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` UNITED STATES PATENT AND TRADEMARK OFFICE
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
`________________________
`UNIFIED PATENTS, INC.
` Petitioner,
` v. Case No. IRP2015-00520
` Patent No.: 7,805,749
`PERSONALIZED MEDIA
`COMMUNICATIONS, LLC,
` Patent Owner.
`________________________
`UNIFIED PATENTS, INC.
` Petitioner,
` v. Case No. IRP2015-00521
` Patent No.: 7,801,304
`PERSONALIZED MEDIA
`COMMUNICATIONS, LLC,
` Patent Owner.
`________________________
`(Caption continued on next page.)
` TELEPHONE CONFERENCE
` Monday, May 11, 2015
` 11:00 a.m.
` B E F O R E:
` JUDGE TRENTON A. WARD
` JUDGE KARL D. EASTHOM
` JUDGE GEORGIANNA W. BRADEN
`
`Reported by:
`LYNN VAN DEN HENDE,
`CRR, RMR, CSR-NY, CSR-IL, RPR, CLR
`JOB NO. 93523
`
`TSG Reporting - Worldwide 877-702-9580
`
`Unified Patents Inc. Ex. 1019, pg. 1
`Unified Patents v. Personalized Media
`IPR2015-00521
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` UNITED STATES PATENT AND TRADEMARK OFFICE
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
`________________________
`
`AMAZON.COM, INC. and
`AMAZON WEB SERVICES, LLC,
` Petitioner,
` v. Case No. IRP-201401532
` Patent No.: 7,801,304
`PERSONALIZED MEDIA
`COMMUNICATIONS, LLC,
`
` Patent Owner.
`________________________
`AMAZON.COM, INC. and
`AMAZON WEB SERVICES, LLC,
`
` Petitioner,
`
` v. Case No. IRP-2014-01533
` Patent No.: 7,805,749
`PERSONALIZED MEDIA
`COMMUNICATIONS, LLC,
` Patent Owner.
`________________________
`
`TSG Reporting - Worldwide 877-702-9580
`
`Unified Patents Inc. Ex. 1019, pg. 2
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`A P P E A R A N C E S:
`
`FOR UNIFIED PATENTS, INC.:
` OBLON MCCLELLAND MAIER & NEUSTADT
` 1940 Duke Street
` Alexandria, Virginia 22314
` BY: MICHAEL KIKLIS, ESQ.
`
`FOR AMAZON.COM, INC. and AMAZON WEB SERVICES, LLC:
` KNOBBE MARTENS OLSON & BEAR
` 2040 Main Street
` Irvine, California 92614
` BY: BRENTON BABCOCK, ESQ.
` BY: COLIN HEIDEMAN, ESQ.
`
`///
`
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`A P P E A R A N C E S: (Continued)
`
`FOR PERSONALIZED MEDIA COMMUNICATIONS, LLC:
` GOODWIN PROCTER
` 901 New York Avenue, N.W.
` Washington, D.C. 20001
` BY: STEPHEN SCHREINER, ESQ.
` BY: ELEANOR YOST, ESQ.
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` JUDGE WARD: Good morning.
` This is Judge Ward with the Patent Trial
`and Appeal Board, joined by my colleagues,
`Judge Easthom and Judge Braden.
` This is a conference call for two inter
`partes review matters, IPR2015-00520 and 521,
`Unified Patents versus Personalized Media
`Communications.
` Do we have counsel for Unified on the
`call?
` MR. KIKLIS: Yes, Your Honor, Mike
`Kiklis from Oblon for Unified.
` JUDGE WARD: Good morning, Mr. Kiklis.
` Anyone else joining from Unified?
` MR. KIKLIS: No, sir.
` JUDGE WARD: Thank you.
` Do we have counsel for Amazon on the
`phone?
` MR. BABCOCK: Yes, Your Honor.
` This is Brent Babcock for Amazon.
` Also with me on the phone is Colin
`Heideman.
` JUDGE WARD: Excellent.
` Mr. Babcock, Mr. Heideman, good morning
`
`TSG Reporting - Worldwide 877-702-9580
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`Unified Patents Inc. Ex. 1019, pg. 5
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`to you. Thanks for joining us on relatively
`short notice.
