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`IPR2016-00174, Paper No. 25
`February 27, 2017
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
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`UNIFIED PATENTS INC,
`Petitioner,
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`v.
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`NONEND INVENTIONS N.V.,
`Patent Owner.
`____________
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`Case IPR2016-00174
`Patent 8,090,862 B2
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`Held: February 8, 2017
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`BEFORE: MICHAEL W. KIM, JENNIFER S. BISK, and
`DANIEL N. FISHMAN, Administrative Patent Judges.
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`The above-entitled matter came on for hearing on Wednesday,
`February 8, 2017, commencing at 1:00 p.m., at the U.S. Patent
`and Trademark Office, 600 Dulany Street, Alexandria, Virginia.
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`Case IPR2016-00174
`Patent 8,090,862 B2
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`APPEARANCES:
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`ON BEHALF OF THE PETITIONER:
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`DAVID L. CAVANAUGH, ESQUIRE
`MICHAEL VAN HANDEL, ESQUIRE
`Wilmer Cutler Pickering Hale and Dorr LLP
`1875 Pennsylvania Avenue, N.W.
`Washington, D.C.
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`--and—
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`JONATHAN STROUD
`Chief Patent Counsel
`Unified Patents
`1875 Connecticut Avenue, N.W.
`Floor 10
`Washington, D.C. 20009
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`MATTHEW ANTONELLI, ESQUIRE
`Antonelli, Harrington & Thompson LLP
`4306 Yoakum Boulevard
`Suite 450
`Houston, Texas 77006
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`ON BEHALF OF PATENT OWNER:
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`Case IPR2016-00174
`Patent 8,090,862 B2
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`
`P R O C E E D I N G S
`- - - - -
`JUDGE BISK: Good afternoon. This is a hearing for
`IPR 2016-00174 involving Patent 8,090,862, Unified Patents as
`the Petitioner and I'm not sure if I'm saying this right, but Nonend
`Inventions is the Patent Owner.
`As you know, we gave 60 minutes to each side for this
`case. And since there is no motion to amend, Petitioner, you will
`be the last to speak. So just let me know when you stand up how
`much time you want to save.
`And if you're going to -- I think we only received one
`set of slides. Is that correct?
`MR. ANTONELLI: That is correct. Matt Antonelli for
`Nonend. We did not present any slides.
`JUDGE BISK: Okay. I just want to make sure we're
`[not] missing something. So when you're talking, if you could
`specify the slide you're on because Judge Fishman can't see the
`screen. Okay?
`MR. CAVANAUGH: Yes, Your Honor.
`JUDGE BISK: Oh, can we get a roll call for the
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`record?
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`MR. CAVANAUGH: Dave Cavanaugh for the
`Petitioner. With me is Jonathan Stroud from Unified Patents and
`also Mike Van Handel from Wilmer Hale, also with Unified
`Patents.
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`Case IPR2016-00174
`Patent 8,090,862 B2
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`JUDGE BISK: Okay. And the Patent Owner?
`MR. ANTONELLI: Matt Antonelli. I represent
`Nonend.
`JUDGE BISK: Okay. Thank you. All right.
`Whenever you're ready.
`MR. CAVANAUGH: Thank you, Your Honor.
`May it please the Board, I'm Dave Cavanaugh. As I
`mentioned a moment ago, the Petitioner is Unified Patents and
`this inter partes review is centered around an issue of streaming
`video data and we'll be talking about a variety of attributes of
`that. The Board in the Decision on Institution granted three
`different grounds. We'll talk about each of those grounds and
`address the particular issues raised by the Patent Owner.
`Before that so that everyone is on the same page, we'll
`provide a brief description of the '862 patent and then provide an
`overview of the prior art. I'd like to reserve just for the record 10
`minutes of rebuttal time and my colleague and I will split the
`argument for the first part and up until the description of the first
`ground I will be presenting and then Jonathan Stroud will be
`presenting for the second and third grounds and we'll make that
`transition as smooth as possible.
`JUDGE BISK: Okay. Thank you.
