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`ERICSSON INC. and TELEFONAKTIEBOLAGET LM ERICSSON,
`Petitioners,
`
`v.
`
`INTELLECTUAL VENTURES II LLC,
`Patent Owner.
`
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`Case IPR2015-01872
`Patent 7,385,994
`
`
`PETITIONERS’ DEMONSTRATIVE EXHIBITS
`
`
`
`
`
`
`
`
`
`Case IPR2015-01872
`Patent 7,385,994
`
`CERTIFICATE OF SERVICE
`
`Pursuant to 37 C.F.R. §§ 42.6(e), I hereby certify that on December 6, 2016
`
`the following Petitioners’ Demonstrative Exhibits is being served electronically
`
`by agreement of the parties, by e-mail to the following counsel of record.
`
`lgordon-PTAB@skgf.com
`
`bpickard-PTAB@skgf.com
`speters-PTAB@skgf.com
`
`jhietala@intven.com
`tim@intven.com
`
`Lori A Gordon
`Sterne, Kessler, Goldstein & Fox P.L.L.C.
`1100 New York Avenue, N.W.
`Washington, DC 20005
`Phone: (202) 772-8862
`Fax: (202) 371-2540
`Lead Counsel for Patent Owner
`Intellectual Ventures II LLC
`
`Byron Pickard
`Steven Peters
`Sterne, Kessler, Goldstein & Fox P.L.L.C.
`1100 New York Avenue, N.W.
`Washington, DC 20005
`Phone: (202) 772-8521
`Fax: (202) 371-2540
`Back-Up Counsel for Patent Owner
`Intellectual Ventures II LLC
`
`James Hietala
`Tim Seeley
`Intellectual Ventures
`3150 139th Avenue S.E.
`Bellevue, WA 98005
`Phone: (425) 677-2973
`Fax: (425) 467-2350
`Back-up Counsel for Patent Owner
`Intellectual Ventures II LLC
`
`
`2
`
`
`
`
`
`Case IPR2015-01872
`Patent 7,385,994
`
`
`
`
`
`/Charles J. Rogers/
`Charles J. Rogers
`Reg. No. 38,286
`Conley Rose, P.C.
`1001 McKinney St., Suite 1800
`Houston, Texas 77002-6421
`Phone: 713-238-8049
`Fax: 713-238-8008
`e-mail: CRogers@conleyrose.com
`Back-up Counsel for Petitioners
`Ericsson Inc. and
`Telefonaktiebolaget LM Ericsson
`
`
`
`3
`
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`ERICSSON INC. and
`TELEFONAKTIEBOLAGET LM ERICSSON,
`Petitioners,
`
`v.
`
`INTELLECTUAL VENTURES II LLC,
`Patent Owner.
`
`IPR2015-01872
`U.S. Patent No. 7,385,994
`
`Petitioners’ Demonstratives
`
`1
`
`
`
`Instituted Claims/Grounds
`
`References
`
`Basis
`
`Ground 1
`
`Lu
`
`Lu & Pankaj
`
`§ 103(a)
`
`§ 103(a)
`
`Instituted
`Claims
`1-4, 7, 11-14, 17,
`20, 21, 23 & 24
`
`22 & 25
`
`2
`
`
`
`Overview of the ’994 Patent
`• The ’994 Patent generally relates to methods of
`processing queued data packets, described as a
`combination of hierarchical (tier‐based) round‐
`robin and weighted fair queuing, also referred to
`as a “tier‐based weighted fair queuing scheme.”
`
`(Ex. 1001, ‘994 Patent at 4:1‐2).
`
`3
`
`
`
`Claim Construction
`Means‐Plus‐Function Claims
`
`• Board properly construed Claims 11‐19 and
`24 as reciting means‐plus‐function terms
`
`• Patent Owner (“PO”) does not dispute
`constructions for means‐plus‐function terms
`
`4
`
`
`
`Background of the ’994 Patent
`Goal: Provide fair and optimal allocation of limited
`communication resources to data packet users having
`different requirements or throughputs
`
`(Ex. 1001, 2:23‐30.)
