`
`
` Entered: August 14, 2014
`
`
`
`
`Trials@uspto.gov
`Tel: 571-272-7822
`
`
`
`RECORD OF ORAL HEARING
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`GAME SHOW NETWORK, LLC and WORLDWINNER.COM, INC.
`Petitioner
`
`v.
`
`JOHN H. STEPHENSON
`Patent Owner
`____________
`
`Case IPR2013-00289
`Patent 6,174,237
`____________
`
`Oral Hearing Held: July 10, 2014
`____________
`
`Before SALLY C. MEDLEY, KEVIN F. TURNER, and BENJAMIN D. M.
`WOOD, Administrative Patent Judges.
`
`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`
`
`
`
`
`BRENTON R. BABOCK, ESQUIRE
`TED M. CANNON, ESQUIRE
`Knobbe Martens
`2040 Main Street, 14th Floor
`Irvine, California 92614
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`APPEARANCES (Cont.):
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`
`
`
`
`
`THOMAS J. LEACH, ESQ.
`Merchant & Gould
`3200 IDS Center
`80 South Eighth Street
`Minneapolis, Minnesota 55402-2215
`
`
`
`
`
`
`
`
`
`
`The above-entitled matter came on for hearing on Thursday, July 10,
`2014, commencing at 1:00 p.m., at the U.S. Patent and Trademark Office,
`600 Dulany Street, Alexandria, Virginia.
`
`2
`
`
`
`
`
`
`
`Case IPR2013-00289
`Patent 6,174,237
`
`P R O C E E D I N G S
`
`- - - - -
`
`JUDGE WOOD: Good afternoon. This is the hearing for
`
`
`
`
`
`IPR2013-00289 between Petitioners Game Show Network, LLC
`
`and the WorldWinner.com, Incorporated , and Patent Owner John
`
`H. Stephenson.
`
`
`
`The Panel is Judges Medley and Wood in Alexandria,
`
`Virginia, and Judge Turner is appear ing remotely from the U.S.
`
`PTO office in San Jose, California.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`
`
`
`
`Will counsel for Petitioner please introduce themselves?
`
`MR. BABCOCK: Good afternoon , Your Honors. I am
`
`12
`
`Brent Babcock, Knobbe Martens , for Petitioners. Along with me
`
`13
`
`is Ted Cannon.
`
`14
`
`15
`
`
`
`
`
`JUDGE WOOD: Thank you.
`
`Will counsel for the patent owner please identify
`
`16
`
`themselves?
`
`17
`
`
`
`MR. LEACH: Good afternoon, Your Honors. I a m Tom
`
`18
`
`Leach with Merchant & Gould, an d with me is Dan McDonald ,
`
`19
`
`and we're on behalf of the patent owner, John Stephenson.
`
`20
`
`
`
`JUDGE WOOD: Thank you. Per the Board's May 30 order,
`
`21
`
`each party has 30 minu tes of total time to present arguments.
`
`22
`
`The Petitioner will proceed first to present its case with respect
`
`23
`
`to the challenged claims and grounds for which the Board
`
`24
`
`instituted trial. Thereafter, patent owner will respond to
`
`
`
`3
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`Petitioner's presentation. Pet itioner may reserve rebuttal time to
`
`respond to patent owner's presentation.
`
`
`
`
`
`
`
`
`
`Mr. Babcock, you're presenting , I gather?
`
`MR. BABCOCK: Yes, Your Honor .
`
`JUDGE WOOD: Will you be reserving rebuttal time?
`
`MR. BABCOCK: I'd like to reserve five minutes , Your
`
`Honor.
`
`
`
`
`
`
`
`JUDGE WOOD: Five minutes. Okay.
`
`All right then, Mr. Babcock, you may begin.
`
`MR. BABCOCK: Thank you , Your Honors. May I
`
`11
`
`approach and hand out a handout of a copy of the slides?
`
`12
`
`13
`
`14
`
`15
`
`16
`
`
`
`
`
`
`
`
`
`
`
`JUDGE WOOD: Yes, that's fine.
`
`MR. BABCOCK: Thank you.