`MR. CAVANAUGH: So the '862 patent, as I
`mentioned, relates to a way of streaming data. I think what we've
`presented on slide 3 here is kind of a representative illustration,
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`Patent 8,090,862 B2
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`Figure 13 of the '862 patent and, you know, essentially the center
`circle is a consumer node that is going to -- getting ready or in
`this case receiving media stream and information from another
`node, a first node, getting the information stored in the buffer and
`then out in the green lines, which I've added just for clarity, the
`green line going down to the consumer manager, which is in the
`center of the consumer node circle out to the stream target, which
`is on the lower right-hand side of the illustration.
`And so the consumer node just as a circle is both
`receiving and buffers the information from the first node and then
`passes that information to the stream target.
`You know, so following Figure 13, Figure 14 describes
`a circumstance, and this is illustrated on slide 4, where a second
`node is included that is -- and that's shown on the left-hand side
`of Figure 14, on the top left-hand side, and that is kind of an
`indication that the consumer node is seeking or requesting for the
`media potentially to come from node B. Perhaps it's a slow
`connection. Perhaps the data connection is not as robust from
`node A and the consumer node is seeking another node to gain
`the data. And that's what's represented here.
`And then once there is a switch-off, let's say node B is
`-- and this is on slide 5. Node B is demonstrated to be a better
`quality node to provide the content. The node will switch and
`information will proceed from node -- from node B to the
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`Patent 8,090,862 B2
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`consumer node and then down toward the streaming target and
`then eventually the connection of node A would be disconnected.
`And what's represented here, just for clarity of the
`record, is that node switching, and this is kind of that
`circumstance where there is another node that kind of is feeding
`the consumer node, which is in the center.
`As I mentioned a moment ago, and this is on slide 6,
`just to kind of illustrate what kind of transition is going on and
`what's described in the '862 patent, when there is a -- what we're
`seeing here in slide 6 is two illustrations from Figure 6, 6D and
`6E specifically and, you know, it is part of a -- kind of a range of
`illustrations that describe how the data is transferred in a way that
`is kind of efficient throughout and kind of speed efficient
`throughout the whole system.
`And so what's illustrated in Figure 6D there is a series
`of data here. It's a series of digits 1 through 8 that is kind of
`getting throughout the system and, you know, there are various
`nodes which are kind of receiving information at various rates,
`which is represented as the specification describes, kind of going
`into the overall nodes.
`And ultimately here in this example 126, which is
`illustrated in red, you know, is going to receive and the green line
`indicates that it's receiving information from like 122, the node
`122, but recognizes as illustrated in 6E that there is a quicker
`connection and switches from a connection to 122 to the node
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`Patent 8,090,862 B2
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`129. And so, you know, that's essentially kind of the switch or
`the handoff or the changing servers that's being described.
`And I think that just to kind of pause for a moment on
`another attribute of the '862 patent, you know, there is kind of a
`series of information. The consumer node can recognize that
`there may be another kind of data source that is kind of perhaps
`either at a faster speed or an equivalent speed and, you know,
`they can receive two pieces of information so that there's an
`overall piece of -- overall kind of -- kind of suitable data
`exchange rate provided. In the specification it provides like 28k.
`28k gets boosted up to 56k.
`So here the -- here's the representative claim of the '862
`patent. And what we see on slide 8 is Claim 1 and there's really
`-- it's a method for receiving data and it comprises four steps.
`The first three steps, the receiving, initiating a request, and the
`receiving in response to initiating the request is largely
`unchallenged by the Patent Owner.
`And the focus of the Patent Owner's kind of challenge
`in their Response is in this fourth limitation, which is kind of
`circled in red or kind of identified in red and highlighted or
`presented on the right-hand side of the screen, and I think it bears
`some moment to pause on the limitation itself because the
`limitation provides for making incoming content received over
`the first communication channel ready for processing and
`playback at the receiving media player, such that the item of
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`Patent 8,090,862 B2
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`content is streamed to a streamed target at the receiving media
`player, while another part of the item of content is being received
`by the receiving media player over the second communication
`channel.
`So it seems to provide for both, you know, the content
`is streamed to a steam target while another part of the item is
`received by the receiving media player and those are happening,
`at least as this method is describing, at the same time.
`So the Decision on Institution -- and I'll pause for any
`questions that the Board has at any time. But the Decision on
`Institution identified three different grounds of unpatentability.
`There was an anticipation by Shastri for nearly all the claims
`except for Claim 7, but all the claims that we identified in the
`grounds were granted by the Board.