`
`5
`
`
`
`Background of the ’994 Patent
`Weighted Fair Queuing
`• Overview: “Weighted fair queuing is a packet queuing/ordering scheme
`based on a bit‐by‐bit round‐robin allocation. The gateway 120 maintains
`separate queues for packets from each user 112, 114, 116. The gateway
`120 processes the queues in a bit‐by‐bit round‐robin manner by knowing
`the throughput of the time‐shared resource/server 130. Under these
`conditions it is clear that if there are N users then the throughput
`provided to each user will be 1/N.” (Ex. 1001, 2:65 – 3:5.)
`Hierarchical Round Robin
`•
`Overview: “A hierarchical round‐robin scheme employs multiple levels
`or tiers. Within each tier a round‐robin service is provided to users using
`a fixed number of slots. A user is allocated a fixed number of slots in
`each tier. The time taken to service all the slots within a level (or tier) is
`termed the frame time. . . . Thus, differential service can be provided to
`users on a level or tier basis.” (Ex. 1001, 3:38‐45.)
`
`6
`
`
`
`Background of the ’994 Patent
`Weighted Fair Queuing (bit‐by‐bit round‐robin)
`• Pro: “provides a fair allocation of bandwidth.” (Ex. 1001, 3:30)
`• Con: “in a system where different users experience very
`different throughputs (e.g. when they experience different radio
`conditions) a weighted fair queuing system faces problems in
`fair allocation to users.” (Ex. 1001, 3:63‐66.)
`
`Hierarchical Round Robin (tier‐based allocation)
`•
`Pro: “differential service can be provided to users on a level or
`tier basis.” (Id. at 3:44‐45.)
`Con: “the hierarchical round robin system does not provide fair
`allocation of bandwidth to users because resources cannot be
`transferred between tiers.’ (Id. at 3:46‐48.)
`
`•
`
`7
`
`
`
`Embodiments of the ’994 Patent
`Proposed Solution: “The packet data queuing algorithm in the
`RNC processor 248 is based around the concept of employing
`different tiers of service. In particular, each tier, of a number of
`tiers of service, is configured to provide users with a commitment
`that a proportion of the entire system bandwidth will be
`allocated to users operating on that particular tier.” (Ex. 1001,
`6:46‐51.)
`
`8
`
`
`
`The ’994 Patent
`“The approach of combining
`hierarchical round robin and
`weighted fair queuing has not be
`considered in the past due to the
`difficulty of determining the
`number of packets which should
`be allocated to each tier when
`there are a variable number of
`users in each tier.” (Ex. 1001, 4:1‐
`5.)
`
`Lu
`“The class queuing system may
`use a weight based scheduling
`scheme to control transfer of data
`packets among queues. The
`weight sets may specify the data
`throughput for a queue during
`each cycle of the weight based
`scheduling so that appropriate
`transfer rates corresponding to
`the desired characteristics of each
`class may be achieved.” (Ex. 1002,
`2:1‐6.)
`
`9
`
`
`
`The ’994 Patent
`“The packet data queuing algorithm
`in the RNC processor 248 is based
`around the concept of employing
`different tiers of service.” Ex. 1001,
`6:46‐48. “In summary, an apparatus
`and method are described to
`provide for a tier‐based weighted
`fair queuing scheme.” Id. at 4:59‐60.
`“Within each tier, packets are then
`allocated in a round‐robin fashion.”
`(Ex. 1001, 7:52‐53.)
`
`Lu
`“This invention provides a [tier‐
`based] class queuing system
`where data is placed in queues
`distinguished by class.” Ex. 1002,
`1:20‐21. “A weight set may be
`assigned to queues at each level.”
`Id. at 3:18. “For a weight based
`scheduling scheme, head data
`packets from each of the initial
`class queues are transferred in
`sequence based on the weight
`set.” (Id. at 6:23‐25.)
`
`10
`
`
`
`The ’994 Patent vs. Lu
`• The ’994 Patent: “In particular, each tier, of a number of tiers of service, is
`configured to provide users with a commitment that a proportion of the
`entire system bandwidth will be allocated to users operating on that
`particular tier.” Ex. 1001, 6:48‐51. “The algorithm is more flexible to changes in
`the overall number of users served changes (each tier is provided with a
`constant share of the overall bandwidth irrespective of the number of users in
`that tier).” (Id. at 8:66 – 9:2.)
`Lu: “For example, in a network environment having high, medium, and low
`classes, each of the classes may be guaranteed a minimum bound relative to
`one or more network characteristics. The network characteristics may be
`qualities such as transmission capacity expressed in terms of bandwidth (bw).”