`
`JUDGE MEDLEY: Thank you.
`
`JUDGE WOOD: All right, thank you.
`
`MR. BABCOCK: And for Judge Turner's benefit, they are
`
`17
`
`identical to the slides that we filed with the Board.
`
`18
`
`
`
`JUDGE TURNER: Thank you. It might be helpful for me
`
`19
`
`when you're actually referring to -- for both parties, if you're
`
`20
`
`referring to a slide, i f you can mention the slide number, and
`
`21
`
`then I can follow along and be -- demonstrative.
`
`22
`
`
`
`MR. BABCOCK: Of course. I'll do my best to do so. We
`
`23
`
`have numbers in the lower left -hand corner, beginning with slide
`
`24
`
`1, which we've labeled GSN1. I may just say slide 1.
`
`
`
`4
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`Good afternoon, Your Honors. Again, Brent Babcock on
`
`
`
`
`
`behalf of the Petitioners. I'd like to begin by walking through a
`
`few of the key issues in this case.
`
`
`
`On slide 2, we enumerate the three issues that are before
`
`Panel. And, interestingly, this case does boil down to three
`
`fairly simple issues. And, in fact, it's simpler than most cases
`
`because claim construction really is the focus of this case. There
`
`aren't really many factual disputes that can be resolved by the
`
`Panel. If the Panel resolves the claim construction issues that
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`the parties have disputed, the case is essentially resolved.
`
`11
`
`
`
`There are three limitations that are at issue that are in
`
`12
`
`dispute with regards to th e proper construction of the claims.
`
`13
`
`The playing a game of skill between a single player and a host
`
`14
`
`computer is the first issue. It seems to be the most highly
`
`15
`
`contested issue and , given the amount of time both parties
`
`16
`
`devoted in the demonstratives to that issue, that seems to be the
`
`17
`
`one we're going to be focusing on the most. The second issue is
`
`18
`
`the claim limitation evaluating results of the qualifying round,
`
`19
`
`and the last limitation is the performance level award increases
`
`20
`
`as a player qualifies for a hi gher performance level. So, those
`
`21
`
`are the three main arguments, main issues , for us to talk about
`
`22
`
`today.
`
`23
`
`
`
`I'm going to turn to slide 2 -- I mean, excuse me, slide 3
`
`24
`
`now and our summary for the -- on behalf of the Petitioner.
`
`25
`
`We're going to be focusing heavily on the proper standard here
`
`
`
`5
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`for claim construction, and as you all recognize, or will
`
`recognize, is it's the broadest reasonable interpretation. Not the
`
`narrowest possible. Not is -- not what maybe the federal circuit
`
`might do in a litigation cas e, but it's the broadest reasonable
`
`interpretation. Of course, the Board has said that's the proper
`
`standard, Congress has said that's the proper standard. It's what
`
`it is today, and it's because the patent owner is permitted to
`
`amend their claims in this proceeding. So broadest reasonable is
`
`the touchstone for the analysis.
`
`10
`
`
`
`The limitation playing a game between a host computer and
`
`11
`
`a player does not require head -to-head competition. It does not
`
`12
`
`require that the computer be an actual player, but simpl y the
`
`13
`
`computer may be an administer or a facilitator of the game.
`
`14
`
`That's the first issue that we're going to be discussing.
`
`15
`
`
`
`Stephenson argues that the computer must be an adversary,
`
`16
`
`must be a head-to-head competitor. The claim doesn't requires
`
`17
`
`that, and we'll tell you why.
`
`18
`
`
`
`The second issue is evaluating results of said qualifying
`
`19
`
`round. The claim construction there is fairly simple. You have
`
`20
`
`to -- after the qualifying round or during the qualifying round, at
`
`21
`
`some point you have to evaluate the resul ts.
`
`22
`
`
`
`Stephenson argues that the evaluation mu st be an absolute
`
`23
`
`evaluation, you must look at a specific number. And, of course,
`
`24
`
`there's nothing in the claim that requires that it be an absolute
`
`25
`
`comparison or evaluation; it can be relative, compa ring different
`
`
`
`6
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`players' results and taking t he top players. And we'll explain
`
`why that's the correct claim construction.
