`______________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________
`
`SAMSUNG ELECTRONICS AMERICA, INC., AND SAMSUNG
`ELECTRONICS CO. LTD., AND APPLE INC. AND LG ELECTRONICS,
`INC.,
`Petitioner,
`
`v.
`
`FASTVDO LLC,
`Patent Owner.
`______________
`
`Case IPR2016-01179
`Case IPR2016-01203
`Patent 5,850,482
`______________
`
`Record of Oral Hearing
`Held: August 24, 2017
`______________
`
`
`
`
`
`Before KARL D. EASTHOM, JEFFREY S. SMITH, and PATRICK M.
`BOUCHER, Administrative Patent Judges.
`
`
`
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONERS:
`
` DAVID L. FEHRMAN, ESQUIRE
` RYAN MALLOY, ESQUIRE
` Morrison Foerster LLP
` Marunouchi 1-Chome
` 29th Floor 5-1
` Chiyoda-Ku, Tokyo 100-6529
` (81)3-3214-6522
`
`ON BEHALF OF THE PATENT OWNER:
`
` WAYNE HELGE, ESQUIRE
` WALTER D. DAVIS, JR., ESQUIRE
` Davidson Berquist Jackson & Gowdey, LLP
` 8300 Greensboro Drive
` Suite 500
` McLean, Virginia 22102
` 571.765.7708
`
`ALSO PRESENT:
`
` Cyndi Wheeler - APPLE
`
`
`
`
`The above-entitled matter come on for hearing on Thursday, August
`
`24, 2017, at the U.S. Patent and Trademark Office, 600 Dulany Street,
`Alexandria, Virginia in Courtroom A, at 11:17 a.m.
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`P R O C E E D I N G S
`- - - - -
` JUDGE SMITH: Good morning. Welcome back,
` everyone.
` We're here in this matter of inter partes review
` 2016-01203.
` This is the matter of Apple and LG Electronics as
` Petitioner versus FastVDO as Patent Owner.
` I'd like to start by getting appearances of
` counsel.
` Who do we have here on behalf of the Petitioner?
` MR. FEHRMAN: Good morning, your Honor. David
` Fehrman of Morrison & Forester. I'm joined by Ryan Malloy of
` Morrison & Forester and Cyndi Wheeler from Apple.
` JUDGE SMITH: Thank you.
` Who do we have on behalf of Patent Owner?
` MR. HELGE: Good morning, Your Honor. Wayne Helge
` for Patent Owner, FastVDO, from Davidson, Berquist, Jackson &
` Gowdey. And I have with me backup counsel, Walter Davis.
` JUDGE SMITH: Thank you.
` I want to go over a few administrative details.
` The hearing order indicated that both sides will have 30
` minutes of argument.
` Petitioner, you'll present your case first. Patent
` Owner will be allowed to respond to Petitioner.
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` Petitioner, if you wish, you may reserve time for
` rebuttal. Do you wish to do so?
` MR. FEHRMAN: Yes, Your Honor. Five minutes.
` JUDGE SMITH: Five minutes for rebuttal. So you'll
` have 25 minutes to present your case.
` You may begin when ready.
` MR. FEHRMAN: Thank you, your Honor.
` I'd like to start. I know that the court was very
` aware of the patent and its contents, but I'd like to do a
` quick review of the background because I think it's very
` important to set up the understanding here of those of skill
` in the art.
` So the state of the art of the prior art is
` described in the '482 patent in fairly clear detail. And
` various things that are relevant to the claims here --
` JUDGE SMITH: If you could, Counsel, when you
` reference the slides, please --
` MR. FEHRMAN: Yes, Your Honor.
` JUDGE SMITH: -- indicate the slide number.
` MR. FEHRMAN: So we're on Slide 4 now. And that's
` the general indication that transformation, quantization, and
` subsequent encoding were known in the art, looking at Column
` 2, lines 11-14 of the patent. We'll go into a little more
` detail. Transforming image data was known as indicated in
` Slide 5, 2, 23 to 32 of the patent. And quantizing was known
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` as we indicate in Slide 6.
` These are all excerpts from the background of the
` patent.
` And entropy coding was known in the art. And, in
` addition, specifically to the patent here and the claims, as
` we indicate on Slide 8 that's in the detailed description,
` split field entropy coding was also known in the art. And
` that's a reference to the Fiala article. As known to those
` skilled in the art, a variety of those codes can be separated
` into prefix and suffix. And that's indicated at Column 16 of
` the '482 patent.
` And another thing that's quite important is the
` observation and the background. As we indicate on Slide 9,
` that the occurrence of bit errors during a storage and
` transmission, so either one of them, of compressed data was
` known in the art. And this is indicated at Column 4, line 66
` to Column 5, line 5.
` And the transmission and storage here is basically
` grouped and indicates that both of these are referred to as a
` channel. And both of those in a channel are subject to
` corruption.
` And another observation in the background is that
` applying unequal error protection during storage and
` transmission was known in the art. And that's to provide
` more efficient error protection by not having to apply the
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` same amount of error protection to different portions of the
` data. And that's indicated on Slide 10.