`And then there are two other grounds over obviousness,
`Goldszdmit alone and also Goldszdmit in view of Lumelsky, and
`we'll describe kind of that obviousness in a few moments.
`You know, we thought it might be useful to just talk
`about the prior art at a high level before we go into the arguments
`that the Patent Owner presented, just so that everybody is on kind
`of the same wavelength with regard to the individual aspects or
`attributes of the prior art.
`This is Shastri which is the first ground of
`unpatentability and what we've illustrated and here's slide 10 is
`Figure 1 of Shastri and there are streaming servers, which are
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`Patent 8,090,862 B2
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`highlighted in yellow on the top of the illustration, and there are
`media players, which are kind of identified in red with the P
`underlined, and there's a dynamic server selection module, which
`we'll talk about in a moment, inside the media player and that is
`basically the system that Shastri is describing for this
`uninterrupted playback of content.
`So this is a little bit more information on slide 11 about
`Figures 2 and 4 of Shastri, and, you know, what I think is
`important from Figure 2 is that the player as it's described in
`Shastri includes a number of different components. There is a
`parser, a buffer and the display module. There's the DSS, which I
`mentioned a moment ago, and all of that is a part of the player
`which is indicated by the -- kind of the dotted line on the figure,
`which I've highlighted as a red line in the illustration.
`And the DSS is what is determining whether or not to
`switch one server to another server. So that's an important part of
`the switching process and that's represented on the right-hand side
`of slide 11 and that is -- and there is kind of that question whether
`or not that server, the alternative server is better than the current
`server. If yes, then switch. And if no, then continue on in the
`earlier one.
`A couple points of Shastri, you know, their -- and this is
`what the Board mapped in the Decision on Institution that there is
`a sampling dynamic that goes on to kind of provide quality of
`service or quality of signal information that Shastri uses to
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`determine whether or not it wants to make the switch, and that's
`represented here on slide 12. I've highlighted from paragraph 48
`of Shastri and then that media content I just want to make sure it's
`clear we recognize that it's not a sample or rendered, but that that
`sample is, indeed, brought into the media player as I think we'll
`talk about in a moment.
`You know, and the Patent Owner, as we understand
`their arguments, has made some indication that the Shastri
`reference doesn't teach uninterrupted playback and what we've
`highlighted here on slide 13 is that there is a switching that is
`"transparent" to the user, that it is a dynamic selection and that it
`is without interruption.
`So, you know, in the Petitioner's view along with our
`expert, we believe that that fairly discloses in a fairly concrete
`way that it is a service without interruption.
`JUDGE BISK: I have question about that.
`MR. CAVANAUGH: Sure.
`JUDGE BISK: I'm looking at the claim language of
`what Patent Owner calls a simultaneous limitation, which is the
`last one that you've been talking about.
`MR. CAVANAUGH: Yes.
`JUDGE BISK: To me I'm not sure if I'm missing
`something, but it seems like it's saying simultaneously receives.
`So it's making ready on the first part from the first
`communication channel and the other one it is being received. I
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`don't see anywhere that the claim includes simultaneous or
`uninterrupted playback.
`MR. CAVANAUGH: I would agree with that, Your
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`Honor.
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`JUDGE BISK: Okay.
`MR. CAVANAUGH: My point on Shastri is that the
`Patent Owner in the Petitioner's view is arguing a limitation that's
`not a part of the claim.
`JUDGE BISK: Okay.
`MR. CAVANAUGH: You're still right, Your Honor.
`JUDGE BISK: I thought it sounded a little bit to me
`like you thought there also needed to be a simultaneous --
`MR. CAVANAUGH: No. I guess what I was trying to
`do is be true to the reference as what it says and so not
`necessarily kind of aligning that with the claim limitation.
`JUDGE BISK: Okay. Thank you.
`MR. CAVANAUGH: And we'll talk about Goldszdmit
`in a few moments. What I'll do is go forward to the issues raised
`by the Patent Owner and there are kind of three kind of broad
`issues that we want to raise. One, the claim construction that the
`Patent Owner put in their Patent Owner Response and there are
`two of those.