`
`
`
`The last issue is with respect to awarding performance
`
`levels as the players qualify for higher performance levels.
`
`Stephenson argues that that must be done during a game and
`
`can't be done after the game. A nd, again, we'll show you why
`
`that is not the proper claim construction, that certainly you can
`
`award levels after the game is completed.
`
`
`
`
`
`Moving on to slide 4 --
`
`JUDGE MEDLEY: Can I interrupt you and kind of go away
`
`11
`
`from the slide deck here for a minute?
`
`12
`
`13
`
`
`
`
`
`MR. BABCOCK: Of course, Your Honor.
`
`JUDGE MEDLEY: It seems like the parties have a
`
`14
`
`disagreement as to the skill level of one of ordinary skill in the
`
`15
`
`art. It seems like Petitioner says it’s a little bit higher than what
`
`16
`
`-- Petitioner's expert as opposed what patent owner's expert.
`
`17
`
`Would it be appropriate for us in writing the decision to just say ,
`
`18
`
`hey, does it really matter; w e're looking to the prior art record to
`
`19
`
`determine what is the level of skill of one of ordinary skill in the
`
`20
`
`art?
`
`21
`
`
`
`MR. BABCOCK: Yeah, I think that's fine, Your Honor. I
`
`22
`
`didn't perceive a huge difference between the issues -- the
`
`23
`
`definitions that the parties presented. I think they're slightly
`
`24
`
`different because the experts have slightly different views, but I
`
`25
`
`don't think it's a super high level here . We're talking about
`
`
`
`7
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`people with backgrounds in computer science and some
`
`experience in gaming. But I don't think the issues that you're
`
`going to be resolving are going to turn on that , because if we
`
`were talking about what a person of skill in the art might have
`
`found obvious, a factual deter mination, what would a person of
`
`skill to have understood, maybe then what the experts have to
`
`say and what their backgro unds is more appropriate. But here,
`
`we're really going to be focusing on the intrinsic record and I
`
`don't think the Board necessarily needs an expert to be able to
`
`10
`
`say what the intrinsic record says. I mean, the issues that we're
`
`11
`
`going to be presenting a re very clear, plain, on the face of the
`
`12
`
`patent itself, you know, and the prior art.
`
`13
`
`
`
`So, I think your proposal -- back to your question , Your
`
`14
`
`Honor, it's fine just to say either definition is fine given that
`
`15
`
`none of the issues that the Board is going to be resolving, it
`
`16
`
`matters. So either definition, you're going to reach the same
`
`17
`
`result.
`
`18
`
`19
`
`20
`
`
`
`
`
`
`
`JUDGE MEDLEY: Okay. Thank you.
`
`MR. BABCOCK: Sure.
`
`So let's focus on the first issue, what we call issue 1. I'm
`
`21
`
`on slide 4, which is the playing the game req uirement.
`
`22
`
`
`
`The preliminary determination by the Board in its decision
`
`23
`
`to trial was that head -to-head competition was not required.
`
`24
`
`Importantly here, there is no dispute with regards to whether or
`
`25
`
`not Walker discloses the playing the game limitations under the
`
`
`
`8
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`Board's current construction. Under the preliminary
`
`construction, Walker teaches that the computer is a facilitator.
`
`So, if the Board maintains its current construction as it final
`
`construction, that first issue was resolved in Petitioner's favor,
`
`that Walker anticipates that limitation. A nd the parties don't
`
`dispute that, but the question is the Board's initial cons truction
`
`correct or should the construction be narrowed t o be a head-to-
`
`head requirement?
`
`
`
`We're going to, of course, focus first on the intrinsic
`
`10
`
`record, the specification of pat. That's the most important
`
`11
`
`intrinsic tool for the Board to use to evaluate the meaning of the
`
`12
`
`claim term.
`
`13
`
`
`
`JUDGE MEDLEY: Can we just start with the claim
`
`14
`
`language itself --
`
`15
`
`16
`
`
`
`
`
`MR. BABCOCK: Sure. And --
`
`JUDGE MEDLEY: -- before we look at the spec? So the
`
`17
`
`step A says, playing a game of skill in a qualifying round
`
`18
`
`between a single player and the host computer. So playing a
`
`19
`
`game, does that mean both have to be playing? What does that
`
`20
`
`mean?