` MR. BABCOCK: No problem.
` JUDGE WARD: Do we have counsel for
`Personalized Media, the patent owner, on the
`phone?
` MR. SCHREINER: Good morning, Your
`Honor. Yes, you have Stephen Schreiner and
`Eleanor Yost.
` JUDGE WARD: Thank you, Mr. Schreiner
`and Ms. Yost.
` We scheduled this phone call to discuss
`Unified Patents' motion to join in these two
`proceedings.
` On December 31, 2014 Unified filed a
`motion to join in the 520 case, seeking to
`join that case, which was previously
`instituted IPR2014-01533.
` And the 521 case, we understand Unified
`is seeking to join to 2014-01532.
` We instituted both of those matters on
`March 31 of this year.
` I've got a couple questions with respect
`to that motion to join for each of the parties
`
`TSG Reporting - Worldwide 877-702-9580
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`Unified Patents Inc. Ex. 1019, pg. 6
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`on the call today.
` I'd like to start with Unified.
` Mr. Kiklis, if you could, give us a
`brief description of why your client decided
`to file these two petitions and the associated
`motion to join.
` MR. KIKLIS: Well, Your Honor, my
`client, as we said in our briefing, is a
`company whose business seeks to reduce NPE
`risk for various technology zones.
` And they considered that these two IPRs
`were consistent with our strategy.
` They considered that these two patents
`were not worthy of maintaining -- being a
`patent, that they were not valid.
` And so they wanted to join these
`proceedings so that in the event that Amazon
`and Personalized Media were to settle, that
`they could continue to resolution of the case.
` So basically, Your Honor, we just want
`to be a fly on the wall.
` And in the event that Amazon were to
`settle, we would then want to pick up the ball
`and run with it.
`
`TSG Reporting - Worldwide 877-702-9580
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`Unified Patents Inc. Ex. 1019, pg. 7
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` That's our whole purpose for being here.
` JUDGE WARD: Okay. Well, a couple
`particular questions for that fly on the wall,
`if I could.
` I'd like to ask you, specifically you
`state in your motion that Unified would agree
`to consolidated filings and discovery.
` What do you mean by consolidated filings
`and discovery?
` MR. KIKLIS: Well, I did have a
`conference with Amazon's counsel.
` And basically they're going to run the
`ball.
` They're going to draft all of the
`consolidated briefing. They're going to
`handle the depositions and run with it.
` So they're in charge.
` JUDGE WARD: Okay. Let me ask you
`specifically then, when you discussed this
`matter with Amazon's counsel, did Unified
`agree for Mr. Babcock to serve as its lead
`counsel on both of these proceedings?
` MR. KIKLIS: Did we agree to -- well, we
`agreed that they would take the take the lead.
`
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`Unified Patents Inc. Ex. 1019, pg. 8
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` If they choose Mr. Babcock to be their
`lead, fine.
` But their counsel will be in charge of
`drafting all briefing, unless there's an issue
`particular to Unified of course, as well as
`taking all depositions.
` So whoever they designate for their
`side, we're just going to -- we're happy with
`that.
` JUDGE WARD: Okay.
` Let me ask you specifically then about
`your proposed relationship with Amazon.
` You state in your motion that Amazon and
`Unified will file all papers as consolidated
`filings except for motions that do not involve
`the other party.
` Mr. Kiklis, what do you envision that
`those motions will include?
` MR. KIKLIS: The only thing that I can
`anticipate at this point, Your Honor, would be
`if -- first of all, as Media raises this real
`party in interest issue, which I think they
`raised in their opposition brief, to the
`extent they raised that, of course we would
`
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`Unified Patents Inc. Ex. 1019, pg. 9
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`want to respond appropriately.
` But that's the only thing that we can
`think of right now that would be any
`additional briefing whatsoever.
` Our goal here, Your Honor, is not to
`cause any complexity to this proceeding
`whatsoever.
` It's merely to serve as a fly on the
`wall.
` You know, we don't anticipate filing
`motions of any kind at this point.
` We just don't see that.
` JUDGE WARD: You also stated that
`Amazon's counsel would question all witnesses.
