`Tel: 571-272-7822 Entered: August 26, 2014
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`DYNAMIC DRINKWARE, INC.
`Petitioner,
`
`v.
`
`NATIONAL GRAPHICS, INC.
`Patent Owner.
`____________
`
`Case IPR2013-00131
`Patent 6,635,196
`____________
`
`Held: July 24, 2014
`____________
`
`
`
`Before: TRENTON WARD, THOMAS L. GIANNETTI, and
`MITCHELL G. WEATHERLY, Administrative Patent Judges.
`
`
`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`MATT McCLEAN, ESQUIRE
`
`
`PATRICK BERGIN, ESQUIRE
`
`
`Davis & Kuelthau
`
`
`111 E. Kilbourn Avenue, Suite 1400
`
`
`Milwaukee, Wisconsin
`
`
`
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`ON BEHALF OF PATENT OWNER:
`
`
`MICHAEL GRIGGS, ESQUIRE
`
`
`SARAH WONG
`
`
`Boyle Fredrickson
`
`
`840 N. Plankinton Avenue
`
`
`Milwaukee, Wisconsin
`
`
`
`The above-entitled matter came on for hearing on Wednesday,
`July 24, 2014, commencing at 10:00 a.m., at the U.S. Patent and
`Trademark Office, 600 Dulany Street, Alexandria, Virginia.
`
`
`
`
`
`
`
` P R O C E E D I N G S
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`- - - - -
`
`JUDGE GIANNETTI: Please be seated.
`
`So, good morning, everyone.
`
`ALL COUNSEL: Good morning.
`
`JUDGE GIANNETTI: We are here for final hearing in
`
`21
`
`case IPR2013-01131, Dynamic Drinkware, LLC, vs. National
`
`22
`
`Graphics, Inc. I'm Judge Giannetti. To my right is Judge Ward; to
`
`23
`
`my left is Judge Weatherly. We're the panel for this hearing.
`
`24
`
`May I have appearances of counsel, please? Who is
`
`25
`
`appearing for the Petitioner?
`
`26
`
`MR. MCCLEAN: Yes, thank you. My name is Matt
`
`27
`
`McClean. I'm appearing on behalf of the Petitioner, Dynamic
`
`28
`
`Drinkware. With me is co-counsel Patrick Bergin.
`
`
`
`
`
` 2
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE GIANNETTI: And who's appearing for the
`
`Patent Owner?
`
`MR. GRIGGS: Yes, thank you. Good morning. My
`
`name is Michael Griggs. I'm from Boyle Fredrickson, representing
`
`the Patent Owner, National Graphics, Inc., and with me is my
`
`colleague Sarah Wong.
`
`JUDGE GIANNETTI: Okay. So, Counsel, we set one
`
`hour per side for this hearing. Each side will have an opportunity to
`
`reserve time for rebuttal. The rebuttal of the Patent Owner is limited
`
`10
`
`to addressing the motion to amend, which should be -- if you are
`
`11
`
`going to address the motion to amend, Petitioner should include it in
`
`12
`
`your main argument.
`
`13
`
`Okay, I think we're ready to proceed. Any questions
`
`14
`
`from counsel?
`
`15
`
`MR. MCCLEAN: One question, a quick clarification.
`
`16
`
`You would like us to address the motion to amend --
`
`17
`
`JUDGE GIANNETTI: No. The motion to amend should
`
`18
`
`be -- I had that wrong. Motion to amend should be addressed by
`
`19
`
`Patent Owner; then you will have an opportunity to respond in your --
`
`20
`
`in your reply.
`
`21
`
`22
`
`MR. MCCLEAN: In our second session.
`
`JUDGE GIANNETTI: And then they will have a chance
`
`23
`
`to rebut that in their rebuttal.
`
`24
`
`MR. MCCLEAN: Okay, thank you.
`
`
`
`
`
` 3
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`JUDGE GIANNETTI: The Patent Owner's rebuttal is
`
`limited to the motion to amend.
`
`Okay. Who will be presenting the argument for the
`
`Petitioner?
`
`ready.
`
`MR. MCCLEAN: Initially, I will, Judge.
`
`JUDGE GIANNETTI: Mr. McClean?
`
`MR. MCCLEAN: Yes, sir.