`
`21
`
`
`
`MR. BABCOCK: Well, they both have to be engaged. A nd
`
`22
`
`I think we have a definition of between -- on slide 9, where we --
`
`23
`
`the word between is by the common action of o r jointly
`
`24
`
`engaging. So there has to be some joint interactivity between a
`
`25
`
`player and a host computer.
`
`
`
`9
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`JUDGE MEDLEY: But what does playing mean? Does that
`
`
`
`
`
`mean both of them have to be playing?
`
`
`
`MR. BABCOCK: Both of them have to be involved ,
`
`interacting in a game of some type. They have to be playing,
`
`working, you know, working together in the play of -- in game
`
`play.
`
`
`
`JUDGE MEDLEY: So if the host computer is just sitting
`
`there administering the game, in your view or your expert's view,
`
`they're playing? The host computer is playing just by --
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`
`
`
`
`
`
`MR. BABCOCK: Oh , yes, most definitely.
`
`JUDGE MEDLEY: -- just by interacting?
`
`MR. BABCOCK: By interacti ng. By providing -- let's say
`
`13
`
`in trivia, by providing questions to the contestant and the
`
`14
`
`contestant responding and the computer s aying correct or not
`
`15
`
`correct, the computer is playing with the player. The c omputer
`
`16
`
`isn't passive. The computer is actively involved --
`
`17
`
`18
`
`
`
`
`
`JUDGE MEDLEY: Right.
`
`MR. BABCOCK: -- providing questions, providing
`
`19
`
`prompts, giving instructions, those kinds of things.
`
`20
`
`
`
`JUDGE MEDLEY: So playing doesn't mean necessarily
`
`21
`
`that it's competing?
`
`22
`
`
`
`MR. BABCOCK: Correct. And the word you said, Your
`
`23
`
`Honor, is correct, not necessarily. It could be competing. And
`
`24
`
`we'll look at the spec , and I wanted to point to slide -- I think
`
`25
`
`slide 6 is -- or slide 5, excuse me, i s probably the key point in
`
`
`
`10
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`the spec where we should look to see what is the broadest
`
`reasonable interpretation.
`
`
`
`And here we have the language Judge Medl ey pointed to,
`
`which is playing a game, playing between a single player through
`
`a terminal and a host computer. And we have two different
`
`alternatives that are explained. In the green, you see the host
`
`computer has the ability to act as a game sponsor, keeping sc ore,
`
`operating, monitoring, distribut ing awards, whatnot. That's the
`
`kind of playing a game wh ere the computer is not a n active head-
`
`10
`
`to-head competitor. And then you see the alternative says, also,
`
`11
`
`the computer can act as another player if the game requires more
`
`12
`
`than a single player. So that's the alternative that the
`
`13
`
`specification provides.
`
`14
`
`
`
`Stephenson wants to focus only on the red to say, oh, that's
`
`15
`
`the definition the Board should adopt. B ut we're saying the
`
`16
`
`Board should adopt the broadest reasonable, which encompasses
`
`17
`
`both.
`
`18
`
`
`
`JUDGE MEDLEY: It seems like to me they're reading that
`
`19
`
`passage as -- the qualifying round is played between a single
`
`20
`
`player through a co mputer and a host terminal. So they seem to
`
`21
`
`be reading that as, okay, starting off, you have -- automatically,
`
`22
`
`the host computer is competing with the single player. And then,
`
`23
`
`in addition, the host compu ter can act as a game sponsor .
`
`24
`
`
`
`MR. BABCOCK: Well, then --
`
`
`
`11
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`JUDGE MEDLEY: And, in addition, the host compu ter can
`
`
`
`
`
`act as a second player. That seems to be, like, the team concept
`
`that you bring out in your reply. That seems to be how they're
`
`reading it.
