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`_________________________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`_________________________________
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`PASON SYSTEMS USA CORP.,
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`Petitioner,
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`v.
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`AUTO-DRIL, INC.,
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`Patent Owner.
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`Patent No. 6,994,172
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`Issue Date: February 7, 2006
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`Title: WELL DRILLING CONTROL SYSTEM
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`_________________________________
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`Case IPR: 2016-00624
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`_________________________________
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`PASON SYSTEMS USA CORP. AND AUTO-DRIL, INC.’s JOINT
`MOTION TO TERMINATE PROCEEDING PURSUANT TO
`35 U.S.C. § 317
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`Pursuant to 35 U.S.C. § 317(a), Petitioner Pason Systems USA Corp.
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`(“Pason”) and Patent Owner Auto-Dril, Inc. (“Auto-Dril”) (collectively, “the
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`Parties”) jointly request termination of the Inter Partes Review of U.S. Patent No.
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`6,994,172, Case No. IPR2016-00624 based on a resolution between the Parties.
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`I.
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`Reasons for Granting the Motion
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`Generally, the Board expects that a proceeding will terminate after the filing
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`of a joint motion to terminate. See, e.g., Office Patent Trial Practice Guide, 77 Fed.
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`Reg. 48,756, 48,768 (Aug. 14, 2012). Pursuant to 37 C.F.R. § 42.20(b), the
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`Petitioner sought prior authorization from the Board to file this request on
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`April 12, 2016. The Board gave the Parties authorization to file this request via
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`email on April 19, 2016. Case No. IPR2013-00428, Paper No. 56 provides
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`guidance as to the content of a motion to terminate. There, the Board indicates that
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`a joint motion, such as this one, should (a) include a brief explanation as to why
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`termination is appropriate; (b) identify all parties in any related litigation involving
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`the patent at issue; (c) identify any related proceedings currently before the Office,
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`and (d) discuss specifically the current status of each such related litigation or
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`proceeding with respect to each party to the litigation or proceeding. Id. at 2. This
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`motion satisfies each of the above requirements and is accompanied by a copy of
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`the Parties’ Confidential Global License and Dismissal Agreement (“the
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`Agreement”), as required by 35 U.S.C. § 317(b) and 37 C.F.R. § 42.74(b).
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`A. Brief Explanation of Why Termination is Appropriate
`Termination is appropriate because a final written decision has not been
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`reached in this proceeding. Pason filed its petition for Inter Partes review on
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`February 16, 2016. Auto-Dril has not filed a preliminary response, and one is not
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`due until May 16, 2016. This Inter Partes review has not been instituted.
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`Termination of this proceeding is appropriate because Petitioner will no
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`longer be participating in this proceeding, and the Board has not decided the merits
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`of the proceeding. The Parties have reached an agreement to terminate this Inter
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`Partes review, which is memorialized in their Agreement. The Agreement also
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`terminates the Parties’ related district court litigation regarding the ‘172 Patent:
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`Auto-Dril, Inc. v. Pason Systems USA Corp., Civil Action No. 4:16-cv-00293 in
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`United States District Court for the Southern District of Texas – Houston Division
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`(consolidated for pretrial purposes under lead case Auto-Dril Inc. v. National
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`Oilwell Varco, L.P., Civil Action No. 4:16-cv-00280). This district court litigation
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`was dismissed per the Parties’ Agreement on April 6, 2016.
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`B. All Parties in Any Pending Related Litigation Involving the
`Patent at Issue
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`In addition to Petitioner, National Oilwell Varco, L.P. and Canrig Drilling
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`Technology, Ltd. are defendants in two related patent infringement actions styled
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`Auto-Dril, Inc. v. National Oilwell Varco, L.P., Civil Action No. 4:16-cv-00280,
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`and Auto-Dril, Inc. v. Canrig Drilling Technology, Ltd., Civil Action No. 4:16-cv-
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`00287, both currently pending in United States District Court for the Southern
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`District of Texas (consolidated for pretrial purposes under lead case Auto-Dril Inc.