`Ex. 1002, col. 2:39‐44. “Classes may be distinguished from each other by
`specifying minimum bounds of the above parameters so that data transmission
`for each of the classes may be guaranteed performance above the specified
`minimum bounds.” Ex. 1002, 1:28‐32. “In this way, data from different class
`subscribers may be controlled to partition a bandwidth of the output port to
`support the minimum bounds of the subscriber classes.” (Id. at 3:20‐23.)
`
`•
`
`11
`
`
`
`Summary
`Lu Renders Obvious Claim 1 of the ’994 Patent
`I.
`II. Lu Renders Obvious Claims 11 and 24 of the ’994 Patent
`III. Lu Renders Obvious Claims 7 and 17 of the ’994 Patent
`IV. Lu Renders Obvious Claim 21 of the ’994 Patent
`V. Lu and Pankaj Render Obvious Claims 22 and 25 of the
`’994 Patent
`VI. Petition is not barred by § 315(a)
`VII.Petition is not barred by § 315(b)
`
`12
`
`
`
`Claim 1 of the ’994 Patent
`(pre) A method of processing queued data packets in a packet data
`communication system, the method comprising:
`a) allocating a tier of service for each of a plurality of individual packet
`data queues, wherein allocating a tier of service comprises:
`b) determining a total number of data packets that can use an available
`communication resource;
`c) allocating different weights to each tier of service based on a number of
`users requiring access to the available communication resource;
`d) allocating a proportion of said total number of data packets to a number
`of the tiers of service to allow individual packet data queues on a
`number of tiers to share a communication resource; and
`e) providing said communication resource to queued packet data users
`on a tier‐by‐tier basis, such that said communication resource is made
`available to a number of tiers.
`*PO only disputes obviousness of claim elements b) and e)
`
`13
`
`
`
`Element b) “determining a total number of data packets
`that can use an available communication resource”
`i.
`“determining a total number of data packets”
`• Lu: “A weight based scheduling scheme may operate in
`cycles where for each cycle a number of data packets is
`selected for transfer based on the weights of the weight
`set.” Ex. 1002, 6:31‐33. “[T]he controller 502 may also
`collect subscriber volume data so that the actual number
`of subscribers that are communicating and data packet
`volume for any period of time for each class may be
`determined.” (Ex. 1002, 11:10‐14.)
`
`14
`
`
`
`“determining a total number of data packets”
`• The ’994 Patent: “In the preferred embodiment of
`the
`invention, we assume that allocation of resources by the RNC
`236 can only be made at certain time interval or rounds (also
`possibly referred to as frames), as occurs in known packet data
`systems. . . . Therefore, in each round 100 packets are
`allocated.” Ex. 1001, 6:29‐35. “The total number of data
`packets that can be allocated in a single round, β310, can
`then be determined. (Id. at 7:45-46.)
`• Lu also Determines the Number of Packets per Round: “A
`weight based scheduling scheme may operate in cycles where
`for each cycle a number of data packets is selected for transfer
`based on the weights of the weight set.” (Ex. 1002, 6:31‐33.)
`
`15
`
`
`
`PO’s Expert confirms that Lu
`determines a number of packets
`
`• PO’s Expert: “To determine the number of packets to
`transfer from each class queue in Level 2 to Level 3, Lu
`determines a weight for each class queue.” (Williams Dec.
`¶ 44.)
`• PO’s Expert: “so, for example, in level 2 of Lu, transferring
`packets between the high, medium, and low class queues
`to the output queue, the weights determine the number
`of packets.” (Williams Depo. 76:24 – 77:4.)
`
`16
`
`
`
`PO’s Expert confirms that Lu
`determines a number of packets
`“If the second weight set is: high
`class=5; medium class=2; and low
`class=1, then five data packets from
`the high class final class queue 444 is
`transferred to the destination output
`queue 328 for two data packets of the
`medium class final class queue 442
`and for one data packet of the low
`class final queue 440.” (Ex. 1002, 6:43‐
`48.)
`
`(Williams Dec. ¶ 44.)
`
`•
`
`As annotated by PO’s Expert, Fig. 5 above shows Lu “determining a
`total number of data packets” (i.e., 8) “that packets can use an
`available communication resource.”