`
`
`
`MR. BABCOCK: Well, that's -- maybe that's how they're
`
`reading it, but that's certainly not the plain reading -- meaning of
`
`what they're saying here. Because what you're arguing would
`
`leave that last sentence redundant. If the first sentence says,
`
`they're already competing, the computer is already competing as
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`a player, why do you need that last sentence? You don't need it.
`
`11
`
`
`
`JUDGE MEDLEY: Well, it seems like it's referring back to
`
`12
`
`a single player. Single player has alrea dy been mentioned once,
`
`13
`
`and a single player is the human.
`
`14
`
`15
`
`
`
`
`
`MR. BABCOCK: Right.
`
`JUDGE MEDLEY: So if you need another player, more
`
`16
`
`than a single player, the computer will then jump in.
`
`17
`
`
`
`MR. BABCOCK: Well, right, because like, for instance, a
`
`18
`
`game of solitaire, typical solitaire , even Stephenson
`
`19
`
`acknowledges that solitaire traditionally is a single -player game.
`
`20
`
`There is no head-to-head competition in solitaire .
`
`21
`
`
`
`JUDGE MEDLEY: Right. In trivia, you can see that a
`
`22
`
`crossword --
`
`23
`
`
`
`MR. BABCOCK: Trivia. W e had word puzzles, crossword
`
`24
`
`puzzles, are mentioned as part of the games of skill. So all of
`
`25
`
`those games of skill are listed. In fact, we'll look at the
`
`
`
`12
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`dependant claims. The dependant claims of Claim 1 recite those
`
`as the game of skill. They narrow the claim to be solitaire,
`
`crossword puzzles. Thos e are all single-player games. The
`
`computer can't be a head -to-head competitor in those games, at
`
`least that's traditionally understood.
`
`
`
`Stephenson argues, oh, well, there are ways to play
`
`solitaire in a two -- head-to-head competitor way. There's
`
`multiple solitaire; t here's other kinds of games that you could
`
`construct. And that's what their expert says is, you could
`
`10
`
`construct some of these what they call traditional single-player
`
`11
`
`games as two-player games. We don’t dispute you cou ld, but
`
`12
`
`there's no dispute that the spec never discloses those games as
`
`13
`
`multiple solitaire or some special contract; it's just solitaire.
`
`14
`
`
`
`JUDGE MEDLEY: It's broad, so it could cover a sin gle
`
`15
`
`player or a double player.
`
`16
`
`
`
`MR. BABCOCK: Exactly. And again , the Board's job is
`
`17
`
`broadest is reasonable. And when you list a series of single-
`
`18
`
`player games and multi -player games, and you have a sentence
`
`19
`
`here that says that the computer can be a sponsor or it could be a
`
`20
`
`head-to-head competitor, the natural conclusi on, the broadest
`
`21
`
`conclusion is that when you play between a host computer and a
`
`22
`
`person, the broadest reas onable interpretation is the computer
`
`23
`
`can be either, a sponsor, a facilitator, or a player. And there's
`
`24
`
`certainly no requirement here in the claims. They don’t say, you
`
`
`
`13
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`know, head-to-head. They could have said head-to-head, but
`
`they don't say head -to-head; they just simply say play between.
`
`
`
`So if we move on to slide 6, you'll see we -- we mentioned
`
`this earlier -- we have examples of solitaire -- of crossword
`
`puzzles. There's crossword puzzles, that's traditionally a single-
`
`player game; word search.
`
`
`
`And, of course, Stephenson again argues that, oh, you could
`
`create some -- you could fabricate those games in a two-player
`
`way. Well, of course, you could, but the spec doesn’t teach that.
`
`10
`
`And your job isn't to figure what's the narrowest reading of these
`
`11
`
`claims. Your job is to say , what's -- reading the specs broadly as
`
`12
`
`a person of ordinary skill would understand , would you think
`
`13
`
`that the game -- that the computer could be a facilitator ? And
`
`14
`
`again, I focus back on Claim 5, and the answer is clearly, in the
`
`15
`
`green language it said yes. There's no -- it's a very clear express
`
`16
`
`teaching.