`The Patent Owner alleges an earlier priority -- an earlier
`filing date based on kind of -- based on an alleged conception. I
`will address that and in the Petitioner's view the evidence is
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`Patent 8,090,862 B2
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`insufficient to antedate Shastri as the reference that they're trying
`to antedate. And then we'd like to talk about the individual
`references and kind of discuss how the Patent Owner either is
`trying to add limitations to the claim or oriented toward things
`that are not part of -- not a part of the claim.
`So in the two -- one of the first of the two limitations
`that the Patent Owner wants to construe in the Patent Owner's
`Response relates to the term streamed and this is a term that the
`Board construed in the Decision on Institution and so this is
`represented on slide 21 now, and the Board's Decision on
`Institution is represented in the second bullet point.
`The Patent Owner would like an alternative
`construction, you know, where we don't think that that is the
`proper construction. It's not really grounded in either a definition
`or the specification and it's not entirely clear to us what the Patent
`Owner's construction accomplishes, but it is clear to us that it is
`different in some respects than the Board's construction and we've
`applied the Board's construction as we've looked at the
`Petitioner's Reply.
`So that's I think key and I think the other key of
`streamed is regardless if you choose our construction or if you
`choose the Patent Owner's construction, it's the Petitioner's
`position that really the claims are invalid either way.
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`So if there are no questions on the streamed, I'll move to
`the other construction which is the term another or another part of
`the item of content, which is in the fourth limitation of the claim.
`You know, you mention the simultaneity requirement.
`I've been calling it the fourth limitation, simply because I'm not
`exactly sure what simultaneity adds to the description of the
`claim. So throughout my presentation, I'm going to be referring
`to it as the fourth limitation just for ease and accuracy.
`And so the term another, you know, the Board chose not
`to construe it and gave it its ordinary and plain meaning and the
`Patent Owner came back and wants to identify in their Patent
`Owner Response and wants to identify it as a part of the content
`means a different part of the content and not the same part of the
`content and kind of applying the rules of construction that the
`PTO applies under the broadest reasonable interpretation. There
`is no definition of part of the content in the specification.
`In fact, part of the content --
`JUDGE FISHMAN: Counsel.
`MR. CAVANAUGH: Yes, Your Honor.
`JUDGE FISHMAN: Can you help us identify anything
`in the specification that supports the BRI construction that we've
`adopted?
`MR. CAVANAUGH: Well, you've -- I think you've
`given its ordinary meaning and there was no additional
`construction. I can identify the places -- I'll say it this way, I
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`think there are two parts to your -- two parts to the answer to your
`question. The first is that the specification really doesn't describe
`what another part of the content really is and the Patent Owner in
`their Response when they identify kind of two aspects of the
`specification which relate to it, it's the not really using the term
`other part of the content, but it is talking about the sequencing of
`information, like throughout the different nodes and that's the best
`that we, as the Petitioner, have to rely on in terms of what the
`broadest reasonable interpretation consistent with the
`specification is.
`And, you know, what we've done is try to understand
`what the claim means in the context of the specification using
`what is kind of an everyday nontechnical term of another and I
`think that what we've tried to do is to kind of make that as
`consistent with the specification as possible.
`JUDGE FISHMAN: Right. Given that we need to have
`BRI consistent with the spec, can you help us identify anything in
`the record that identifies portions of the spec with which we are
`consistent with?
`MR. CAVANAUGH: Sure. I think that there are two
`aspects and I'm going to -- I can get those specifically here in a
`moment and I'll give them to you and then they're going to be
`relatively the same as what the Patent Owner has identified
`because I think those are the only areas that address that
`particular issue and I'll just get to them.
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`And I think it's column 9 when it's talking about the
`switch-off between -- and that's column 9. I think it's 50 to about
`60 or 59 where it talks about the switch-off and then there is
`another portion relating to the switch-off in column 11, 45 to -- I
`think it goes all the way to column 12, line 10.
`And what those are doing, and this actually is a great
`segue into my next point, which is that the specification is pretty
`sparse about what constitutes another part of the content. What
`we have is kind of a general description of the transfer from one
`server to another where there is some indication of a change of
`quality or a change of speed and then there's a movement to a
`different server and then the first node or server is disconnected
`and that's pretty much what's there.
`And what we in our Petition tried to articulate was that,
`you know, what's going on is that there is a type of information,
`whether it's a video content or as used in the specification a series
`of eight digits I think to just simplify it, and that it is kind of
`represented in a server and represented in other servers also
`because it has to be -- because there has to be a choice between
`the quality of service in one server and the quality in another.
