`
`
`
`
`
`
`
`Paper 165
`Entered: March 5, 2014
`
`RECORD OF ORAL HEARING
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`_______________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`________________
`
`ARIOSA DIAGNOSTICS,
`
`Petitioner
`
`V.
`
`ISIS INNOVATION LIMITED,
`
`Patent Owner
`
`____________
`
`Cases IPR2012-00022 and IPR2013-00250
`
`Patent 6,258,540
`
`___________________
`
`Oral Hearing Held January 24, 2014
`
`____________
`
`WITNESSES
`
`Before LORA M. GREEN, FRANCISCO C. PRATS, and JEFFREY B.
`
`ROBERTSON, Administrative Patent Judges.
`
`
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`
`
`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`GREGORY GARDELLA,
`
`KEVIN B. LAURENCE and
`
`DIANNA L. DEVORE
`
`Oblon, Spivak, McClelland, Maier & Neustadt, LLP
`
`1940 Duke Street
`
`Alexandria, VA 22314
`
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`ELDORA L. ELLISON, PH.D. and
`
`MICHAEL J. MALECEK
`
`Kaye Scholer, LLP
`
`Two Palo Alto Square
`
`Suite 400
`
`3000 El Camino Real
`
`Palo Alto, CA 94306-2112
`
`
`1100 New York Avenue, NW
`
`
`
`
`
`
`
`Washington D.C. 20005
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`P R O C E E D I N G S
`
`
`
`JUDGE GREEN: Good morning and welcome. This is
`
`the final oral hearing for the following cases, IPR2012-00022
`
`and 2013-00250. At this time, I would like counsel to
`
`introduce themselves and your colleagues, and I'll start with
`
`the Petitioner.
`
`MR. GARDELLA: This is Greg Gardella, from Oblon
`
`Spivak, on behalf of Petitioner, Ariosa Diagnostics. I'm
`
`joined by Dianna DeVore also of Ariosa Diagnostics.
`
`JUDGE GREEN: Thank you. And Patent Owner?
`
`MS. ELLISON: Good morning. I'm Eldora Ellison,
`
`on behalf of Isis Innovation, and I'm here with Mr. Michael
`
`Malecek. We have several people in the audience. I'm not
`
`sure if you want me to introduce them, as well.
`
`JUDGE GREEN: If they aren't going to be
`
`speaking, I’m not going to worry about it.
`
`MS. ELLISON: Okay. Thank you.
`
`JUDGE GREEN: Thank you. And welcome to the
`
`Board. Consistent with our order, each party has one hour to
`
`present their arguments. Petitioner will proceed first in
`
`the action charged claimed. Petitioner may reserve rebuttal
`
`time for its case and time to respond to objections with
`
`regard to the motion to amend. Thereafter, Patent Owner will
`
`respond to Petitioner's case and also present its own case
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`with regards to the motion to amend claims. Patent Owner may
`
`reserve rebuttal time for its case after the motion to amend
`
`patent claims.
`
`After that, the Petitioner will make use of the
`
`rest of its time responding to Patent Owner's presentation of
`
`all matters. And then if Patent Owner reserves rebuttal
`
`time, Patent Owner will only address the issues raised by the
`
`Petitioner regarding the motion to amend claims.
`
`At this time I would like to ask counsel if they
`
`have the demonstrative -- if they have copies of the
`
`demonstratives for the panel, the other side and the court
`
`reporter. And you can approach the bench.
`
`(Whereupon, the demonstrative was distributed to
`
`all parties.)
`
`JUDGE GREEN: Counsel for Petitioner, you may
`
`proceed when you're ready. And how much rebuttal time would
`
`you like to reserve (indiscernible)?
`
`MR. GARDELLA: A half hour, Your Honor.
`
`JUDGE GREEN: 30 minutes? Okay, thank you.