`
`17
`
`
`
`I mentioned that on slide 7, we have dependent claims that
`
`18
`
`specifically recite solitaire, cr osswords, and word search. So
`
`19
`
`you have to read Claim 1 in a way t hat's so narrow that Claim 10
`
`20
`
`and 14 wouldn't make sense if you had to argue that somehow the
`
`21
`
`computer had to be a player, because you have to then read
`
`22
`
`Claim 10 as requiring some kind of fabricated solitaire where it's
`
`23
`
`multi-player, and that doesn't make a lot sense.
`
`24
`
`
`
`Could you do it? Could you stretch and reach if you really
`
`25
`
`said, well, could we -- yeah, they have. They stretched and
`
`
`
`14
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`reached, said, well -- again, you could fabricate a way to do this.
`
`But they acknowledge the traditional meaning , and that's pretty
`
`close to ordinary meaning. They say traditional meaning of
`
`solitaire is single player. Traditional meaning of crosswords and
`
`word search, traditional meaning is single player. And
`
`Mr. Freedman (ph.), Stephenson's expert, acknowledges that
`
`there's no disclosure in the spec for these fabricated multi-player
`
`versions of solitaire or word search. T hose are all just made up
`
`by the patent owner.
`
`10
`
`
`
`One of the key issues here is that Stephenson argues that,
`
`11
`
`oh, well, between must be interpreted to mean against, and then
`
`12
`
`somehow against means direct head -to-head competition. First
`
`13
`
`of all, the claim doesn't say against; it says between. Second of
`
`14
`
`all, even the word against, in a broad -- even if the claim did
`
`15
`
`against, a broad reading of against , when you play against the
`
`16
`
`house, you play against the clock. Even against means the
`
`17
`
`computer could be a participant or -- well, I think as
`
`18
`
`Mr. Freedman says, a natural yardstick , times, you know, that.
`
`19
`
`So even if you somehow said, well, between must be against, you
`
`20
`
`still don't get there. You still don't get to a point where against
`
`21
`
`requires head-to-head competition.
`
`22
`
`
`
`Now, we've got a couple of extrinsic piec es of evidence
`
`23
`
`that there's a dispute whether these are admissible, a nd the
`
`24
`
`parties have agreed that because there is a record right now we're
`
`25
`
`going to present this evidence. Now, if the Board strikes the
`
`
`
`15
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`evidence based upon the motion to exclude , then these arguments
`
`obviously won't be considered by the Board. But w e feel that
`
`these arguments are very relevant. They're not dispositive. I
`
`don't expect the Board is going to rely on these in their decision,
`
`but I want the Board to feel comfortable that th e decision to kill
`
`this patent is the right one, i t's the equitable one, and there's two
`
`good reasons why.
`
`
`
`First of all, we all had a conference call where Stephenson
`
`asked for authorization to amend the claims . And I believe,
`
`10
`
`Judge Medley, you even proposed the amendment. You said, do
`
`11
`
`you mean to add in the claim head -to-head, and they said, yeah,
`
`12
`
`that's what they're going to do.
`
`13
`
`
`
`They didn't do that. The deadline passed. They didn't
`
`14
`
`amend their claims. What they did is they filed the ex parte
`
`15
`
`reexam request to put in the amendment. That ultimately -- well,
`
`16
`
`we tried to get it terminated. I think Judge Wood said no, but
`
`17
`
`CRU bounced it, so it's not pending. But regardless of the
`
`18
`
`procedure, when Stephenson made the amendment that we're --
`
`19
`
`this is the amendment that we're focusing on, the meaning of the
`
`20
`
`claim, they knew exactly how to claim head-to-head competition.
`
`21
`
`They said playing includes a single -player and host playing
`
`22
`
`against each other. And even that argument doesn't get us where
`
`23
`
`they want to go, but at least it gets pretty close, a lot closer.
`
`24
`
`And they told the Pat ent Office -- this is recent -- they said to
`
`
`
`16
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`the Patent Office that these new limitations they've added
`
`represent a significant change from the original claims.