`
`17
`
`
`
`Element b) “determining a total number of data packets
`that can use an available communication resource”
`ii. “use an available communication resource”
`• The ’994 Patent: “Assuming that there are L tiers we define the number
`of packets allocated to each tier.” (Ex. 1001, 7:45‐47.)
`• Lu also Defines the Number of Packets for each Tier: “If the second
`weight set is: high class=5; medium class=2; and low class=1, then five
`data packets from the high class final class queue 444 is transferred to
`the destination output queue 328 for two data packets of the medium
`class final class queue 442 and for one data packet of the low class final
`queue 440.” (Ex. 1002, 6:43‐48.)
`• Lu: “Each of the data packets are received by the network 102 and
`placed into queues awaiting available network resources to complete
`the communication.” (Id. at 3:43‐45.)
`
`18
`
`
`
`PO does not present sufficient reasons to alter
`Board’s initial decision regarding element b)
`
`(Institution Decision (“ID”) at 24.)
`
`19
`
`
`
`Element e) “providing said communication resource to queued
`packet data users on a tier‐by‐tier basis, such that said
`communication resource is made available to a number of tiers”
`
`(Petition at 34.)
`
`20
`
`
`
`Patent Owner
`(POR at 24.)
`
`(Williams Depo., 91:12‐19)
`
`21
`
`PO’s Expert
`
`
`
`PO does not present sufficient reasons to
`alter Board’s initial decision regarding element e)
`
`(ID at 25.)
`
`22
`
`
`
`Lu Renders Obvious
`Claims 11 & 24 of the ’994 Patent
`
`• Claims 11 (apparatus) and 24 (system) correspond to
`means‐plus‐function claims.
`
`– Petitioners: “The means‐plus‐function of Claims 11 and
`24 do not include any materially different limitations
`from the corresponding method of Claim 1.”(Pet. at 35.)
`– Patent Owner: does not dispute statement above
`
`23
`
`
`
`Lu Renders Obvious
`Claims 11 & 24 of the ’994 Patent
`
`• Petitioners: “POSA would have understood Lu to disclose
`corresponding or equivalent means and logic for performing
`each function in Claims 11 and 24.” (Pet. at 36‐37.)
`
`(Pet. at 36.)
`
`24
`
`
`
`PO does not present sufficient reasons to alter
`Board’s initial Decision Regarding Claims 11 and 24
`• PO: “Petitioners cite to lists of computer and networking components
`disclosed by Lu without attempting to address which components
`map to which function.” POR at 25. “Petitioners’ failure to specify with
`particularity the means‐plus‐function disclosures of Lu, in addition to
`its failures with respect to claim 1, demonstrate that they have not
`established a reasonable likelihood that Lu renders claims 11 and 24
`obvious.” (Pet. at 24‐25.)
`• Board has Already Considered & Dismissed PO’s Argument: “Patent
`Owner argues that Petitioner fails to specify with particularity where
`Lu teaches the means‐plus‐function limitations of claims 11 and 24.
`Prelim. Resp. 39–40. We disagree. On the current record, we are
`persuaded that the evidence Petitioner cites for claim 1 teaches the
`corresponding elements of claims 11 and 24.” (ID at 26.)
`
`25
`
`
`
`Lu Renders Obvious
`Claims 7 & 17 of the ’994 Patent
`
`26
`
`
`
`Lu (Ex. 1002)
`“When end‐users 104‐108 desire to communicate, each of the end‐users
`104‐108 sends communication signals through the network 102 in the form
`of data packets, for example. Data packets are not required but are
`convenient for discussion purposes. Each of the data packets are received by
`the network 102 and placed into queues awaiting available network
`resources to complete the communication.” (Ex. 1002, 3:39‐46.)
`
`“For a weight based scheduling scheme, head data packets from each of the
`initial class queues are transferred in sequence based on the weight set. A
`head data packet is a data packet that is waiting to be transferred ahead of
`all other data packets in a queue. After the head data packet is transferred,
`the next data packet (in time) in the queue becomes the head data packet
`and so on. In this way, the data packets in a queue is sequentially moved out
`of the queue.” (Ex. 1002, 6:24‐31 (emphasis added).)
`Lu (Ex. 1002)
`
`See supra Claim 7.
`
`Claim 7
`The method of processing
`queued data packets in a
`packet data communication
`system according to claim 1,
`the method further
`comprising: placing a user at a
`tail of an allocated queue,
`depending on the userts [sic]
`tier of service when said user
`provides data packets for
`queuing.