`
`MR. GARDELLA: Good morning, Judge Green, Judge
`
`Prats, Judge Robertson. Thanks for having us here today. I
`
`would like to start with the broadest reasonable
`
`interpretation. The Board correctly noted that the Patent
`
`Owner's own expert, Dr. Evans, in connection with litigation
`
`analyzed the accused product of Petitioner Ariosa and in his
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`analysis, clearly indicated and reflected in the analysis in
`
`which it was not necessary to distinguish maternal from fetal
`
`DNA, and that's the principal debate between the parties at
`
`this point.
`
`One thing I'd like to bring to your attention is
`
`that in the Article 3 proceedings, to my knowledge, the
`
`Patent Owner, through its exclusive licensee Sequenom, has
`
`never once argued for the limitation, the narrower
`
`construction that it is seeking here. Never once.
`
`Ariosa believed, and still believes, that the
`
`proper Phillips construction is narrower, but that's not the
`
`issue here. The issue here is broadest reasonable
`
`interpretation, which we submit should, at the absolute
`
`minimum, encompass that which has been advocated successfully
`
`by the Patent Owner in Article 3 Core.
`
`JUDGE GREEN: Can you tell us what the status is
`
`of the co-pay litigation, then?
`
`MR. GARDELLA: In the beginning in the district
`
`court, the summary judgment was granted of unpatentable
`
`subject matter under 101. The Court found that the claimed
`
`subject matter was merely discovery, a natural phenomenon.
`
`That is on appeal to the Federal Circuit currently.
`
`JUDGE GREEN: And do you have any idea as to when
`
`that may be heard or you're just looking for the case to be
`
`docketed and set for hearing?
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. GARDELLA: I am not personally familiar with
`
`the specific status. I can ask co-counsel, if you’d like. I
`
`don't believe -- well, actually, come to think of it, I just
`
`saw in the e-mail opposing counsel's brief. So that would be
`
`the Appellant's brief, so it's in briefing. So the ball is
`
`now in Ariosa's court for responsiveness. So I guess I do
`
`know that.
`
`JUDGE GREEN: Okay. Thank you.
`
`MR. GARDELLA: Any other questions about the
`
`district court litigation?
`
`JUDGE GREEN: I was just wanting to know where it
`
`was.
`
`MR. GARDELLA: No, yeah, please with any -- with
`
`any questions. Most of what I’m going to say you already
`
`know. So if you have questions, please don't -- don’t feel
`
`bad about interrupting me.
`
`So also noteworthy is that most of Patent Owner's
`
`experts, especially in their second round, have been using
`
`the narrower definition. So to the extent they apply
`
`non-detect, they're using this narrower definition, which
`
`again was not used, not advocated even by the Patent Owner in
`
`district court. But yet now, they are coming here before
`
`this panel and arguing for broadest reasonable
`
`interpretation, which is actually narrower than the Phillips
`
`construction, which they advocated successfully in the
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`district court. We submit that that attempt should be
`
`rejected. The broadest reasonable interpretation should, at
`
`a minimum, encompass that which was successfully advocated by
`
`the Patent Owner.
`
`And, in particular, their expect Dr. Evans, who
`
`they characterize as one of the luminaries in the field of
`
`prenatal medicine.
`
`JUDGE GREEN: In that regard, I do know that
`
`there was an opinion by Judge Rader, Federal Circuit,
`
`regarding the preliminary injunction. How are we bound by
`
`the instruction or mitigating instruction again called for in
`
`that opinion?
`
`MR. GARDELLA: Well, that is the Phillips
`
`construction. That's not the BRI, that's the thing I'll
`
`start with. But the takeaway from the opinion is this. We
`
`were arguing for a narrower construction -- a narrower
`
`construction under Phillips, which was different than what
`
`Patent Owner is arguing here. It's known in advance, which
`
`is what we thought was really thought-enabled by the patent.
`
`That's what we were are advocating.
`
`And Judge Rader -- I mean the holding really is
`
`just that, no, the claims are not so limited. The claims
`
`that there is no basis in the prosecution history is
`
`insufficient basis to read the claims narrowly. So the
`
`consequence, the holding was they're broad.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`And on remand, the district court then agreed
`
`with Dr. Evans that the claim -- the term “detect” covers
`
`discovery or detecting the existence, presence or fact of.