`So that the challenge that we have with the Patent
`Owner's construction, but also with kind of trying to define it
`consistent with the specification is that, you know, there is no
`kind of description of what another part of the content would be
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`because it's a different -- it's the same content because in patent
`terms 1 through 8 and 1 through 8 on the other server.
`So maybe my left hand is server A and that's 1 through
`8 and my server B is 1 through 8 also, but that's another copy of
`the same information and it may get transmitted to the server in
`faster or slower or greater or lesser quality, and what we're trying
`to do is to kind of represent that as an aspect of the -- kind of our
`construction and also how we're interpreting the references.
`JUDGE BISK: So I have a question.
`MR. CAVANAUGH: Sure.
`JUDGE BISK: Does this ground hinge on your claim
`construction on another? Because when I'm reading it, I can see
`Patent Owner's point that whatever one part means another part --
`when I -- at first glance you think that must be something else.
`So if we interpreted it that way, does that [defeat] the 102 over
`Shastri?
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`MR. CAVANAUGH: It does not. I think that what -- it
`does not make the 102 inoperative or less viable. What it does I
`think is a recognition that the specification is not providing kind
`of a full or an understandable kind of attribute of what another
`part of the content is.
`And when we look at Shastri, like we see the same kind
`of consideration, the selection, and then moving from that to kind
`of either a change in service or a change in server or not and that
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`Patent 8,090,862 B2
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`itself is I think what is described in Shastri it's what's described in
`the patent.
`So to the extent that the construction is going to be kind
`of consistent with the patent, like the prior art is teaching that, so
`we feel under whatever construction that the Board applies, so
`long as it's consistent with the patent, the prior art will -- Shastri
`will anticipate and the other pieces of prior art will --
`JUDGE BISK: So where does Shastri teach the another
`part, is that the sampling embodiment that you were talking
`about?
`
`MR. CAVANAUGH: There are two different
`mappings of Shastri that we've provided. One -- and I can get to
`that now because I think it's -- and I'll speak for a moment of the
`priority in a moment.
`But the mapping -- the two mappings of Shastri relate to
`one is the sampling and the sampling I think the Board knows
`from the Decision on Institution is taking a part of that same file
`and kind of pushing it through to the media player and making a
`determination, is this better quality or not?
`And I think that the another part I think is just in some
`ways imbedded in kind of the way that Shastri is operating,
`because there are a number of different -- you know, the sample
`is necessarily going to be from A, a different server, which is
`what I was talking about. There are two different servers with the
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`same information and that another is going to be necessarily
`different than the stuff that's already played.
`Because if it's already been played, they're not going to
`be sampling that for quality of service. I think it's part of the way
`that Shastri operates that someone skilled in the art --
`JUDGE BISK: But couldn't they sample any of it, just
`to -- does that quality of service -- I mean, it might be more
`efficient for them to sample something they haven't already seen
`because then they don't have to get it twice, but it seems like you
`could tell the quality of the connection by sampling any part of it.
`MR. CAVANAUGH: I think that the -- you could tell
`the quality of service by getting any part of it, but is it going to be
`that part which is played? Because as you recall, that fourth
`limitation is fairly limited in terms of that snapshot in time and
`before or after I think would still -- would still meet that
`limitation.
`JUDGE BISK: So -- and I guess this is kind of where
`I'm getting to, does Shastri -- are you saying that it explicitly
`discloses another part or that it implicitly discloses it or does it
`have to be inherent in Shastri?
`MR. CAVANAUGH: Our position -- and thank you for
`raising it because I think it's important because the Patent Owner
`has said that we've made some inherency arguments. We have
`not made inherency arguments. You know, our argument as
`we've said in the Reply is oriented toward the way that someone
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`skilled in art would understand this reference, its operation and its
`disclosure and we're not saying --
`JUDGE BISK: So when you were saying it's
`necessarily another part, you were not relying on the necessarily.
`MR. CAVANAUGH: We're not relying on the
`necessarily. I mean, to the extent that I looped it into inherency, I
`did not mean to, but I do think that it is a fair reading of Shastri to
`say that as someone skilled in the art and our expert is all of that
`and in reading the reference looks at and says, you know, that
`part of disclosure of Shastri is, indeed, you know another part and
`there's clear testimony about that and it's -- I think it's fully
`described in our Reply.