`
`
`
`They had the opportunity to present these claims to the
`
`Panel to try to keep this patent alive, to narrow the claims to
`
`exactly what they're saying the claims to be now. They kn ew
`
`how to write those claims and they decided not to. They decided
`
`to try to play a little different game and do an ex-parte process,
`
`hopefully making it easier for them, because they knew even that
`
`claim we'd be able to attack as -- maybe not anticipated by
`
`10
`
`Walker, but certainly obvious, certainly.
`
`11
`
`
`
`JUDGE MEDLEY: So, you're -- the point you're trying to
`
`12
`
`make is that this is an admission. Had it been filed as a motion
`
`13
`
`to amend in this case, i t wouldn't be an admission?
`
`14
`
`15
`
`
`
`
`
`MR. BABCOCK: No, no.
`
`JUDGE MEDLEY: I mean, we see that all the time. H ey,
`
`16
`
`it's a contingent motion; i f you find that my original claims
`
`17
`
`aren't patentable, then you look to my contingent motion to
`
`18
`
`amend. But because, you're saying, that the act of them filing it
`
`19
`
`in the reexamination, that that is somehow an admission?
`
`20
`
`
`
`MR. BABCOCK: Well, yeah, that's exactly what I'm
`
`21
`
`saying, Your Honor, because I think the statement that I put up
`
`22
`
`there is exactly what I'm arguing, which is it is an admission.
`
`23
`
`They're saying to the Patent Office, to a different tribunal, to the
`
`24
`
`CRU, not to the PTAB, but they're saying this limitation they' re
`
`25
`
`adding is a significant change from the original claims, the
`
`
`
`17
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`claims that are before th e Panel. So I think that's a relevant
`
`admission that the fact the claims -- by adding head-to-head,
`
`which they're arguing the claims already have, but they're saying
`
`well, you put it -- make it express, that it's a narrow claim.
`
`
`
`JUDGE MEDLEY: Is their motion to exclude really just
`
`about the weight? It seems like to me -- they're saying it's not
`
`relevant, but it seems to me it kind of goes to the weight we
`
`would give such evidence.
`
`
`
`MR. BABCOCK: Well, that's our response. I mean, that's
`
`10
`
`how we responded. We said, you know, that certainly it's
`
`11
`
`relevant --
`
`12
`
`13
`
`
`
`
`
`JUDGE MEDLEY: It's not really admissibility.
`
`MR. BABCOCK: It's certainly admissible. It's not, you
`
`14
`
`know, it's not hearsay; it's a party admission . Under the Federal
`
`15
`
`Rules of Evidence it comes in, we think . Obviously, the Board
`
`16
`
`will decide that. Or my expectation, having been in a number of
`
`17
`
`these proceedings, is that you'll punt the motion and say it's
`
`18
`
`dismissed as moot because you're not going to rely on it, you're
`
`19
`
`going to rely on intrinsic evidence, which is fine. I think you
`
`20
`
`rely on intrinsic evidence alone to get where we ask you to go.
`
`21
`
`You don't need to go here. And the Board typically has been
`
`22
`
`dismissing all these motions to exclude as moot because you
`
`23
`
`don't need to rely on a lot of this extraneous evidence. And not
`
`24
`
`extraneous because -- it's not irrelevant; it's extrinsic. We
`
`25
`
`acknowledge it's extrinsic. It's not because it's irrelevant .
`
`
`
`18
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`The other piece of extrinsic evidence we think is highly
`
`
`
`
`
`relevant, is the fact that Stephenson on this very patent sued a
`
`competitor, filed a lawsuit against a product called the Golden
`
`Fairway, and all the evidence of record and all the evidence that
`
`we've been able to obtain -- and there's no dispute here -- is that
`
`Golden Fairway did not head -to-head competition, that the
`
`computer was the facilitator in the game. We have a declaration
`
`to that effect.
`
`
`
`Now, the game doesn't currently exist, and why is that?
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`Well, not only did they sue Golden Fairway, but they told the
`
`11
`
`district court they infringed literally and they got a permanent
`
`12
`
`injunction entered through a default judgment. So they benefited
`
`13
`
`from this broad construction. They took a broad construction o f
`
`14
`
`their claims. They said as long as the computer somehow
`
`15
`
`facilities game play in a tournament-type setting, then it's
`
`16
`
`covered.