` Does Unified intend to participate in
`the depositions?
` MR. KIKLIS: We would want to be an
`observer, but that's it.
` So it's up to --
` JUDGE WARD: You would have counsel
`present at the depositions?
` MR. KIKLIS: Potentially, yes, Your
`Honor.
` We would want to be an observer. And
`
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`that's about it.
` We don't feel the need to participate.
`It's going to be up to Amazon. It's their
`show. They're going to run with it.
` They designate who they want to take the
`deposition of. And that's fine with us.
` JUDGE WARD: You also stated that Amazon
`may present argument before Unified at any
`oral argument.
` Does that mean that Unified will seek
`for its own counsel to present at the oral
`argument, if there is one.
` MR. KIKLIS: So, Your Honor, basically
`that's the only point of our brief where we've
`asked for something for us.
` And the only way that we would see that
`arising is if we somehow disagreed.
` But we don't foresee that.
` So, you know, we're content with at the
`oral hearing Amazon just running with it.
` And as we've seen in other cases with
`which we've been involved, if there was a
`point of disagreement, we might ask for an
`opportunity to be heard.
`
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` But at this point we, you know, just
` don't foresee that.
` JUDGE WARD: Thank you for that.
` I understand -- it sounds like there's a
` court on the line.
` Which counsel is it that retained the
` court reporter today?
` MR. SCHREINER: This is Steve Schreiner
` for patent owner PMC. We engaged the court
` reporter, Your Honor.
` JUDGE WARD: Thank you, Mr. Schreiner.
` Appreciate that.
` If you could, Mr. Schreiner, at the
` conclusion of today's conference ensure that
` you file a copy of that transcript in the
` record for both of these cases, the 520 case
` and the 521 case.
` And also for the benefit of the court
` reporter, when you speak, please make sure to
` announce yourself so that she doesn't have to
` interrupt us.
` One additional question, Mr. Kiklis, for
`you with respect to your motion to join.
` You stated that you will be relying upon
`
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`the exact same evidence as in the Amazon IPR.
` Now, will you rely upon Amazon's
`declarants?
` MR. KIKLIS: Absolutely, Your Honor.
` We're not going to introduce our own
` expert. We're not filing any supplemental
` information. Nothing.
` JUDGE WARD: Have you separately
` retained those declarants?
` MR. KIKLIS: We have not.
` JUDGE WARD: And what evidence, in
` addition to that submitted by Amazon, will
` Unified wish to submit?
` MR. KIKLIS: Nothing.
` JUDGE WARD: And when you spoke with
` Amazon about these two cases, what level of
` agreement did you reach with respect to
` Unified's participation, i.e., on what issues
` will you be providing input?
` MR. KIKLIS: Well I represented to
` Amazon's counsel that they'd be running the
` show.
` It would be nice if we had an
` opportunity to consult with them. But it's
`
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`their show to run.
` So that's what I represented to them.
`And I'm happy to represent that to the board.
` We don't want to get in their way.
` Again, we just want to be able to -- in
`the event that this case settled, we would
`want to be able to pick up the ball and run
`with it.
` So we don't want to slow down Amazon in
`any way.
` If there's an opportunity for them to
`show us a draft of a brief ahead of time, that
`would be great.
` We're not requiring that in any way.
` We're just trying to be as nonintrusive
`as possible, Your Honor.
` And if I may just go back to the whole
`point that you raised about the oral argument,
`if it was a deciding factor for this board or
`important that we not have any time at the
`oral hearing, we're fine with that. We're
`fine with that.
` And we've seen some orders from the
`board come down recently in cases where a
`
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`petitioner wishing to join literally plays the
`kind of role which I'm talking about, where
`they're observers at depositions, they're not
`involved -- they don't take the lead on
`consolidity of briefing, and they're not
`afforded any time at the oral hearing.
` So, you know, if that's important to
`this board, we're comfortable with that as
`well.
` JUDGE WARD: Do you have any citations
`for us with respect to those cases?
` Are they cited in your motion to join or
`are they more recent?
` MR. KIKLIS: They're more recent.
` I'm lead counsel on a bunch of the
`Westerngeco -- PGS versus Westerngeco cases.