`
`JUDGE GIANNETTI: You can proceed when you are
`
`MR. MCCLEAN: Thank you.
`
`JUDGE GIANNETTI: Just wait a second here. We
`
`12
`
`will --
`
`13
`
`MR. MCCLEAN: Do the judges have a preference if I'm
`
`14
`
`at the podium or at the table?
`
`15
`
`JUDGE GIANNETTI: I think that's up to you. I think
`
`16
`
`we have a preference for the podium because there's a microphone
`
`17
`
`there, so if that's not too inconvenient.
`
`18
`
`19
`
`MR. MCCLEAN: Not at all.
`
`JUDGE GIANNETTI: Let me -- just give me a second
`
`20
`
`here to start the timer.
`
`21
`
`22
`
`Okay, you can proceed now.
`
`MR. MCCLEAN: Thank you.
`
`
`
`
`
` 4
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`I'd like to reserve the last 30 minutes to address the
`
`motion to amend and any reply arguments that may come up with
`
`respect to the petition, if that's all right.
`
`JUDGE GIANNETTI: That's fine. And we will try to
`
`give you a warning a few minutes before your -- when you're into
`
`your rebuttal time.
`
`MR. MCCLEAN: Thank you.
`
`Well, to the Panel, good morning again. My name is
`
`Matt McClean of the law firm of Davis & Kuelthau from Milwaukee,
`
`10
`
`Wisconsin. I am here on behalf of the Petitioner, Dynamic
`
`11
`
`Drinkware.
`
`12
`
`We have submitted now a series of briefs and exhibits
`
`13
`
`that I trust you have had an opportunity to get through and review. I'd
`
`14
`
`like to use my time initially this morning to really summarize and hit
`
`15
`
`on a couple of key points.
`
`16
`
`The '196 patent, which is the Goggins patent that we put
`
`17
`
`for review, describes a process for incorporating a lenticular image
`
`18
`
`into a molded plastic article. As I think the Petitioner -- the Patent
`
`19
`
`Owner contends, admits, says in their patent, it does not involve the
`
`20
`
`invention of -- the creation of lenticular images; it does not involve
`
`21
`
`the invention of molded plastic, generally, or the introduction of
`
`22
`
`molded plastic to create in-molded image-like cups, like other
`
`23
`
`commercial goods. All of that stuff is long-developed prior art.
`
`
`
`
`
` 5
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`What the '196 patent claims to do is to address an
`
`industry desire for the marriage of that lenticular technology with the
`
`in-mold technology. And the '196 states as its key element, its key
`
`invention on that point, the establishment of control over the
`
`temperature, pressure, and turbulence used in the introduction of the
`
`molten plastic, such that you minimize the distortion of the lenticular
`
`lens, which is around the outside, and the degradation of the interlaced
`
`image that is underneath the lens, the picture, the color, the effect.
`
`Now, the problem with that with respect to the '196
`
`10
`
`patent and the reason we put it for review is that Mr. Raymond
`
`11
`
`already did that with his patent 7,153,555, which we put forward as
`
`12
`
`Exhibit 1003. We submitted the Raymond patent and claimed it
`
`13
`
`anticipated the '196 patent, and this Panel issued a preliminary
`
`14
`
`decision on that point.
`
`15
`
`Initially, when we put that position forward, the Patent
`
`16
`
`Owner came forward and said, well, no, it doesn't anticipate.
`
`17
`
`Mr. Raymond's patent, the '555 patent, does not attempt to control the
`
`18
`
`temperature, pressure -- the pressure, temperature, and turbulence
`
`19
`
`parameters that my '196 patent does.
`
`20
`
`Now, as this Board recognized, the '555 patent and the
`
`21
`
`'196 patent both have as their primary focus the minimization of that
`
`22
`
`distortion of the lens and the degradation of the interlaced image.
`
`23
`
`Mr. Raymond does it also by introducing molten plastic at some
`
`
`
`
`
` 6
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`temperature, pressure, and turbulence, and he provides a substrate to
`
`protect that ink layer.
`
`This Panel has determined that, in granting our petition,
`
`that the claims 1 and claims 12 of that '196 patent are reasonably
`
`likely to be anticipated by Mr. Raymond's '555 patent.