`
`So that's what the district court found. And then the
`
`question becomes, does that phrase, if one were to accept
`
`that that is the proper construction, does that require or
`
`does it not require distinguishing maternal from fetal, and
`
`Dr. Evans clearly says that it does not. But that is the
`
`import of the Federal Circuit ruling. Again, it is under
`
`Phillips. And closely read, it was rejecting a narrow
`
`construction, which is similar to but not identical to what
`
`Patent Owner is arguing here.
`
`JUDGE GREEN: So I guess with respect to
`
`detecting the presence of paternally inherited nucleic acid
`
`of fetal origin would be comprising language, but that could
`
`include detecting both maternal and fetal, but not
`
`necessarily distinguishing one from the other.
`
`MR. GARDELLA: Correct. Correct. And that's
`
`certainly what's been advocated in district court. In
`
`particular, the Petitioner Ariosa has a non-polymorphic assay
`
`that does not do that. And that has been accused of
`
`infringement. And to my knowledge, that infringement
`
`allegation has been maintained. So that was -- that was the
`
`genesis, if you will, for that coming into issue. And that
`
`is the basis on which Dr. Evans testified and Patent Owner
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`advocated that there is no requirement with the term detect,
`
`that you distinguish maternal from fetal.
`
`So for purposes of this presentation and one
`
`shorthand way I oftentimes think of it in the context of this
`
`case or that I've come to think of it is that the claims
`
`essentially require application and visualization. In the
`
`context of PCR, I think that's an easier way and clearer way
`
`to think of the claim terms under the broadest reasonable
`
`interpretation of the term detect, which again is broader
`
`than their experts have used, and what a lot of people would
`
`use in the field, it essentially requires amplification and
`
`visualization.
`
`JUDGE GREEN: So, it could be when you repeat
`
`that reaction and it may not result.
`
`MR. GARDELLA: Exactly. And if it's there, if
`
`it's part of what was visualized in the gel, in the band,
`
`then it's -- we’ve met the claim language, according to the
`
`Patent Owner's theory and thus the court in PRI.
`
`JUDGE GREEN: Thank you.
`
`JUDGE PRATS: In a strict sense, though, did
`
`Kazakov actually, in using the dictionary definition that
`
`Dr. Evans is advancing, did Kazakov strictly discover,
`
`determine the existence, presence or fact of
`
`paternally-inherited nucleic acid? He never said that it's
`
`there, right?
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. GARDELLA: Yeah, he wasn't able to determine
`
`it with certainty. So if one uses the term detect, as many
`
`scientists would, and -- and there are a bunch of different
`
`synonyms that are implicated by your question -- it is the
`
`case that if you construe the term detect as required in the
`
`(indiscernible) you’re identifying the yes/no, it's fetal for
`
`sure that's in here.
`
`Well, really, let me rephrase it slightly. The
`
`direct answer to your question more properly is this, that
`
`the Patent Owner is advocating that you have to be able to
`
`distinguish the two, but your question, I think, is the much
`
`better one. Did Kazakov detect under even this discover or
`
`determine the presence or fact of, and the answer to that is
`
`yes. And the reason is the -- at least a portion, in all
`
`likelihood the vast majority of what you see, if not the
`
`entirety, of what you see visualized in Kazakov's -- excuse
`
`me, Mansfield's gel was paternally-inherited nucleic acid.
`
`But in Kazakov, at least a portion of it was. So a portion
`
`of the reaction product that was visualized and seen in that
`
`gel is, without question, paternally-inherited fetal nucleic
`
`acid. What the exact percentage is, we don't know.
`
`So that is where the rubber would meet the road.
`
`Would detect require you to know how much of that visualized
`
`band is attributable to paternally-inherited fetal nucleic
`
`acid.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`JUDGE PRATS: Well we know some is, is the best
`
`-- what we're saying. Some percentage say maybe 3.9 to maybe
`
`10 percent that signal comes from -- comes from the fetal.
`
`MR. GARDELLA: Correct. And it may not be quite
`
`that straightforward given the primers that were used. But
`
`given that alleles are essentially evenly spread throughout
`
`the genome, I think that's a fair estimation.