`
`Claim 17
`The packet data scheduler
`according to claim 11, wherein
`said scheduling means is
`operable for placing a user at a
`tail of the allocated queue,
`depending on the user’s tier of
`service in response to the user
`providing data packets for
`queuing.
`
`27
`
`
`
`• PO Argues: “Petitioners…never show that Lu teaches or suggests
`“placing a user at a tail of [an/the] allocated queue.” (POR at 26.)
`• PO’s Expert: The claimed “users” refers to “an indication of who
`the users are, and that indication of who the users are is queued
`along with the data that they want to communicate.” (Williams
`Depo, 91:16‐19.)
`• Lu: When a user desires to communicate, the user’s “data packets
`are received by the network 102 and placed into queues.” (Ex.
`1002, 3:43‐44.) The user’s “data packets in a queue is sequentially
`moved out of the queue.” (Ex. 1002, 6:29‐30.)
`• Petitioners’ Expert: “A POSA would have understood that Lu’s
`system places a subscriber at a tail of a class queue, based on the
`subscriber’s class, in response to the subscriber providing the data
`for queuing.” (Ex. 1006, ¶ 109.)
`
`28
`
`
`
`Rebuttal Against PO’s Arguments
`Petitioners: There is no dispute that Lu places a user’s data packets at the tail of a
`queue when the user provides data packets for queuing, and that Lu “provides a class
`queuing system that processes data transmitted by a subscriber based on a class
`subscribed to by the subscriber.” (Ex. 1002, 2:37‐39.)
`
`(Ex. 1002, 5:57‐67.)
`
`(Williams Depo., 91:12‐19.)
`
`29
`
`
`
`Lu Renders Obvious Claim 21
`
`Claim 21
`The communication unit
`according to claim 20,
`wherein said
`communication unit
`operates as a gateway to
`and/or from two packet
`data networks.
`
`Lu (Ex. 1002)
`“FIG. 1 shows an exemplary diagram of a communications system 100 that includes a
`network 102 and end-users 104-108. The network 102 may be a telecommunication
`network, a data network or any of a variety of intra or internets that facilitates
`communication among end-users. The end-users 104-108 may be a terminal, a
`telephone station (wire or wireless) or other communication systems such as PBXs, for
`example.” (Ex. 1002, 3:31-38 (emphasis added).)
`“The network unit 202 places data packets received from the links 208, 210, 212 and
`214 into input queues so that a switch, for example, within the network unit 202 may
`route each of the data packets to the proper destinations corresponding to the links 209,
`211, 213 and 215. Each of the links 209, 211, 213 and 215 are provided with output
`queues that receive the data packets from the input queues for outputting to the
`respective end-users 104 and 108 and the network units 204 and 206.
`FIG. 4 shows an exemplary block diagram of the queues within the network unit 202.
`The input queues 302-308 receives data packets from the links 208, 210, 212 and 214.
`A switch 310 receives data packets from the input queues 302-308 and routes each of
`the data packets to one of output queues 312-318 corresponding to an appropriate
`destination of the data packet. While FIG. 4 shows the switch 310, there are many
`other known methods for routing the data packets from the input queues 302-308 to the
`output queues 312-318. For example, a bus may couple the input queues and the output
`queues together and a controller may simply read the data packets from the input
`queues 302-308 and write them into the output queues 312-318.” (Ex. 1002, 4:1-22.)
`
`30
`
`
`
`Lu
`“FIG. 1 shows an exemplary diagram of a
`communications system 100 that includes a
`network 102 and end‐users 104‐108. The
`network 102 may be a telecommunication
`network, a data network or any of a variety
`intra or
`internets
`of
`that
`facilitates
`communication among end‐users. The end‐
`users 104‐108 may be a terminal, a
`telephone station (wire or wireless) or
`other communication systems.” (Ex. 1002,
`3:31‐37 (emphasis added).)
`
`Background of the ’994 Patent
`“A cellular communication network generally
`interfaces with a packet‐switched network,
`such as the Internet, via an Internet router
`serving as a gateway to the cellular
`communications
`network.
`Thus, when
`information is to be communicated to or
`from a MS
`or UE
`in
`a
`cellular
`communications network or system,
`the
`route is established to the appropriate
`Internet router, serving as the gateway of
`the cellular communication network.” (Ex.