`
`After that -- that was done in October of last year. After
`
`that decision by the Panel, the Patent Owner was given a chance to
`
`file a response, and they did so in January. At that time, they made no
`
`further attempt to challenge the anticipation finding or offer any
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`additional evidence or argument regarding anticipation; instead, they
`
`11
`
`elected to focus their attention on claiming that actually, no, we were
`
`12
`
`first; we conceived of and we diligently reduced to practice the
`
`13
`
`invention of the '196 before Mr. Raymond's '555 patent was
`
`14
`
`submitted.
`
`15
`
`Now, the first flaw with this contention and with their
`
`16
`
`presentation in January is it is at direct odds with the testimony of the
`
`17
`
`actual named inventor. The actual named inventor was a gentleman
`
`18
`
`by the name of Timothy Goggins. Mr. Goggins was a long-time
`
`19
`
`employee of the Patent Owner. He left some years ago. The Patent
`
`20
`
`Owner has conceded in discovery, both written and in deposition, that
`
`21
`
`Mr. Goggins, of course, as the inventor, is the person most
`
`22
`
`knowledgeable about what went in and around and for the '196 patent,
`
`23
`
`how he did it, that process, that invention.
`
`
`
`
`
` 7
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`And Mr. Goggins, in a declaration that's been submitted
`
`to this Panel, establishes that from his recollection, he didn't conceive
`
`and develop the process embodied in the '196 patent until sometime in
`
`the summer or fall of 2000. His provisional application was in June.
`
`His utility application was in November of that year. Sometime in
`
`between those two dates, he thinks he had it.
`
`The Patent Owner has not seen fit to question
`
`Mr. Goggins on these points to date. They have not submitted any
`
`testimony from him that undermines his declaration. They haven't
`
`10
`
`submitted any counter or cross-testimony that might undermine his
`
`11
`
`declaration.
`
`12
`
`Instead, they have offered testimony from their owner,
`
`13
`
`Mr. Krause, and one of their other past employees, a Mr. Matt
`
`14
`
`Walker. Both of those gentlemen provide what they know about the
`
`15
`
`conception and reduction to practice of the '196 patent. Of course,
`
`16
`
`neither of them are inventors. They also -- neither of them -- see fit to
`
`17
`
`offer any testimony, any corroborating documents to show when
`
`18
`
`Mr. Goggins conceived of the invention that is embodied in the '196
`
`19
`
`patent.
`
`20
`
`They don't talk about when he had each and every
`
`21
`
`limitation that that patent contains. Their declarations are completely
`
`22
`
`silent on this point. We know only from those declarations when
`
`23
`
`Mr. Walker says he had the idea to test in-mold labeling using
`
`24
`
`lenticular images, which was sometime in December of 1999.
`
`
`
`
`
` 8
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`If we consider the invention as I initially described, as the
`
`process of controlling the parameters of temperature, pressure, and
`
`turbulence to protect the underlying image, that -- if that had to be
`
`conceived of, nothing that we've gotten from the Patent Owner says
`
`when that happened.
`
`JUDGE GIANNETTI: Let me just stop you there,
`
`Counsel.
`
`MR. MCCLEAN: Sure.
`
`JUDGE GIANNETTI: I want to ask you about
`
`10
`
`Mr. Goggins right now. Now, he was with National Graphics for 20
`
`11
`
`years, about 20 years?
`
`12
`
`13
`
`MR. MCCLEAN: I think that's correct.
`
`JUDGE GIANNETTI: So, he is employed right now by
`
`14
`
`a company called Pixalen?
`
`15
`
`16
`
`MR. MCCLEAN: Yes.
`
`JUDGE GIANNETTI: And they are in this field of
`
`17
`
`injection molding. Is that right?
`
`18
`
`MR. MCCLEAN: They are in the field of the creation of
`
`19
`
`the lenticular images. They do not do injection molding.
`
`20
`
`JUDGE GIANNETTI: But they are in this general field
`
`21
`
`of lenticular images. Is that right?
`
`22
`
`MR. MCCLEAN: They will make lenticular images that
`
`23
`
`will be injected -- that will go into the injection molding process done
`
`24
`
`by others.
`
`
`
`
`
` 9
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE GIANNETTI: I believe that in his declaration,
`
`Mr. Goggins said that his company, Pixalen, he's the studio director
`
`for the company. Is that right?