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`v. National Oilwell Varco, L.P., Civil Action No. 4:16-cv-00280). The Agreement
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`to terminate the district court litigation only includes termination as to Petitioner,
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`and not to National Oilwell Varco, L.P. and Canrig Drilling Technology, Ltd.
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`In addition, National Oilwell Varco, L.P. and Patent Owner are also parties
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`in a related civil action styled National Oilwell Varco, L.P. v. Auto-Dril, Inc., Civil
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`Action No. 5:15-cv-27 currently pending in United States District Court for the
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`Eastern District of Texas.
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`C. Related Proceedings Currently Before the Office
`There is no other pending inter partes review proceeding involving the
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`‘172 Patent.
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`D. Current Status of Each Such Related Litigation or Proceeding
`With Respect to Each Party to the Litigation or Proceeding
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`Sections II.B and C above indicate the status of each related litigation or
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`proceeding with respect to each.
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`II.
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`Confidential Global License and Dismissal Agreement
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`Pursuant to 35 U.S.C. § 317(b) and 37 C.F.R. § 42.74(b), the Parties’
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`Agreement is in writing, and a true and correct copy is being filed concurrently
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`herewith as Exhibit 1018.1 The Parties are also filing concurrently herewith a joint
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`request under 35 U.S.C. § 317(b) and 37 C.F.R. § 42.74(c) to treat the Agreement
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`as business confidential information and keep it separate from the files of the
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`‘172 Patent.
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`III. Conclusion
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`For all of these reasons, Pason and Auto-Dril respectfully request
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`termination of the Inter Partes Review of U.S. Patent No, 6,994,172, Case No.
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`IPR2016-00624.
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`Dated: April 20, 2016
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`Respectfully submitted,
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`ARNOLD, KNOBLOCH &
`SAUNDERS, L.L.P.
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`/s/ Gordon T. Arnold
`Attorney Reg. No. 32,395
`Gordon T. Arnold
`docketing@amold-iplaw.com
`4900 Woodway, Suite 900
`Houston, Texas 77056
`Telephone: 713-972-1150
`Facsimile: 713-972-1180
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`ATTORNEY FOR PETITIONER
`PASON SYSTEMS USA CORP.
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`1 The Agreement is being filed via the Patent Review Processing System (PRPS)
`with access to “Parties and Board only.”
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`Dated: April 20, 2016
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`Respectfully submitted,
`Gray Reed & McGraw, P.C.
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`/s/ David G. Henry, Sr.
`David G. Henry, Sr.
`Reg. No. 32,735
`dhenry@grayreed.com
`Michael D. Ellis
`Reg. No. 72,628
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`mellis@grayreed.com
`1300 Post Oak Blvd., Suite 2000
`Houston, Texas 77056
`(713) 986-7000
`(713) 986-7100 (Telefax)
`ATTORNEY FOR PATENT
`OWNER AUTO-DRIL, INC.
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`6
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`CERTIFICATE OF SERVICE
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`I hereby certify that on this 20th day of April 2016, a copy of the foregoing
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`Joint Motion to Terminate Proceeding was served by email upon the following:
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`David G. Henry, Sr.
`GRAY REED & MCGRAW, P.C
`dhenry@grayreed.com
`1300 Post Oak Blvd., Suite 2000
`Houston, Texas 77056
`Telephone: (713) 986-7000
`Facsimile: (713) 986-7100
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`Respectfully submitted,
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`/s/ Godon T. Arnold
`Gordon T. Arnold
`Attorney Reg. No. 32,395
`ARNOLD, KNOBLOCH & SAUNDERS, L.L.P.
`docketing@amold-iplaw.com
`4900 Woodway, Suite 900
`Houston, Texas 77056
`Telephone: 713-972-1150
`Facsimile: 713-972-1180
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`ATTORNEY FOR PETITIONER
`PASON SYSTEMS USA CORP.
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