` The '482 method and apparatus I think the board is
` very familiar with. That's starting on Slide 11 I think
` going through 18. So it indicates that -- at Column 13, that
` there's a split field code providing information in the
` prefix about the length of the suffix. And the suffix is
` represented by the original data that's indicated at Column
` 13, lines 51 to 58. And the term "split field code" is one
` that was coined in the patent, apparently.
` Onto Slide 13, in the disclosed coding scheme, the
` suffix is afforded a lower error of protection than the
` prefix because the prefix is more critical to keep protected
` because it can result in errors that will propagate. And as
` was indicated and discussed in the earlier hearing, it may be
` that the suffix fields are not provided with any protection
` whatsoever. They're lower protected than the prefix all the
` way down to no protection whatsoever. That's indicated on
` Slide 13.
` And in the patent at 16, 15 to 22, the suffix
` fields may be channel encoded with a lower level of error
` protection or may not be channel encoded, thereby providing
` no error of protection.
` And the specification describes this application of
` error protection to split field codes as being the novel
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` aspect of the claimed invention. And that's indicated in
` Slide 14, Column 16, 28 to 35, just a statement that the
` proposed codes have not been previously separated in order to
` provide error resiliency as provided by the method and
` apparatus of the invention.
` The coding scheme is indicated basically in
` Figure 1 and shown here on Slide 15. And it's -- that
` includes a suffix generator, prefix generator, and then the
` application of unequal error protection to those two portions
` of the data. And then the data is applied to either -- sent
` to either a transmitter for transmission or to a storage
` medium.
` And throughout the patent, there's really no
` distinction made between transmission or storage and the
` effect of channel errors on either one of those. They're
` treated essentially the same. We just list exemplary Claim
` 1, Slide 16 and 3, Slide 17.
` Just to review, on the institution decision, we
` have two grounds applicable here. The first ground is
` various other claims based upon obviousness over Kato, the
` same reference that was dealt with in the previous hearing.
` And the second ground is obviousness based upon the
` Fiala article that was identified in the patent and an
` article to Fazel and patent '622 to Fazel indicated on Slide
` 18.
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` Let me first address the obviousness in view of
` Kato. We have four main areas of argument. We'll address
` them one at a time. We indicate the four in Slide 21.
` And we highlight the first one on Slide 22. And
` that's with respect to a first set of Claims 1-3, 7-9, 13,
` 14, 23, and 24. And the Patent Owner argues that it was not
` obvious to modify Kato's prefix to specify the length of the
` suffix more directly.
` In terms of the disclosure of Kato, it discloses --
` very clearly discloses split field coding in terms of the
` division of code word into a first portion PI and a second
` portion RI. And that's indicated at Slide 24.
` The first portions and second portions are
` separated. And this is the portion of the specification at
` 31, 51 to 62 and 31, 65 to 67. And that they apply unequal
` error protection to these different portions of the split
` field code. And that's indicated in terms of the -- the
` split field code is shown in Figure 7, which we have on Slide
` 25. And the code is contained in a data store region.
` The data store region has first portions P sub I on
` the left, second portions R sub I on the right. And in this
` particular embodiment, that's one section of a data store
` region that would have continuous addresses. And the data is
` written from the left to the right for P sub I and from the
` ending edge on the right to the left for R sub I. And in
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` this description, these can both be variable length codes, so
` it's indicated the blocks here, P1 to PN may have different
` lengths and R1 to RN may also have different lengths.
` And the encoder -- encoding apparatus is
` illustrated in Figure 6A that we show here on Slide 26. And
` that shows the ECC encode operations will provide the unequal
` error protection at 603 after the data has been split into
` the two portions to form a split field code.
` And the split field code is contained in the RAM
` 617, which is a big issue here in terms of whether that's the
` the only place that this data store region exists or if it
` exists in other places as well, or it would be obvious to be
` in other places as well.
` In Kato, the code length -- we're on Slide 27 now.
` Kato discloses that the prefix PI provides L, the entire
` length of the code, rather than a direct indication of L2,
` the length of the suffix.
` In our view, that's essentially the only thing
` lacking from Kato. And our position it would have been -- is
` that it would have been obvious that the code could
` directly -- the prefix could directly indicate the length of
` the suffix rather than length -- indicating the length of the
` overall code.
` And we refer here on column -- on Slide 27 to
` Column 24, lines 48 to 45 [sic] which just indicates the
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` overall code length, L, is indicated in the prefix, PI.
` And onto Slide 28. Dr. Lippman explained why it
` was obvious to modify PI to specify L2 instead of L. And he
` basically says, in the end, in order to operate on the
` decoding side, you need to have the value of L2. And whether
` you get that by looking at L and then deriving that or
` providing it directly, the result is the same because you
` have to have that L2 value in order to be able to perform
` your decoding.
` And because of that, Dr. Lippman concludes a person
` of ordinary skill in the art would have found it obvious to
` modify Kato by coding PI to contain the value of L2 directly,
` that there's essentially no difference in the end result of
` obtaining L2 to facilitate the decoding operation.