`1001, 2:8‐15.)
`
`Other
`Communication
`Systems
`
`31
`
`
`
`PO does not present sufficient reasons to
`alter Board’s initial Decision Regarding Claim 21
`
`– Mr. Lanning: “In the context of data packet communications, a POSA
`would have understood Lu’s network unit 202 to act as a gateway to
`and/or from “other communication systems” such as two packet
`data networks, e.g., a packet‐based local area network (LAN), home
`area network (HAN) and/or personal area network (PAN).” (Ex. 1006,
`¶ 135.)
`– PO: Lu’s network unit 202 is described simply as a router, not a
`gateway, and Lu only describes one network. (POR at 29.)
`– Board: “Patent Owner’s argument fails to address Mr. Lanning’s
`testimony adequately.” (ID at 31 (citing Ex. 1006, ¶¶ 134‐135).)
`
`32
`
`
`
`Lu and Pankaj Render Obvious
`Claims 22 & 25 of the ’994 Patent
`
`33
`
`
`
`Lu and Pankaj Render Obvious
`Claim 22 of the ’994 Patent
`Claim 22: “The communication unit of claim 20, wherein
`said communication unit is a radio network controller for
`operation in a third Generation Partnership Project (3GPP)
`specification for wide‐band code‐division multiple access
`(WCDMA) communication system.”
`Pankaj: Teaches a base station controller 810 operating
`“[i]n a wireless communication system employing a Code
`Division‐Multiple Access, CDMA,” which “may be designed
`to support one or more standards such as . . . 3GPP [and]
`referred to herein as the W‐CDMA standard.”(Ex. 1003, ¶7.)
`
`34
`
`
`
`PO does not present sufficient reasons to
`alter Board’s initial Decision Regarding Claim 22
`
`• PO Argues: “Claim 22, which depends from claims 11 and 20, is
`not invalid because the claims from which it depends are not
`invalid. Petitioners did not show that claims 11 and 20 are
`invalid over Lu, and Pankaj does not cure Lu’s deficiencies with
`respect to these claims.” (POR at 33.)
`• Board: “Patent Owner does not present separate argument for
`this ground. Prelim. Resp. 60. On this record, Petitioner has
`established a reasonable likelihood that it would prevail
`in
`showing that claim 22 would have been obvious over Lu and
`Pankaj.” (ID at 39.)
`
`35
`
`
`
`Lu and Pankaj Render Obvious
`Claim 25 of the ’994 Patent
`Claim 25
`Lu (Ex. 1002), Pankaj (Ex. 1003)
`See supra Claims 11 and 24.
`A computer‐
`readable medium
`“An apparatus in a wireless communication
`comprising
`system, comprising: a processing element;
`computer
`and a memory storage element coupled to
`executable
`the processing element, the memory storage
`instructions for
`element adapted for storing computer‐
`performing the
`readable instructions” (Ex. 1003, Claim 18),
`method of claim 1.
`“wherein the computer‐readable instructions
`further implement: scheduling the plurality
`of mobile users.” (Ex. 1003, Claim 20.)
`
`36
`
`
`
`PO does not present sufficient reasons to
`alter Board’s initial Decision Regarding Claim 25
`• PO Argues: “Claim 25 depends on claim 1, which Petitioners failed to show to
`be obvious over Lu. See § IV(B), supra. Pankaj does not cure Lu’s deficiencies
`with respect to claim 1, and therefore Petitioners failed to show by a
`preponderance of the evidence that claim 25 is obvious over the combination
`of Lu and Pankaj.” (POR at 33.)
`• Board has Already Considered and Dismissed PO’s Argument: “As Petitioner
`contends (Pet. 59–6), Lu teaches that its techniques can be implemented as
`computer programs. Ex. 1002, 4:42–44. Petitioner points to Pankaj as teaching
`that similar techniques can be implemented as computer‐readable instructions
`stored in computer memory devices. Pet. 60 (citing Ex. 1003 ¶ 163). According
`to Petitioner, it would have been obvious to use such a memory device in Lu’s
`system. Id. We agree. We have considered Patent Owner’s arguments to the
`contrary and find them to be unpersuasive. On this record, Petitioner has
`established a reasonable likelihood that it would prevail in showing that claim
`25 would have been obvious over Lu and Pankaj. ” (ID at 40.)