`
`JUDGE PRATS: And that would be at both gels,
`
`Figure 1 and Figure 2 of Kazakov?
`
`MR. GARDELLA: Correct, yes. B1/C2 and Tc65.
`
`JUDGE PRATS: There is the idea, though, that
`
`some of the primer wouldn't -- because fetal nucleic acid
`
`might be too small, at least maybe the B1 and C2 primer
`
`wouldn't give a whole lot of signal.
`
`MR. GARDELLA: You know, that -- with regard to
`
`size, it is important to remember that fetal nucleic acid
`
`exists in a distribution. It is not a step function that
`
`everything exists at a certain base parasize.
`
`Dr. Lo's testimony was that anything -- he tested
`
`for anything below 300. That's consistent with B1/C2 and
`
`Tc65, I believe. At the end of the day, it is the case that
`
`shortness of fragment could cause at least some of that
`
`distribution of cell-free nucleic acid to not be amplified,
`
`because it is too short. But again, it's just a question of
`
`relative amount, not a question of whether it happened.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`JUDGE PRATS: Thank you.
`
`JUDGE GREEN: And then, what was the question
`
`before I let you guys -- I'm sorry, the last question.
`
`MR. GARDELLA: Oh, no, I prefer to answer your
`
`questions than go through my slides.
`
`JUDGE GREEN: What is the status of the challenge
`
`of 102(a) or below? I notice you didn't respond to it in
`
`your reply.
`
`MR. GARDELLA: So as to that, we are not
`
`advocating the -- either Lo under 102(a). The evidence that
`
`was put forward, we thought that in the scheme of things, was
`
`sufficient to cause us to just push the remainder of the
`
`arguments forward. And while we do not concede that their
`
`evidence is sufficient to remove it as prior art, we no
`
`longer contest it for purposes of this proceeding. And we
`
`think it's ample and sufficient to rely upon Kazakov and
`
`Simpson plus Kazakov.
`
`JUDGE GREEN: So when we reach our final
`
`decision, we don't need to reach that portion of the
`
`challenges?
`
`MR. GARDELLA: That is what we're advocating,
`
`correct.
`
`JUDGE GREEN: Thank you. Thank you.
`
`MR. GARDELLA: It is unnecessary.
`
`JUDGE GREEN: Thank you.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`MR. GARDELLA: So again, where we left off before
`
`this couple questions was amplification and visualization,
`
`which is essentially how I think of the claimed technique.
`
`Let's now cover the first slide, please.
`
`SmithKline Beecham stands for the proposition
`
`that the proper inherency analysis under controlling Federal
`
`Circuit law does not require a 100 percent certainty that Dr.
`
`Kazakov back in the early 1990s in fact in his particular
`
`experiment actually amplified and detected
`
`paternally-inherited fetal nucleic acid. Now we think that
`
`it is almost certainly true, by the way, but that's not the
`
`standard. The standard is, is that the natural and ordinary
`
`result of their experimentation.
`
`So to contrast that or rather would it be an
`
`exceptional result or would you have to take exceptional
`
`steps or extraordinary measures to cause the prior art method
`
`to result in the amplification and visualization of the
`
`paternally-inherited fetal nucleic acid? That is the
`
`standard.
`
`We submit that the Patent Owner's case is
`
`entirely or almost entirely directed, at least in their
`
`response, to the theory that the relevant question is, is
`
`there a hundred percent certainty that Kazakov himself, in
`
`that particular experiment, actually amplified and detected
`
`fetal nucleic acids. That is not the question. The question
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`is rather, taking that test, is the ordinary outcome of that
`
`experiment, the amplification and visualization of
`
`paternally-inherited fetal nucleic acid.
`
`Next slide, please?
`
`JUDGE GREEN: What about Patent Owner's argument
`
`that the experiments were not an exact duplicate of what
`
`occurred in the Kazakov records?
`
`MR. GARDELLA: You're referring to Mansfield?
`
`JUDGE GREEN: Yes.