`
`MR. MCCLEAN: Correct.
`
`JUDGE GIANNETTI: That his company is related to the
`
`Petitioner. Can you elaborate on that?
`
`MR. MCCLEAN: I can. Mr. Goggins was hired to
`
`essentially run and create the Pixalen -- the Pixalen Studios
`
`Enterprises as a -- as a sister company, if you will, or a subsidiary
`
`10
`
`company owned by a company -- owned by the ownership that owns a
`
`11
`
`company called Pacur. Pacur would be the umbrella that has
`
`12
`
`ownership interest of both Dynamic Drinkware, other, and Pixalen.
`
`13
`
`JUDGE GIANNETTI: So, you would say that it is a
`
`14
`
`sibling company to the Petitioner. Is that right?
`
`15
`
`16
`
`MR. MCCLEAN: I would. I would.
`
`JUDGE GIANNETTI: So, why should we give his
`
`17
`
`testimony weight? Isn't he an interested witness?
`
`18
`
`MR. MCCLEAN: I think he is -- I don't think he has an
`
`19
`
`interest in the technology being -- his old technology being patented
`
`20
`
`or not patented. He's got his system now in place. The credibility, I
`
`21
`
`think, comes with what can corroborate his version of events versus
`
`22
`
`what -- the lack of corroboration for what I would offer is the Patent
`
`23
`
`Owner's events.
`
`
`
`
`
` 10
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`If we're going to get into a credibility contest, I would
`
`suggest we step back and say, okay, what do the other circumstances,
`
`documents, and facts show as to who's probably right? And if we do
`
`that, Mr. Goggins is -- is going to be unassailable.
`
`JUDGE GIANNETTI: So, we have to take into account
`
`the fact that Pacur is a common parent to Petitioner and Pixalen, when
`
`we review Mr. Goggins' testimony, wouldn't you say?
`
`MR. MCCLEAN: Well, I don't think it's relevant to the
`
`IPR proceeding, but I can't get around the fact that there is a
`
`10
`
`contemporaneous infringement proceeding going on in the Eastern
`
`11
`
`District of Wisconsin in which Dynamic Drinkware -- not Pixalen, but
`
`12
`
`Dynamic Drinkware -- is a defendant. So, the invalidation of that --
`
`13
`
`of the patent here has an impact on that -- on that litigation, but that
`
`14
`
`impacts Dynamic Drinkware, which while related, Mr. Goggins has
`
`15
`
`no ownership interest, Pixalen has no direct financial interest in what
`
`16
`
`happens with Dynamic Drinkware.
`
`17
`
`They make images. Dynamic Drinkware makes, most
`
`18
`
`specifically, some of the file material that goes into the -- that will get
`
`19
`
`sent off to a printing company and make the sheets. Pacur sells the
`
`20
`
`sheets, and then those sheets become the lenticular labels.
`
`21
`
`JUDGE GIANNETTI: But isn't it true that there is
`
`22
`
`common ownership of these companies so that they are related in that
`
`23
`
`sense?
`
`24
`
`MR. MCCLEAN: Yes, but not by Mr. Goggins.
`
`
`
`
`
` 11
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE GIANNETTI: But Mr. Goggins works for --
`
`they both -- both your client and Mr. Goggins --
`
`MR. MCCLEAN: He works for the common ownership.
`
`JUDGE GIANNETTI: Right, work for the same
`
`company.
`
`MR. MCCLEAN: Correct.
`
`JUDGE GIANNETTI: And Price against Symseksays
`
`that's a factor we should look at in determining these factors.
`
`MR. MCCLEAN: And I agree it's a factor you should
`
`10
`
`look at, but I think the -- the antedation argument is one that will be
`
`11
`
`advanced by the Patent Owner, and the question is going to be, do
`
`12
`
`they have corroboration to get around Mr. Raymond, who is not
`
`13
`
`affiliated with any of those companies?
`
`14
`
`JUDGE GIANNETTI: Well, you started your argument
`
`15
`
`by referring to Mr. Goggins, and I just wanted to make sure that the
`
`16
`
`record is clear what his interests are.
`
`17
`
`MR. MCCLEAN: He is related to the companies. He
`
`18
`
`does not have a direct financial interest in the outcome of these
`
`19
`
`proceedings, but his employer does.
