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`together and, contrary to their assertion, the patent never
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`uses the term "base lower platform." Indeed the portion of
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`the specification they cite to does not use that term.
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`The Respondents go on in that same page then to
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`state that "The specification of the
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`'809 Patent refers to element 20 as the base or lower
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`platform." Again, that's not correct. That does not
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`appear in the '809 Patent. Nowhere does the '809 Patent
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`refer to item 20 as the base.
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`Item 20 in the drawing we looked at before is a platform.
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`It is part of the base, but it is not the base.
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`In addition to claim 4 we have the same concept
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`here in the summary of the invention. In the '809 Patent
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`and in all the patents the summary of the invention
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`describes several embodiments, and in this one embodiment
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`they describe an embodiment where the base includes a
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`counterweight, in other words, the ski-like structures that
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`we looked at earlier, but it doesn't define the base as
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`being a platform. Both the summary of the invention and
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`claim 4 describe embodiments where the base includes a
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`counterweight, not that the counterweight is attached to
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`the base as asserted by the Respondents.
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`of the '703 Patent. Here an excerpt from an amendment in
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`that prosecution. The prosecution history of the '703
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`Patent also indicates that "base" should not be interpreted
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`to mean a platform or a work surface.
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`In this amendment the patentee specifically
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`deleted the words "A lower platform defining a
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`substantially planar work surface" and inserted the words
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`"a base located beneath the upper platform. " Notably, this
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`amendment was not made in response to a rejection
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`concerning the term "lower platform." There was no
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`indication by the patentee or by the examiner that "base"
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`and "lower platform" mean the same thing.
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`In fact, if they
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`did mean the same thing this amendment would have been
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`unnecessary.
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`Contrary to the Respondents' arguments, this
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`amendment does not mandate that the construction of the
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`term "base" requires the base to be a platform or work
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`surface.
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`The rest of the Respondents' arguments are also
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`easily dismissed. First, the Respondents count the number
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`of times that the term "lower platform" appears in the
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`specification and argue that the term "base" should be
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`limited to platform due to the number of times that these
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`words appear in the specification. But as in the Gillette
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`case we cite in our brief, that argument should be rejected
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`because there was no explicit disavowal of claim scope.
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`Next, the Respondents argue that claim 5 of the
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`includes the term "lower platform" and depends from claim 1
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`which includes the term "base," but as Respondents note in
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`a footnote, the patentee disclaimed claim 5 due to lack of
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`an antecedent basis for the term "lower platform. "
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`That claim is not even at issue here and it was disclaimed
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`by the patentee a while ago. Thus any alleged relationship
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`between the claims is irrelevant.
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`The Respondents also try to argue that the term
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`"base" does not include the term "feet. " They conflate
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`"feet" and "legs, " but this argument is not really a claim
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`construction argument.
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`argument. The Respondents' products, like Varidesk
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`products, like many products, have little rubber feet on
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`the bottom of them so when you put them on a desk they
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`don't scratch the desktop.
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`The Federal Circuit has repeatedly stated that
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`it's an error of law to consider the accused device as
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`extrinsic evidence during claim construction, and that's
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`exactly what the Respondents are asking you to do with this
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`argument.
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`Finally, the Respondents' argument regarding the
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`prosecution history of the '853 parent application should
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`be completely disregarded.
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`It does not even relate to the
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`claim language at issue and in their reply brief they did
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`not correct or address Varidesk's statement on that .
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`As noted very clearly in the Staff's brief, the
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`relevant question for construing the claim term is whether
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`the base claimed in all the claims of the asserted patents
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`must be a platform based on the claims, the specification,
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`and the prosecution history. As agreed upon by Varidesk
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`and the Staff, the answer is no. Although the base can be
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`a platform and the base can include a platform, there is
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`nothing that requires the base to be a platform.
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`Thank you.
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`JUDGE BULLOCK: Thank you.
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`MR. PABIS: Again, your Honor, Ron Pabis on behalf
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`of Respondents.
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`I'll be addressing the "base" phrase,
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`which, just to be clear, is not just the term "base, " but
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`there's a lot more to the "base" phrase in each of the
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`disputed claims.
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`We have our slides printed out if you would like
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`them.
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`I can hand those out if that would be okay.
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`JUDGE BULLOCK: That would be great. Thank you.