`
`MR. GARDELLA: So the logic flow diagram, the
`
`analysis, we submit should flow like this. You look at
`
`Kazakov's standing alone and ask would a skilled artisan
`
`understand that the natural and ordinary result of that would
`
`be the amplification and detection of paternally-inherited
`
`fetal nucleic acid or amplification and visualization, the
`
`way I refer to it shorthand.
`
`Deininger, Fisk, Nussbaum, Vasioukhin --
`
`again, Nussbaum is the chief of the Division of Genomic
`
`Medicine at UCSF. Vasioukhin is the co-inventor on the final
`
`reference cited in the background section of the '540 Patent.
`
`They both say that they just -- just they can't envision a
`
`circumstance in which if you run this experiment that you
`
`wouldn't, to Judge Prats' point, you wouldn't amplify at
`
`least some and visualize at least some. That is sufficient
`
`standing alone.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Now Kazakov, excuse me, Mansfield. This is
`
`offered as corroborating evidence. So because we, you know,
`
`we happen to have access to the techniques, especially
`
`because we clearly believed and were certain that it was
`
`true, why not run a test and show it? We did so.
`
`Mansfield ran the test, which is simply an
`
`example of what Vasioukhin, Nussbaum, Kazakov himself
`
`testified to, which is if you run this, you will, in fact, in
`
`Dr. Nussbaum's phraseology, "It's hard to even envision a
`
`universe in which you wouldn't amplify and visualize at least
`
`some." So Dr. Mansfield is offered for that.
`
`Now with regard -- I think what you're referring
`
`to is these failures that we’ve heard such about. So on
`
`this, I think we just have a failure to communicate on the
`
`fundamental scientific principles. There were no failures.
`
`There was one Tc65 experiment that was run that was
`
`essentially what you would call kind of a redo of Kazakov.
`
`And then there was another experiment done to determine,
`
`okay, of those reaction products, which of -- let's see if
`
`there are Y-specific reaction products in there. That's a
`
`follow-on test. In those follow-on tests, there was a failed
`
`control. And that is not uncommon. That's just, you know,
`
`freshman laboratory science. When you have a failed control,
`
`you pitch the experiment. That's the Tc65 failure that
`
`you've heard about.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`With regard to B1/C2, it's a -- it is an
`
`intra-Alu primer, so it's a short band. So just to do that
`
`second round, to just -- for this double-check to determine,
`
`hey, were there actually Y-specific sequences in there, which
`
`would be relevant, for instance, for Claim 5, designing
`
`Y-primers for the B1/C2 would be pretty difficult because
`
`it's an intra-Alu primer. So that being pretty difficult --
`
`and again, it's not required for the anticipation analysis,
`
`it made a lot of sense to us to do two Tc65s. It's much
`
`easier to find Y-specific primers to do that double-checking
`
`confirmation that, yes, there were in fact Y-specific
`
`sequences amplified. So the B1/C2 was just not done by
`
`Professor Mansfield for that reason.
`
`So I don't understand the argument there were
`
`failures. That is what happened. And perhaps we'll hear
`
`during opposing counsel's time why they feel that there are
`
`failures, but we do not believe there were any internal
`
`failures. There was one Tc65 experiment done, and it was
`
`successful.
`
`JUDGE GREEN: I think one part of me that senses
`
`that reaction at issue and therefore we can't consider it at
`
`all, because there was a range of (indiscernible) immediate
`
`concentration.
`
`MR. GARDELLA: So let's go to Slide 4. So this
`
`goes to do you have to have -- what sort of detail do you
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`have to have in a prior art reference in order to be
`
`enabling, sufficiently enabling for purposes of inherency?
`
`The replication -- kind of implicit in that argument is that,
`
`well, there's just not enough detail in Kazakov. Also,
`
`implicit in that argument, by the way, is that what's
`
`relevant is whether Kazakov himself, in fact, in the early
`
`1990s reproduced it. That's not the question. The relevant
`
`question under SmithKline Beecham is, is the natural result
`
`flowing from it, the claimed subject matter amplification and
`
`10
`
`--
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`JUDGE PRATS: If I could interject on that point,
`
`there are some cases that say -- you're proposing an almost
`
`certainty standard as submitted in your brief, but there are
`
`some cases that say you have to have -- absolutely be
`
`certain, and that's the standard for inherency. Now, how do
`
`we -- why should we follow your cases as opposed to these
`
`other cases? I can -- the one I'm seeing here is Agilent
`
`versus Affymetrix, but there's a number of cases that say
`
`absolute certainty is required for inherency, and you're
`
`saying, well, maybe it's not. What's the difference in that
`
`case?