`
`20
`
`21
`
`JUDGE GIANNETTI: Okay, thank you.
`
`JUDGE WEATHERLY: To what extent, if any, does
`
`22
`
`Pixalen do business with companies other than Dynamic Drinkware?
`
`23
`
`MR. MCCLEAN: I know they do some. I don't
`
`24
`
`represent Pixalen directly, and they're not a party to any of the
`
`
`
`
`
` 12
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`litigation, so I can't speak on that with any real authority, but Dynamic
`
`is not their sole -- is not their sole customer.
`
`JUDGE WEATHERLY: As far as you know?
`
`MR. MCCLEAN: As far as I know.
`
`JUDGE WEATHERLY: Okay.
`
`JUDGE GIANNETTI: You can proceed.
`
`MR. MCCLEAN: Thank you.
`
`JUDGE WARD: Mr. McClean, actually let me ask you
`
`one question --
`
`MR. MCCLEAN: Sure.
`
`JUDGE WARD: -- about a statement you made about
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`Mr. Goggins' testimony, and if I understood you correctly, you said
`
`13
`
`that Mr. Goggins testified that in the fall of 2000, he actually reduced
`
`14
`
`to practice the claimed invention of the '196 patent. Was that a correct
`
`15
`
`summary of your statement?
`
`16
`
`17
`
`MR. MCCLEAN: Yes.
`
`JUDGE WARD: And does the Petitioner agree with
`
`18
`
`Mr. Goggins' testimony, that the claimed invention was reduced to
`
`19
`
`practice in the fall of 2000?
`
`20
`
`21
`
`MR. MCCLEAN: We do.
`
`JUDGE WARD: Okay. Looking particularly at
`
`22
`
`Mr. Goggins' declaration, paragraph 21 of his declaration, he provides
`
`23
`
`a picture of a cup, which I would generally refer to as the fish cup.
`
`24
`
`MR. MCCLEAN: I know what you mean.
`
`
`
`
`
` 13
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE WARD: Is that -- do you understand that to be
`
`the actual item that constituted his reduction to practice in the fall of
`
`2000?
`
`MR. MCCLEAN: I understand that to be Mr. Goggins'
`
`recollection -- and we have no evidence that would counter that -- that
`
`cup, the fish cup, we provided some exhibits that sort of make
`
`reference to it and the testing of it, and Mr. Goggins' recollection is
`
`that cup came out of a molding session with a company called Grimm,
`
`Grimm Industries, I believe, who was an injection molder, and that
`
`10
`
`cup was when he felt, "Voila, I've got it, this is what we've been trying
`
`11
`
`to do."
`
`12
`
`That cup -- that -- he didn't have that image until the
`
`13
`
`summer, and between the summer and when he submitted it with the
`
`14
`
`images affixed in his November 22 utility patent, he doesn't have an
`
`15
`
`exact date, but that's why I've given you that range, that by November
`
`16
`
`22, when it appears, as drawn, as a figure, he felt like this -- he used
`
`17
`
`that figure because that was when he identified a reduction to practice
`
`18
`
`of his invention.
`
`19
`
`JUDGE WARD: And is it the Petitioner's contention that
`
`20
`
`the compact case, which was created in March of 2000, in affiliation
`
`21
`
`with the company Rexam, was not an actual reduction to practice of
`
`22
`
`the claimed invention?
`
`23
`
`MR. MCCLEAN: That is correct.
`
`
`
`
`
` 14
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE WARD: So, Mr. McClean, can you delineate for
`
`the Panel the differences between that compact case and the fish cup
`
`and why, in fact, the compact case isn't a reduction to practice, but the
`
`fish cup is?
`
`MR. MCCLEAN: I can. The compact case, which might
`
`be present in the room, but it is a small -- you've seen the picture of it.
`
`I believe it's a small piece of plastic, has a black bottom, a plastic
`
`black bottom, and then a clear plastic cover that has the lenticular
`
`image in it. And I would suggest don't take my word for it, take the
`
`10
`
`word of Mr. Roberts, our expert, who examined this compact case.
`
`11
`
`If you look at the compact case with the naked eye, the
`
`12
`
`image has very little -- I believe it is intended to change color. It has
`
`13
`
`very little change of color; some, it does have some, but very little.