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`MR. HESS:
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`I apologize.
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`I forgot to hand ours
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`out.
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`JUDGE BULLOCK: Let's go off the record for a
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`moment while the slides are handed out.
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`(Short interruption.)
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`JUDGE BULLOCK: Back on the record. Please
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`MR. PABIS: Thank you.
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`Your Honor, the issue with the term "base, " the
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`"base" phrase, we call it for short the "base" phrase is
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`the limited disclosure that was made by the patentee with
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`regard to that phrase and, frankly, with regard to several
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`of the phrases that we're here to talk about, and of
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`course, the disclosure is the quid pro quo for the grant of
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`exclusivity. And when we're construing the claims the
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`patentee should not be able to obtain a patent on what has
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`not been disclosed to the public, and what we'll see is
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`that the original disclosure was limited, very limited to a
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`mechanical component with different arms and platforms
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`connected in a certain way. That was the disclosure, that
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`maintained the disclosure for years, and it's that
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`disclosure which should govern the way that we construe
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`these claims.
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`So I want to talk about the "base" phrase first .
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`The "base" phrase appears in several of the claims, and
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`it's not just "base." It's "a base located beneath the
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`upper platform, the base defining a bottom surface without
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`legs that is adapted to sit on an existing desk. " That's a
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`lot of words, it's a lot more than just "base, " and
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`Varidesk is correct, we are disputing this term because
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`Varidesk is trying to read that phrase on a structure that
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`has feet instead of a base platform.
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`Now, we know from the Federal Circuit in the
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`Wilson Sporting Goods case that while the Court shouldn't
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`prejudice the process by construing claims to include or
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`exclude a product, it's appropriate to consider the accused
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`product in the claim construction process to give
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`meaningful context to claim construction.
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`So why are we here? We're here because we have a
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`dispute about this term. We believe the disclosure limits
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`it to the platform we are accused. Our products have no
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`platform but instead these feet which the arms are attached
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`to. That's why we're here, that why it matters. So when
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`Varidesk says the claim doesn't need construction, we have
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`a fundamental dispute under 02 Micro it should be
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`construed.
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`Here are our constructions. Varidesk says plain
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`and ordinary meaning . Ours is "a lower platform or work
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`surface beneath the upper platform that is adapted to sit
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`on an existing desk. " I'll get to how we get there. The
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`Staff's construction from our perspective doesn't do much
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`but change a couple words in the claims and it doesn't give
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`any additional clarity to the term -- to the "base" phrase.
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`Okay. So before we get into the extrinsic
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`evidence there are two overarching issues that are relevant
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`to most of the terms that are being disputed that we'd like
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`to address, and we think Varidesk is incorrect and
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`overstating the law.
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`That starts with this concept that counsel just reiterated,
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`the concept that without either lexicography or clear
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`disavowal the Court should give a claim term its broadest
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`reading.
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`What you see on slide 6 is from the reply brief --
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`Varidesk's reply brief at page 5 and that was the concept
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`that was just explained to you, and that relies on the
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`Thorner v . Sony case. The Thorner v. Sony case is not an
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`accurate statement of the post-Phillips law on claim
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`construction.
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`If you shepardize that Thorner case you see that it was
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`recognized with disapproval in the Trustee's case by the
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`said in Trustees we have on slide 8 and this is talking
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`about Thorner.
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`The patentee in that case made the same argument
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`that was just made to you about the clear disavowal or
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`lexicography. The Federal Circuit specifically expressly
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`said our case law does not require explicit redefinition or
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`disavowal.
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`Indeed our en bane Phillips opinion rejected
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`this very approach.
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`They're talking about Thorner here, the case that
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`Varidesk relies on. That approach, that clear disavowal or
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`lexicography approach that Thorner sets forth is really the
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`old Texas Digital approach to claim construction and not
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`the Phillips approach to claim construction, and that type
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`of approach the Federal Circuit has said improperly
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`restricts the role of the specification. Of course, as
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`your Honor well knows, you need to look at the
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`specification and that the claim language that most
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`naturally aligns with the description in the specification
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`is the correct construction. We can't ignore the
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`specification. That's overarching point 1 .
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`Overarching point 2, which we disagree with,
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`relates to reliance on earlier specifications. All right.
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`I'm sure your Honor saw in our briefs we talk a lot about
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`the provisional, we talk a lot about the parent and the
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`patents that came before the specifications.