`
`17
`
`
`
`Now, did the court do a Markman hearing? No. It was a
`
`18
`
`default judgment. But you don't get a default judgment without
`
`19
`
`at least representing to the court that there is literal
`
`20
`
`infringement or infringement of th e claims. And they made that
`
`21
`
`representation to the Court, Stephenson did, a few years ago, to
`
`22
`
`the U.S. District Court in Oklahoma. So they benefited from this
`
`23
`
`broad construction.
`
`24
`
`
`
`They told another federal agency that the claims -- or,
`
`25
`
`rather, did they explicitly say the claim s don't require -- no, they
`
`
`
`19
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`didn't explicitly say that , but it's implicit or inherent in the
`
`arguments they made to the district court that the claims cover a
`
`non-head-to-head type competition. So for them to have
`
`benefited from that broad construction in one setting and now to
`
`tell this separate federal agency, oh, but, wait, wait, wait, we
`
`didn't really mean that; we meant it had to be narrow to try to
`
`preserve the claims , that's not really equitable .
`
`
`
`And these are the statements on slide 12 that they made to
`
`the district court in the lawsuit, in the complaint, a nd then on
`
`10
`
`slide 13 is the declaration from Johnson, who was a reviewer of
`
`11
`
`games. And we located him and he had played a hundred rounds
`
`12
`
`or so of the game and his understanding of the game was that
`
`13
`
`there were no modes in which there was he ad-to-head
`
`14
`
`competition with the computer. They had the opportunity to
`
`15
`
`depose Mr. Johnson ; they declined. So on the record before the
`
`16
`
`Panel, there's no dispute that Golden Fairway was a game in
`
`17
`
`which the only method of playing was the computer acting as
`
`18
`
`facilitator or as a non -active head-to-to competitor.
`
`19
`
`
`
`Now, surprisingly, we've spent the whole t ime on the first
`
`20
`
`issue and I think I'm -- I might have my 25 minutes?
`
`21
`
`
`
`JUDGE WOOD: You still have a little less than 8 minutes ,
`
`22
`
`believe it or not.
`
`23
`
`
`
`MR. BABCOCK: Oh. Yeah, well, let me jump to the
`
`24
`
`second and the third issues.
`
`
`
`20
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`The second issue deals with the evaluating the results.
`
`
`
`
`
`Now, this actually becomes a little bit easier for the Board
`
`because I think, here, the Board could go either way, either say
`
`absolute evaluation is required or relative ev aluation is required
`
`or both. And either way you go, you're going to find that
`
`Walker, the prior art reference, teaches it.
`
`
`
`Now, the claim simply says evaluating the results of the
`
`qualifying rounds. You have multiple players playing these
`
`qualifying rounds, multiple games occurring at maybe the same
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`time, maybe different times. Those are all the qualifying rounds.
`
`11
`
`And then after the games are played in the qualifying rounds,
`
`12
`
`then the computer, the system evaluates the results of the
`
`13
`
`qualifying round. Again, not evaluate the results of the game.
`
`14
`
`You're not evaluatin g the results of a given game. A given game
`
`15
`
`is a person with a computer , either head-to-head or not. But this
`
`16
`
`evaluating the results of the entire qualifying round, which is
`
`17
`
`multiple games with multiple players.
`
`18
`
`
`
`JUDGE MEDLEY: So the qualifying round -- when it says
`
`19
`
`evaluating the results of the qualifying round, your position is
`
`20
`
`that the qualifying round could be lots of single people playing,
`
`21
`
`and then you tally up all of -- you look at all of the people that
`
`22
`
`played in a qualifying ro und?
`
`23
`
`
`
`MR. BABCOCK: Correct. And that's what the patent is
`
`24
`
`talking because you're talking about a tournament. So you have
`
`25
`
`all these qualifying games being played, and then once you get
`
`
`
`21
`
`
`
`Appeal No. IPR2013-00289
`Application No. 09/316840
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`all the qualifying -- it could be one, but it could probably more
`
`than one -- then you look at the players and you figure out who
`
`qualifies to proceed to the next level. And