`And Ion was just granted joinder in those
`cases.
` I think I can give the board a cite if
`you just give me a second.
` (Pause in the record.)
` MR. KIKLIS: I've got IPR2015-565, 566,
`and 567.
` And I believe the order in those cases
`
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`is pretty much what I've described here.
` I'm going from recollection of course.
`So please forgive me as if it is a little bit
`different.
` JUDGE WARD: Okay. Thank you,
`Mr. Kiklis.
` We'll move now to Mr. Babcock.
` Mr. Babcock, does your client support
`the Unified motion to join?
` MR. BABCOCK: Good morning, Your Honor.
`And this is Brent Babcock. We do not oppose.
` Mr. Kiklis's representations that he
`just made to the board are consistent with
`what he told me some time ago.
` And as he's represented to us and to the
`board just now, his "fly on the wall" approach
`is not objectionable to us.
` We don't -- I don't know if the
`distinction between supporting and not
`opposing is significant.
` But my client's position is we don't
`oppose.
` JUDGE WARD: So you do not support the
`motion, but you do not oppose the motion?
`
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` MR. BABCOCK: Those are my instructions,
`that's correct.
` We don't necessarily join or want to be
`involved in the motion or advocating for it.
` Mr. Kiklis is capable and competent to
`do that.
` But we simply will stand by and say
`we're not going to oppose or in any way object
`to it.
` JUDGE WARD: So, Mr. Babcock, if we were
`to grant Unified's motion, is it your
`understanding at this point that you would be
`serving as lead counsel for Unified?
` MR. BABCOCK: That's my understanding,
`yes, Your Honor.
` JUDGE WARD: And do you agree to the
`terms of consolidation laid out in Unified's
`motion to join?
` MR. BABCOCK: Yes.
` JUDGE WARD: So those terms in which you
`will be filing all matters on behalf of both
`parties?
` MR. BABCOCK: Yes, as supplemented by
`his representations to the board on the record
`
`TSG Reporting - Worldwide 877-702-9580
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`Unified Patents Inc. Ex. 1019, pg. 17
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`today, which are consistent with what he told
`me.
` I think the details of him wanting to
`preview documents, those kinds of things, were
`discussed.
` And we're not inclined necessarily to
`slow down or provide drafts early or give up
`time at depositions, those kinds of things.
` But to the extent he wants to simply
`look at what we've done, that's fine.
` JUDGE WARD: And what have you indicated
`to Mr. Kiklis with respect to his ability to
`provide input, i.e., to what extent will you
`accept his suggestions or comments?
` MR. BABCOCK: Our discretion 100
`percent.
` But to the extent we have a draft that
`we can float by him prior to filing, we will
`float by a draft.
` And if he has comments, we'll consider
`those.
` But certainly it's our -- we're driving
`the boat. And if we accept his comments,
`great. If we don't, that's fine as well.
`
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`Unified Patents Inc. Ex. 1019, pg. 18
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` JUDGE WARD: Okay.
` MR. KIKLIS: Your Honor, if I just may,
`this is Mike Kiklis for Unified.
` And that's totally fine with us.
` That was our understanding.
` JUDGE WARD: Thank you, Mr. Kiklis and
`Mr. Babcock.
` Let me move on to the patent owner,
`Mr. Schreiner.
` With respect to your preliminary
`responses, I'm going to ask about the
`preliminary responses you filed in each of
`these matters, the 520 case and the 521 case.
` Can you identify for us the differences
`in those preliminary responses with respect to
`the preliminary responses you filed in the two
`related matters, 1532 and 1533?
` MR. SCHREINER: Yes, Your Honor.
` The main difference -- and it's a
`significant one -- is the issue of real party
`in interest.
` JUDGE WARD: Right.
` And I've taken a look at your remember
`preliminary response.
`
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`Unified Patents Inc. Ex. 1019, pg. 19
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` And in that preliminary response you
`indicated that in accordance with our February
`18 order that PMC will address real party in
`interest issues in a separate paper.
` Is that correct?
` MR. SCHREINER: Yes, Your Honor.
` Our recollection from the call we had
`previously on the motion for joinder is that
`we raised this issue of real party in
`interest.