`
`MR. GARDELLA: Well, at SmithKline -- if you can
`
`go back to the SmithKline slide, Slide 1. So 2005 Chief
`
`Judge Rader, the specific issue was addressed. You know,
`
`every case involves a different circumstance. SmithKline
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`Beecham involved a circumstance where it was alleged -- and
`
`this we think is quiet germane to our situation. The case
`
`you're referring to, I would suspect is not in this type of
`
`situation where you have a prior art process, which if you
`
`run it in an unusual way or, let's say, you just mess up the
`
`experiment, there is human or experimental error, it might
`
`not result in the claimed subject matter.
`
`The context of those other decisions are quite
`
`different. The way I understand the body of case law to
`
`which you're referring, Judge Prats, is that it has to be
`
`what happens. It can't just be a maybe. So, in other words,
`
`if there's four outcomes that can happen from a prior art
`
`process of any nature, it's not sufficient that the claimed
`
`subject matter be one of those four.
`
`Here we're talking about something different.
`
`Here we're talking about chemistry, biology, an experiment,
`
`which by its very nature can -- there can be an experimental
`
`error such as pipetting error. So in the context of a
`
`situation like this where you have, yes, the natural and
`
`successful -- or natural result of the successful experiment.
`
`And again, in context everyone knows that an experiment like
`
`this is not always successful because we're human.
`
`In this context, that specific argument was
`
`raised by the Patent Owner that well, you don't know for
`
`sure. It's possible that this other reaction product
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`resulted from that prior art experiment. Chief Judge Rader
`
`said no. That is too exacting a standard. What we're
`
`getting at here in this type of situation, what we care about
`
`is, is this what normally results from it or is rather it an
`
`exceptional result?
`
`So this is not a circumstance -- for instance, I
`
`guess I could envision various chemical reactions which have
`
`the equilibrium and perhaps several different potential
`
`reaction products. The case law that you're referring to
`
`would be apropos for those situations here properly run,
`
`unless something unusual happens, like a human error or
`
`equipment error, we know what's going to happen here. Again,
`
`like Dr. Nussbaum and Dr. Vasioukhin said, they can't even
`
`conceive of an universe in which in the ordinary course you
`
`wouldn't get amplification and visualization of
`
`paternally-inherited fetal nucleic acid.
`
`So I submit that a close reading of the cases
`
`show that SmithKline Beecham is clearly controlling. And
`
`logic would dictate that as well. Because under the Patent
`
`Owner's standard, you could never have anticipation in any
`
`sort of -- in any area of science like this, because it's
`
`hard for me to envision in a biological arts any experiment
`
`which with 100 percent certainty must have been successful,
`
`that it couldn't possibly have been due to some experimental
`
`or equipment error.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`So we submitted, the Patent Owner standard is
`
`just illogical and would lead to the anomalous result that
`
`you could essentially never have inherent participation. And
`
`that is precisely what Chief Judge Rader was observing.
`
`That's just -- that's just not right. What we care about is,
`
`is it the normal result when it's done properly? So just
`
`like Noemi Corbetta, Dr. Lo's lab assistant said, "Everyone
`
`knows that when it's a failed experiment, you just pitch it
`
`and you do it again."
`
`JUDGE PRATS: Thank you.
`
`MR. GARDELLA: So I have a couple minutes left.
`
`Any other questions before we continue for a few minutes?
`
`JUDGE GREEN: Actually, I think we've kind of
`
`talked a lot about the inherency. I would like to go a
`
`little bit about the obviousness objection.
`
`MR. GARDELLA: Yes.