`
`14
`
`The gate on that compact case folds over -- where it latches is kind of
`
`15
`
`a clam close, the latch comes around. There's a little plastic gate
`
`16
`
`there, a little nipple where the plastic -- the mold plastic would have
`
`17
`
`come in.
`
`18
`
`If you look at the image there, the -- the color is in kind
`
`19
`
`of a semicircle way blown away from that gate. That is degradation to
`
`20
`
`the lenticular image.
`
`21
`
`JUDGE GIANNETTI: So, how much perfection are you
`
`22
`
`requiring here? That's one of the problems I have with Mr. Roberts'
`
`23
`
`declaration, is that he used a very high-powered microscope. So, is
`
`24
`
`that the correct test?
`
`
`
`
`
` 15
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`I mean, should we be taking the word of an expert who
`
`put these devices under a microscope to determine whether -- whether
`
`there are flaws, or should it be something more related to how they
`
`would appear to a consumer?
`
`MR. MCCLEAN: I think we ought to probably factor in
`
`both. I -- and what I've described as far as the blow-out is visible with
`
`the naked eye, so before you involve the lens. The standard, I think,
`
`ought to be not whether it might get sold to a young high school girl
`
`who wants just to see the color, but whether, as the Board has defined
`
`10
`
`it, we've got an invention that claims to minimize the distortion and
`
`11
`
`degradation, which the Board has defined as functionally eliminated.
`
`12
`
`JUDGE GIANNETTI: Well, I wouldn't say that that's
`
`13
`
`exactly my understanding of our claim construction.
`
`14
`
`15
`
`MR. MCCLEAN: Okay.
`
`JUDGE GIANNETTI: We talk about the intended visual
`
`16
`
`effect, and "intended" I would think would mean intended for the
`
`17
`
`person who's going to use the product rather than an expert with a
`
`18
`
`300-power microscope. Would you agree with that?
`
`19
`
`MR. MCCLEAN: If that's how you would interpret
`
`20
`
`"functionally eliminated," then I would defer to your understanding. I
`
`21
`
`think the -- I think there's room for some review of both -- of both
`
`22
`
`here, and as I've described, you can look at the image and see it is not
`
`23
`
`a very good image in its -- in its manipulation. You can look at the
`
`
`
`
`
` 16
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`image without -- again, without a microscope and see the blow-away
`
`at the gate.
`
`When you look at the lens -- I'm sorry. When you look
`
`through the microscope and you look at the lenticular lens, you then
`
`understand why the image is very soft and doesn't change color,
`
`because those lenses are flattened and melted from the heating
`
`process, which if your desire is to minimize distortion of the lens, that
`
`process hasn't been accomplished. From a skilled-in-the-art invention
`
`standard, that hasn't been accomplished with that makeup case,
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`because the lenses are --
`
`11
`
`JUDGE GIANNETTI: But your contention is that would
`
`12
`
`be accomplished for the fish cup?
`
`13
`
`MR. MCCLEAN: And it was accomplished with the fish
`
`14
`
`cup. Now, that's me, the lawyer. That's also -- Mr. Goggins, the
`
`15
`
`inventor, felt the same way.
`
`16
`
`JUDGE GIANNETTI: I thought he said the cup wasn't
`
`17
`
`perfect. Didn't he say that in his declaration?
`
`18
`
`MR. MCCLEAN: I think he says it wasn't perfect, but he
`
`19
`
`says that was a reduction to practice to his satisfaction. The makeup
`
`20
`
`case was not. Mr. Walker, who originally said, when I saw the
`
`21
`
`makeup case in 2000, thought it was a successful reduction to process,
`
`22
`
`took one look at it at his deposition and recognized that it -- that it was
`
`23
`
`not, that it had these failings.
`
`
`
`
`
` 17
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`Now, that opens the question as to what happened to it
`
`over a period of 14 years, but we don't -- we don't have an answer to
`
`that.
`
`JUDGE WARD: But, Mr. McClean, isn't the ultimate
`
`question, then, the level of satisfaction that will be necessary when
`
`properly construing claim 1? And I want to ask you particularly about
`
`our construction of the claim limitation "minimizes any distortion to
`
`the lenticular lens and any degradation."