` And the board indicated that it would
`consider the possibility of a separate paper
`being filed by PMC, perhaps after some
`supplemental discovery.
` And the issue is particularly pressing
`in this case because we do have known facts
`that give rise to the real party in interest
`issue for PMC.
` And one of them alluded to in our
`opposition papers is that one of Unified's
`members is a company with whom PMC has been
`engaging in licensing discussions for four to
`five years now.
` And we believe there very well may be
`
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`Unified Patents Inc. Ex. 1019, pg. 20
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`other members of Unified's membership that are
`parties that PMC has had licensing discussions
`with.
` Of course the fact that Unified
`concealed its membership makes it impossible
`to say as to the latter at this point.
` JUDGE WARD: Mr. Schreiner, let me just
`interrupt you there quickly.
` You stated that there is a Unified
`member in which your client, PMC, has been
`engaged in discussions for four to five years
`with respect to licensing, that's correct?
` MR. SCHREINER: Yes, sir.
` JUDGE WARD: And that is a license with
`respect to the two patents at issue in these
`proceedings, the '304 patent?
` MR. SCHREINER: The licensing
`discussions would include these two patents,
`yes, Your Honor.
` JUDGE WARD: And can you identify that
`entity for us?
` MR. SCHREINER: Let me consult, because,
`as you might anticipate, there was an NDA put
`in place.
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` The NDA was put in place after some
`initial communication.
` If you would just give me a moment to
`consult with my colleagues here.
` JUDGE WARD: Sure. Take your time.
` MR. SCHREINER: Thank you.
` MR. KIKLIS: Your Honor, this is Mike
`Kiklis for Unified.
` Our membership list is highly
`confidential information. That is information
`that we fought very hard to protect.
` I don't know how he would have found
`this information out, but we would of course
`like to protect that from coming out.
` So if there's some way that, if the
`board really needs to know this information,
`that we can mark in as highly confidential,
`outside counsels' eyes only.
` JUDGE WARD: Before anyone else
`comments, then in view of the sensitivity of
`the matter, I think this would be better
`addressed in briefing.
` Mr. Schreiner, you don't need to respond
`then to my question.
`
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` And to the extent that this issue is
`pertinent, we can address it in briefing.
` And that's my next question for you,
`Mr. Schreiner.
` As you noted, our February 18 order in
`these cases stated if the panel decides to
`join and institute trial in each case, the
`panel may permit additional briefing regarding
`any under drafts real party in interest
`issues.
` Due to the fact that it doesn't appear
`that you addressed those issues with substance
`in your preliminary response, do you have a
`proposal for this panel with respect to a
`possible briefing schedule should we grant the
`motion to join in these two cases?
` MR. SCHREINER: Yes, Your Honor.
` We would ask for supplemental discovery
`under a party in interest issue.
` As I noted, there's already one party
`that we know is a member of Unified with whom
`PMC has had extensive licensing negotiations.
` So we would ask about supplemental
`discovery.
`
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`Unified Patents Inc. Ex. 1019, pg. 23
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` I think it could take place within a
`month. And then the July timeframe we would
`be in a position to submit the supplemental
`briefing.
` At present we're shouldering a pretty
`heavy burden of taking seven days of
`deposition between now and June 5 and filing
`seven patent owner responses June 29, which
`will be nine responses if Your Honor decides
`to grant the joinder.
` JUDGE WARD: I'm sorry, if you could,
`restate the -- you said June 29?
` MR. SCHREINER: Yes, Your Honor.
` Amazon filed seven IPRs, IPR petitions.
` Those were granted.
` The responses are due June 29, pursuant
`to a stipulated modification to the original
`scheduling order, which we are awaiting a
`decision from the board on.
` So those seven are due -- assuming the
`stipulated amendment to the schedule is
`granted, those are due June 29 -- and that's
`seven -- to be preceded by seven days of
`deposition for four experts.
`
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` And, as I noted, if Your Honor grants
`Unified's motion to join, then we'll have nine
`patent owner responses due at the end of June,
`ergo my proposal that any supplemental
`briefing are real parties in this interest be
`set forth sometime late in July.