`
`JUDGE GREEN: Especially to the extent that it’s
`
`based on Simpson. We have one line of Simpson. And Simpson
`
`is really about the self-reporting and looking at the fetal
`
`fraction, the fetal DNA themselves.
`
`Is that one sentence that Lo -- and I'm looking
`
`at page 1230 of Simpson. Lo held that was the first to show
`
`that fetal cell or at least fetal DNA was indeed present in
`
`the blood. Is that enough combined with Kazakov to render
`
`obvious to method when people were actually at the time and
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`period to be looking at the DNA cells and not the DNA serum
`
`of the plasma which the Patent Owner argues?
`
`MR. GARDELLA: I am glad you raised this. And
`
`may I go a little bit beyond my 30 minutes and reserve a
`
`little less time?
`
`JUDGE GREEN: We’re asking a lot of questions, so
`
`we can go a little bit beyond.
`
`MR. GARDELLA: Okay. Yeah, obviously, I'll yield
`
`the carryover time. So, good question. And it's important
`
`to note that Simpson and Kazakov applies universally. This
`
`is the common denominator in the case. Simpson and Kazakov
`
`applies even if you accept Patent Owner's claim construction,
`
`which again is narrower than the Phillips construction that's
`
`been adopted in district court. Even if you accept that and
`
`even if you enter the amended claims, Simpson plus Kazakov
`
`applies across the board.
`
`Now, Simpson plus Kazakov properly -- let's get
`
`Slide 5 up if we could? It is a very simple substitution as
`
`Your Honor correctly indicated in the decision. We're
`
`talking about taking the Simpson method -- and Simpson's body
`
`of literature was cited in the back in the Section on the
`
`'540 Patent too. Just taking the method disclosed in
`
`Simpson, which is PCR on the cellular fraction and
`
`substituting in a different starting material. That's it.
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`So for purposes of the prima facie case -- and
`
`here's the important point, I think, as to this generalized
`
`belief we've heard so much about. There was a generalized
`
`belief in the art, at least on the prenatal side, not on the
`
`molecular diagnostic side, not with folks like Professor
`
`Vasioukhin. Anyone on the molecular diagnostic side that
`
`suspected this is -- that's my take on the evidence in totum.
`
`People in the prenatal space were skeptical, people in the
`
`molecular diagnostic space like Professor Vasioukhin were
`
`not.
`
`But the key thing is, a skilled artisan who has
`
`skill probably in both of those fields, this art is cited in
`
`the background section of the patent, and Dr. Lo himself in
`
`his 1997 paper said it was this work in the molecular
`
`diagnostics field which prompted this investigation. So this
`
`is part of the skill in the art. The question is, in the
`
`inventor's work room you have two things. You don't have
`
`that generalized belief. You have Simpson and Kazakov. You
`
`have Simpson and you have Kazakov.
`
`You have Simpson, which says, it's known to do
`
`standard PCR techniques that were around back in the 1980s on
`
`cellular fractions, you know, to test for, you know, fetal
`
`nucleic acid. You take that, consider further the fact that
`
`Simpson teaches that trophoblasts and lymphocytes would
`
`probably be the sources, are good sources, and also proposes
`
`
`
`Cases IPR2012-00022 and IPR2013-00250
`Patent 6,258,540
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`testing for gender, RhD and fetal aneuploidy, very similar to
`
`the Lo patent.
`
`Most importantly, though, Simpson says, and now
`
`I'm quoting from the bottom left of page 1230, that it says
`
`he credits Lo as being the first to show that fetal cells or
`
`at least fetal DNA existed in the maternal blood. So what is
`
`he suggesting there? Well, it might not be cellular. So
`
`that's one piece on the inventor's workshop wall.
`
`The other piece is Simpson -- I'm sorry, is
`
`Kazakov. And Kazakov clearly states -- and let's go here to
`
`-- the Kazakov quote, if you could up in the -- the tail end
`
`of the article.
`
`That there can be only two sources. What's not
`
`on this slide, which is very interesting, I repeatedly in the
`
`Kazakov article -- he provides a road map and says it's of
`
`great clinical interest and practical and theoretical
`
`interest he said at one point in th