`
`Do you accept our construction as provided in the
`
`10
`
`decision to institute? Does the Petitioner accept that construction?
`
`11
`
`MR. MCCLEAN: I accept it -- I do accept that with
`
`12
`
`what was my understanding that it included a skilled-in-the-art
`
`13
`
`standard, not necessarily a customer standard. That was my
`
`14
`
`impression of it. If you are meaning to narrow it down to a customer
`
`15
`
`standard, I disagree with it to that extent. I think you do need -- I
`
`16
`
`think there is a place for -- when we're talking about what is the art,
`
`17
`
`we ask the people that know the art, and if they say it's not -- it doesn't
`
`18
`
`successfully show reduction to practice, I think that this Panel ought
`
`19
`
`to consider that.
`
`20
`
`JUDGE WARD: Mr. McClean, what is your proposal,
`
`21
`
`then, for the proper person of skill in the art with respect to claim 1?
`
`22
`
`MR. MCCLEAN: What's my proposal to create a
`
`23
`
`standard?
`
`
`
`
`
` 18
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE WARD: You're saying that you don't agree that
`
`it's the consumer. Define who it should be.
`
`MR. MCCLEAN: I think the -- I think someone skilled
`
`in the art. I think that includes people that would be familiar with
`
`mold technology and be familiar with lens technology. I don't know
`
`that it has to go to the level of microscopic inspection, but I think the
`
`opinions of those who know it is -- are the opinions we ought to -- the
`
`panel ought to consider.
`
`I would note that if the contention from the Patent Owner
`
`10
`
`is that, well, it might be acceptable from a consumer standpoint, says
`
`11
`
`who?
`
`12
`
`JUDGE WEATHERLY: Is there any testimony of
`
`13
`
`record from one of skill, as you describe, regarding the degree to
`
`14
`
`which the images on the compact and the fish cup are functioning
`
`15
`
`properly from a -- just a naked eye kind of perspective?
`
`16
`
`MR. MCCLEAN: The fish cup, whether that's been
`
`17
`
`someone skilled in the art, that would be -- that would be --
`
`18
`
`Mr. Goggins has said that. I don't know of an independent
`
`19
`
`testimony on that.
`
`20
`
`JUDGE WEATHERLY: Okay, then Mr. Goggins has
`
`21
`
`testified to that effect.
`
`22
`
`MR. MCCLEAN: I don't think it was addressed by
`
`23
`
`expert testimony that's been submitted with respect to the fish cup.
`
`
`
`
`
` 19
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE WARD: So, Mr. McClean, paragraph 23 of
`
`Mr. Goggins' testimony, he states, "Even at this point" -- and I believe
`
`he's referring to the fish cup. "Even at this point, the quality of the
`
`lenticular molding is not perfect," as Judge Giannetti recalled. Does
`
`the Petitioner agree that some level of degradation is allowed by claim
`
`1?
`
`MR. MCCLEAN: I agree that "functionally eliminated"
`
`does not mean absolutely perfect, but I think Mr. Goggins' standard is
`
`going to be a very high standard, because he's the inventor. He views
`
`10
`
`it as not perfect, but finally, it embodies what he was trying to do.
`
`11
`
`The -- the compact case, he didn't feel that way. So, if he's the guy
`
`12
`
`who's skilled in the art, his opinion is available.
`
`13
`
`JUDGE GIANNETTI: But doesn't a reduction to
`
`14
`
`practice necessarily bring in the intended use of the product?
`
`15
`
`Shouldn't the point of view be the intended user rather than the person
`
`16
`
`with the microscope, the expert, or Mr. Goggins testifying that it has
`
`17
`
`to meet a very high standard, near perfection?
`
`18
`
`MR. MCCLEAN: My contention would be that's -- that
`
`19
`
`would be the baseline level, right? Does a consumer -- is it acceptable
`
`20
`
`for a consumer? And we don't have any testimony that it would be.
`
`21
`
`But then I think for purposes of whether or not it's a successful
`
`22
`
`reduction to practice for a patent, we should look beyond what would
`
`23
`
`be the consumer purchase to whether it accomplishes what the patent
`
`24
`
`says it is trying to accomplish.
`
`
`
`
`
` 20
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE GIANNETTI: The patent is directed to
`
`consumer products. It shows the fish cup. So, shouldn't the point of
`
`view be is it acceptable to the consumer? That's the intended user.