` JUDGE WARD: Thank you, Mr. Schreiner.
` I'm taking a look at your stipulation
`filed on April 16.
` So it appears that you have -- at the
`current time due date one is set for June 29.
` And you're representing that that is the
`case for all of Amazon's IPR petitions against
`your client, correct?
` MR. SCHREINER: Yes.
` Your Honor, originally when the board
`granted the IPR petitions for Amazon, a
`schedule was issued that provided only two
`months' time for patent owner's response.
` We had a call with the board on that.
` We asked for additional time, something
`along the lines of the normal three months
`granted.
` And at that time Judge Easthom indicated
`
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`Unified Patents Inc. Ex. 1019, pg. 25
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`that he would move the trial date out to
`December 8, and that the order to the parties,
`that being Amazon and PMC, work together to
`stipulate to an amendment of the other days.
` And we did that, Amazon and PMC.
` And we submitted a motion for an amended
`schedule about a month back.
` But we have not heard anything granting
`it yet.
` JUDGE WARD: Okay. And your proposal
`would then be that you would need time -- you
`would seek supplemental discovery and that you
`would need time to take depositions in
`relation to that supplemental discovery,
`presumably in June, and then you would be in a
`position to file supplemental briefing in
`July?
` MR. SCHREINER: Yeah, towards the end of
`July, because, again, you know we're going to
`be taking so many depositions already of
`Amazon's experts in June.
` JUDGE WARD: Okay. Thank you for that,
`Mr. Schreiner.
` That's all the questions that I have.
`
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` And let me go backwards in order.
` Any additional issues that you'd like to
`raise to the panel today, Mr. Schreiner?
` MR. SCHREINER: Your Honor, let me have
`just confer with Ms. Yost, please.
` (Pause in the record.)
` MR. SCHREINER: Yes, I should add, Your
`Honor, of course despite the proposal that
`we've floated, we of course oppose the motion
`for joinder for all the reasons set forth in
`our opposition, which is that it really will
`prejudice PMC and complicate this case with a
`real substantive new issue.
` I'll add as one that Director Lee is
`recognized with the proposed rule that she's
`discussed.
` JUDGE WARD: Thanks, Mr. Schreiner.
` Mr. Babcock, any additional issues you'd
`like to raise with the panel today?
` MR. BABCOCK: No, Your Honor.
` With regards to the schedule that
`Mr. Schreiner pointed out, I'm not sure the
`board was contemplating actually issuing an
`order.
`
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` I think we resolved the date 6/07 on the
`phone. And then the parties stipulated the
`remainder dates.
` So we're proceeding as that schedule has
`been approved.
` But I think it's the same panel. So to
`the extent that there needs to be an order, I
`guess that would be fine.
` But we're assuming that no order is
`forthcoming because no order is necessary.
` But other than that, we don't have any
`issues to raise.
` JUDGE WARD: Thank you, Mr. Babcock.
` Yes, the panel agrees that there is no
`further action required.
` We've accepted that order as stipulated
`in the 1533 cases, paper number 15, notice of
`stipulation to change the dates.
` So that will be the schedule going
`forward for those cases.
` Finally, Mr. Kiklis, any additional
`issues you'd like to raise to the panel today?
` MR. KIKLIS: Well, Your Honor, I would
`just like to respond to what Personalized
`
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`Media stated regarding real party in interest.
` I would just like to say, as we said in
`our briefing, Your Honor, that issue is just a
`red herring.
` It's just being raised in an attempt to
`try to oppose our joinder opposition.
` But we have submitted with our petition
`sworn-under-oath interrogatory answers from
`the CEO of Unified itself where he says, under
`oath, that all decisions are based -- that
`Unified makes all of its decisions
`independently, that no member can control or
`even has an opportunity to control.
` So there's simply no there there.
` Also, in the Dragon case there was
`copious discovery, depositions, briefing,
`document production. It was really kind of a
`scorched earth situation.
` And this very board ruled that Unified
`Patents is indeed the real party in interest.
` So what you hear from Personalized Media
`is a lot of smoke and mirrors, but ultimately
`there's simply no there there.
` Unified Patents has filed a bunch of
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