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`Varidesk
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`takes issue with that and says the provisional application
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`does not help
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`Respondents -- we just heard this again this morning
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`because it is the specification of the patents-in-suit that
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`control, and they cite to the Sun Pharma case for that
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`proposition.
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`The Sun Pharma case was an obviousness- type
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`double patenting case distinguishable from what we have
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`here in two ways. One, they weren't really talking about
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`claim construction. There is some dicta about claim
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`construction. That's distinguishable point No. 1. No. 2,
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`unlike the case here, the earlier specification that was
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`being discussed in this case wasn't incorporated by
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`reference into the specification that was at issue and that
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`the court was looking at.
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`Here there's a long history, there's a long
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`history. On slide 13 and in our briefs we presented the
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`Court with the family tree of these patents. These patents
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`have been in prosecution since 2012 and what you'll see is
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`that in that prosecution it started with a very specific
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`disclosure in 2012. And from that simple disclosure
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`Varidesk has basically gotten hundreds of claims, hundreds
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`of claims from that one simple disclosure of a combination
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`of known mechanical components, and as time progressed from
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`2012 until now -- and there are still applications pending
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`-- the words become a little bit more amorphous. So as
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`we' 11 see, "base platform" turns to the "base" phrase that
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`we have, "pins" changes to "anchors, " and so on and so on.
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`The claim language becomes more amorphous.
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`But what's important here is that we start with
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`the provisional and the provisional, as you see on slide
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`14, is specifically incorporated by reference into every
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`other patent. It says that "The entire contents of the
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`foregoing applications are incorporated herein by
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`Why is that important? Because they are now part
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`of the specifications that we're looking at, and that is
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`what the Trustee's case held and the Trustee's case, again,
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`we were looking at defined bit sequence. The court looked
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`back to the earlier specifications because they were
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`incorporated by reference and found that the provisional
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`applications incorporated by reference are effectively part
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`of the specification as though it was explicitly contained
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`therein.
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`Okay. So that's the other overarching issue.
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`It
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`is appropriate in this case for us to look at the
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`specification of the provisional and of the parent which
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`are -- or have been incorporated by reference.
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`The other important thing here is that Varidesk
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`has claimed priority to those earlier applications for the
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`claims that have the terms that we're talking about. So
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`what they're saying is those -- that early provisional
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`application in May of 2012 that provides the support for
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`the "base" phrase, that supplies the support for the
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`"anchor" phrase that we'll get to later.
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`So those are the two overarching issues we
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`disagree with Varidesk on. All right. One, it's
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`appropriate to look at the provisional and, two, you don't
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`construe the claims in view of the specification.
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`We start with the provisional in 2012.
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`I'm sorry. These first two terms of our six are going to
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`take a little bit of time.
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`I think we'll speed up as we
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`get through this.
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`I just want to warn you about that.
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`Sorry.
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`If you start with the provisional in 2012, the
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`provisional discloses "a base platform. " When they went to
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`the Patent Office and they said this is our invention, on
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`slide 17 you see the figure in the provisional, they call
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`this a base platform.
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`Now, Varidesk counsel said, well, that shows that
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`11base 11 is something different from "platform." Well,
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`what's happening here is they're distinguishing the base
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`platform from the desktop platform. The disclosure was an
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`adjustable desk that had an upper platform, a lower
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`platform.
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`These things right here, these feet-like structures are
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`mounting brackets and arms, and then we have mounting
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`brackets on the top too and then there is a method or an
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`apparatus to lock the upper platform into place. The
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`disclosure is as shown on slide 17, upper platform, lower
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`platform.
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`What's important too -- and we'll see this later
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`in a little bit -- is these feet-like structures, they're a
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`different element of the claim. These are the upper
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`mounting brackets.
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`This is essentially what Varidesk is trying to read the
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`base on in the accused products.
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`Okay. The description in the provisional
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`repeatedly and consistently states that the invention has a
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`base platform and that the base platform is intended to set
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`on an existing worker's desk. The original claim of the
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`provisional is consistent. It says "A base having a lower
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`platform."
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`Now, Varidesk and the Staff have said, well, that
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`means a base is something different than a platform. The
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`disclosure is a base that has a lower platform, a base that
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`is a platform as opposed to some other undisclos