`
`MR. MCCLEAN: Of the fish cup, I agree with that. I
`
`think the fish cup would be acceptable to a consumer, and it passes
`
`muster done by those who are skilled in the art. I think we don't have
`
`any information --
`
`JUDGE WEATHERLY: And the argument is that it
`
`would be acceptable to a consumer because it is acceptable to
`
`10
`
`Mr. Goggins?
`
`11
`
`MR. MCCLEAN: Yes. I guess part of it would be
`
`12
`
`Mr. Goggins wouldn't sell the makeup compact; he would sell the cup
`
`13
`
`based on his looking at both, if that is -- if that is a distinction.
`
`14
`
`Now, I would -- I don't want to get away from the topic if
`
`15
`
`the Panel is concerned, but what ultimately -- where we ultimately
`
`16
`
`arrive with this particular technology is neither the makeup case nor
`
`17
`
`the plastic cup makes a difference when we're talking about
`
`18
`
`Mr. Raymond, because all that the Patent Owner has attempted to do
`
`19
`
`is move their date up as far as they can in an attempt to swear behind
`
`20
`
`Mr. Raymond -- Mr. Raymond's work, and that's how they arrive at
`
`21
`
`March.
`
`22
`
`If you accept -- I do not. If you accept at March 28th,
`
`23
`
`they picked up the compact case that they have given you pictures of
`
`24
`
`and I believe they've brought today, if you accept that that is an
`
`
`
`
`
` 21
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`acceptable reduction to practice, then the best they can hope for is that
`
`March 28th, 2000, is the date that they reduced it to practice.
`
`And all we know as far as conception is what we were
`
`given from Mr. Walker -- not Mr. Goggins, Mr. Walker -- that we'd
`
`like to try to mold one of these in December. Between December and
`
`March, we have no information about that inventive -- invention
`
`process. But what we do know, because we had the chance to depose
`
`Mr. Raymond after the Patent Owners submitted their January -- their
`
`January position statement to you all, was what Mr. Raymond's time
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`line was, and we submitted that with our demonstrative exhibits --
`
`11
`
`JUDGE GIANNETTI: Why do we care about
`
`12
`
`Mr. Raymond's time line? I thought this case was about
`
`13
`
`Mr. Goggins's patent.
`
`14
`
`MR. MCCLEAN: Mr. Raymond's patent is issued --
`
`15
`
`well, as you'll see, in December of 2006, but his application for patent
`
`16
`
`was done February 15th, 2000.
`
`17
`
`18
`
`19
`
`JUDGE GIANNETTI: His provisional.
`
`MR. MCCLEAN: His provisional.
`
`And if you work back from his provisional, as you might
`
`20
`
`imagine, he didn't conceive and reduce it to practice on January 14th.
`
`21
`
`22
`
`23
`
`JUDGE WEATHERLY: But that's not relevant.
`
`JUDGE GIANNETTI: Why is that relevant?
`
`MR. MCCLEAN: It is relevant only in that we get to --
`
`24
`
`we get to February with an actual patent -- provisional application --
`
`
`
`
`
` 22
`
`
`
`Case IPR2013-00131
`Patent 6,635,196
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`JUDGE GIANNETTI: Right, at best.
`
`MR. MCCLEAN: At best, fine, but we have -- we have
`
`the history of how he did it, which is -- we don't have for NGI, we do
`
`not have for the Patent Owner. But what we have is a patent filed in
`
`February 2000, and, at best, a reduction to practice in March of 2000
`
`for the Patent Owner.
`
`JUDGE GIANNETTI: Okay.
`
`MR. MCCLEAN: So, our contention, Mr. Raymond's
`
`date is ahead of the reduction- to-practice date -- the conception and
`
`10
`
`reduction-to-practice date of the Patent Owner.
`
`11
`
`12
`
`13
`
`JUDGE GIANNETTI: Mr. Raymond's February date.
`
`MR. MCCLEAN: Mr. Raymond's February date.
`
`JUDGE GIANNETTI: So, why are we interested in what
`
`14
`
`Mr. Raymond did before filing his provisional? It doesn't seem to be
`
`15
`
`relevant to this proceeding.
`
`16
`
`MR. MC