`
`37
`
`
`
`The Petition is not Barred by § 315(a)
`• Patent Owner alleges that Petitioners’ Answer in Intervention
`(including an invalidity defense) from their intervention in
`related district court litigation is a “civil action” filed by
`Petitioner challenging the validity of a claim of the ’994
`patent.
`
`• Section 315(a)’s reference to filing a “civil action” refers to the
`filing of a Complaint to commence a civil action, not an Answer
`asserting an affirmative defense of invalidity. See Ariosa
`Diagnostics v. Isis Innovation Ltd, IPR2012‐00022, Paper 20 at 5
`(PTAB Feb. 12, 2013).
`
`38
`
`
`
`The Petition is not Barred by § 315(a)
`
`35 U.S.C. § 315 ‐ Relation to other proceedings or actions
`(a) Infringer’s Civil Action.—
`(1) Inter partes review barred by civil action.—
`An inter partes review may not be instituted if, before the date on
`which the petition for such a review is filed, the petitioner or real
`party in interest filed a civil action challenging the validity of a claim
`of the patent.
`
`* * *
`
`(3) Treatment of counterclaim.—
`A counterclaim challenging the validity of a claim of a patent does
`not constitute a civil action challenging the validity of a claim of a
`patent for purposes of this subsection.
`
`39
`
`
`
`The Petition is not Barred by § 315(a)
`
`• Petitioners’ Answer in Intervention asserting an affirmative
`defense of invalidity is an Answer, not a Complaint to commence
`a “civil action.”
`
`40
`
`
`
`The Petition is not Barred by § 315(b)
`
`• Patent Owner asserts that AT&T was served with a Complaint
`alleging infringement of the ’994 patent and that Petitioners
`are in privity with AT&T.
`
`• Even if a Complaint alleging infringement of the ’994 patent
`was served on AT&T over 1 year before the Petition requesting
`this IPR proceeding was filed, Petitioners are not in privity with
`AT&T.
`
`41
`
`
`
`The Petition is not Barred by § 315(b)
`
`35 U.S.C. § 315 ‐ Relation to other proceedings or actions
`* * *
`(b) Patent Owner’s Action.—
`An inter partes review may not be instituted if the petition requesting
`the proceeding is filed more than 1 year after the date on which the
`petitioner, real party in interest, or privy of the petitioner is served with a
`complaint alleging infringement of the patent. . . ..
`
`42
`
`
`
`The Petition is not Barred by § 315(b)
`• Patent Owner asserts that Petitioners’ intervention in the
`related district court litigation made AT&T a privy of
`Petitioners.
`• Patent Owner does not even acknowledge this Panel’s
`reference to the Caterpillar decision, in which a Board Panel
`concluded that intervention in a district court does not suggest
`that the intervenor is a real party in interest. (ID at 12‐13
`(citing Caterpillar Inc. v. Esco Corp., IPR2015‐00409, Paper 9,
`2015 WL 3826661, at *7 (PTAB June 18, 2015).)
`
`• It was Petitioners’ lack of privity with AT&T that led
`Petitioners’ to seek and be granted intervention in the district
`court litigation.
`
`43
`
`
`
`The Petition is not Barred by § 315(b)
`
`• The issue is not whether Petitioners now will be bound to the
`AT&T case result by virtue of their intervention; rather, the
`proper consideration in a privity analysis is whether, absent
`Petitioners’ intervention, its relationship with AT&T would
`have been such that Petitioners would have been bound by
`the outcome of the AT&T case. (ID at 13.)
`
`• “Patent Owner has not alleged that Petitioners would have
`been bound by the AT&T case result absent intervention.” (ID
`at 14.)
`
`44
`
`
`
`The Petition is not Barred by § 315(b)
`• In further support of its privity argument, Patent Owner
`alleges:
`• customer/supplier relationship;
`• outcome of the AT&T case might affect Petitioners;
`• Petitioners are more knowledgeable about their products
`than AT&T; and
`• AT&T’s alleged infringement is based in part on Petitioners’
`products.
`• “Patent Owner has not alleged other facts, such as facts that
`would suggest control.” (ID at 14.)
`
`• “The facts alleged by Patent Owner . . . are insufficient to
`suggest privity between Petitioner and AT&T.” (ID at 14.)
`
`45