`But I think also I'd like to raise our -- in some ways our
`second mapping or our -- because, you know, ultimately when
`you look at Shastri and you look at the disclosure of the '862
`patent, you're seeing the same kind of dynamic switching going
`on, except for the mistaken perception that we're relying on
`inherency as opposed to just the implicit disclosure of what
`someone would understand from the reference.
`You know, the Patent Owner doesn't really recognize
`that there are very few differences. There are no differences
`between what Shastri is describing in terms of its overall
`seamless content, it's uninterrupted or kind of that dynamic
`switching between servers is what is being described in Shastri.
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`And so as I made the point a moment ago and I'll make
`it again right here is that to the extent that the claim itself is
`oriented toward what the specification of the '862 is describing or
`disclosing, Shastri has that.
`And I think that if the Board has no questions on that
`second part and, like I said, maybe I'll kind of frame the Shastri --
`you know, because we presented the two mappings in the Petition
`and because the Board acknowledged that that is there and the
`Patent Owner continued to argue that that second mapping in
`their view is insufficient, we believe that that issue is live before
`the Board and can form the basis of the final written decision and
`that's why we've presented it here today.
`I would like, before I sit down and let my colleague
`describe the other references, talk a little bit about the priority of
`the application. And the Patent Owner in their response, had tried
`to antedate Shastri. They presented two declarations from
`inventors with some E-mails and some faxes and the content of
`the E-mails and kind of the evidence for the antedating Shastri or
`kind of proving an earlier conception date and diligent reduction
`to practice I think falls into kind of three buckets.
`One, the content of what they present, the inventors
`present as documentary evidence supporting their evidence of
`conception is insufficient. It doesn't describe the claim
`limitations. It doesn't describe any attribute of what anyone
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`would normally look at to say, okay, you have possession of the
`invention. That's the first failing.
`The second failing is that it doesn't -- like it isn't
`communicated to another where the other person has kind of read
`and understood it. I mean, the lab notebook example, it could be
`like someone looked at the lab notebook, aha, I get it and I
`understand it and they sign the lab notebook. There's none of
`that. They only have uncorroborated evidence from two
`inventors which people in interference practice would know that
`like two inventors can't corroborate like their own invention. It
`just doesn't work that way. So that's the second failing.
`And the third failing of their evidence is a lack of
`diligence. There was a two-and-a-half-month gap and the
`insufficient explanation about why there should be such a long
`gap. And in Petitioner's view, each of those independently would
`fail, would cause their priority case to fail.
`And unless the Board has any questions about Shastri or
`about the priority, I'm going to --
`MR. STROUD: Your Honors, I am going to begin by
`walking us through an explanation of Goldszdmit and Lumelsky.
`I'm going to continue on and address the Patent Owner's
`arguments as to those references and the two grounds of rejection
`instituted over those grounds and then I will briefly, if we have
`time, address the Patent Owner's Motion to Exclude.
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`But I have just three main points that I wanted to raise
`today. The first is we maintain that Goldszdmit alone makes the
`-- renders the claims obvious because Goldszdmit teaches
`rendering and buffering for the purpose of uninterrupted playback
`and does so in the same way that the '862 patent seems to
`disclose.
`Second point is that the combination of the references is
`likewise obvious because it is not required to be a physical
`combination as the Board noted in their Institution Decision, but
`only requires what one of ordinary skill would glean from the
`second reference when analyzing the first. And my third point
`today is that the combination that we disclosed and cited contains
`sufficient motivation to combine the two references. In any case,
`as Lumelsky itself, beyond what we've cited already, is replete
`with such motivation.
`So, first, I'm going to turn to slide 14 for just a brief
`discussion of the two references that we're discussing. So
`Goldszdmit, our reference here as you'll see and from Figures
`2(a) and 2(b) teaches a client in red that requests a multimedia
`stream. This is slide 14. That client then requests -- or then that
`client is directed to the first server, which is in one of two sets,
`that has been identified.
`Moving to the next slide, slide 15, the client receives a
`stream over a connection from a first server as you see in 2(c).
`Figures 2(a) through 2(c) talk about the establishment of the first
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