` And onto Slide 29. The Patent Owner provided no
` expert testimony contradicting Dr. Lippman's testimony.
` Instead, their entire argument here is based upon one
` position, and that's that contrary to Petitioners' argument,
` Kato does not disclose using L2 in decoding PI and RI at the
` receiver. And that's our key issue here. We believe that
` that argument is wrong. And if it is wrong, the Patent Owner
` has no argument that it's not obvious to employ L2 directly
` as opposed to the overall length L.
` Their argument is that because Kato does not
` disclose using L2 during the decoding process, our argument
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` fails at the beginning, at the outset. But as we indicate on
` Slide 30, it's very clear that Kato does employ L2 in the
` decoding process. And we have here a number of excerpts from
` the discussion of the decoding operation, and those excerpts
` are essentially all from Columns 29 and 30. And it's Column
` 29, line 26, to Column 30, line 9, is basically the operation
` of the decoder with respect to its use of L2 in performing
` decoding. It needs to extract L2 and L1 in order to properly
` decode the data.
` So the three statements we have here are explicit
` statements that L2 is obtained. So we have L2 can be
` recovered at this stage. The data VI is recovered using the
` data L2. In the registered 632 and the word length data L2
` for the second portion is executed by subtraction unit. And
` it's set into the register to update the register 632. It's
` very apparent that L2 is in fact used in the decoding
` process.
` JUDGE SMITH: I think Petitioners' point -- I mean,
` Patent Owner's point, if I understand it correctly, that the
` part of Kato that you're referencing now, the Columns 29
` through 30, disclose what you have up there, but it also
` discloses not using L, using L max instead of L.
` MR. FEHRMAN: Well, that's based upon a
` misunderstanding of the overall operation of the decoder,
` Your Honor. The L max is only to properly align the data
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` with the RAM that is used during the decoding process.
` And if I could switch to the Elmo briefly. Is
` there -- is there somebody controlling the Elmo?
` MR. HELGE: He just walked out.
` MR. FEHRMAN: I cannot switch to that.
` If you refer to Column -- to Figure 6B of the
` patent, the Kato patent, it indicates the RAM 637, which gets
` the data VI and VI prime applied to it. And just for
` aligning the overall data with the input to the RAM
` correctly, it does use the maximum area; but in order to read
` out the data correctly from the data store region, which has
` been transmitted by the transmitter and applied with error
` correction code with the unequal error protection, so that
` transmitted data, the data store region is in the
` transmission or it could be in storage.
` In order to properly read that out, the two
` registers, 632 and 631, have to be set to coincidence with
` the proper beginning of each of the words of the data store
` region as indicated in Figure 7.
` So if we go back to Slide 25, the register 632,
` when each word is read out, it starts with the ending edge
` and reads out to the end of that word, but then it needs to
` be reset. And it's only reset by retrieving the value of L2,
` which is what this entire discussion is about. It retrieves
` the value of the L2 for the next data word, so it knows how
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` many to count down to set the starting point for that
` register for reading the next word.
` So L2 and equally L1 has to be used to read out the
` data from the proper point, otherwise, you're not going to
` read out the words that you're decoding.
` So both in respect to Figure 6B and the decoding
` operation and referencing it to the data store region in
` Figure 7, it is abundantly clear that L2 is used and directly
` used and required to be used. And that's indicated. Again,
` it's explicitly stated in Slide 30 at three different places
` and the overall discussion of that section makes it very
` clear how the operation is obtained to retrieve the proper
` words and read them in the right order to then decode them.
` So onto Slide 31, which is the second issue that
` we're dealing with, which is the issue of storing unequal
` error protected data. So Kato discloses -- clearly discloses
` storage of unequal error protected data. The Patent Owner's
` essential argument is that you can't look past the RAM of
` 617, but that's completely inconsistent with Kato and
` inconsistent with the patent itself in terms of what a data
` channel is and what can be considered a store.
` If this data store region is data that is
` transmitted, it's transmitted with error correction applied
` to it in Kato, and it's not restricted to just existing in a
` temporary fashion in the RAM 617 before the error protection
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` is applied to it.
` JUDGE SMITH: Let me ask you about that. What you
` have up there -- the sentence that you have up there ends
` with, "For example, a given former area of the data store
` region."
` Doesn't that support the contention that what Kato
` is talking about here is what was previously stored in the
` data store region, that phrase "former area of the data store
` region"?
` MR. FEHRMAN: I think the former area means the
` front region. So this is --
` JUDGE SMITH: I see.
` You don't think it means previous? The word
` "former" there, you think does not mean previous, it means
` front?
` MR. FEHRMAN: I don't think so, Your Honor. I
` think it's talking about applying the unequal error
` protection code selectively to the two selections of this
` data.
` JUDGE SMITH: Within the data store region itself?
` MR. FEHRMAN: Yes. Well, it's added onto this data
` store region, the error correction codes, and then the data
` store region is transmitted along with the error correction
` codes and received at the decoder.
` JUDGE SMITH: Yeah, I think it's -- as far as I
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` understand, everybody agrees they're transmitted together.
` MR. FEHRMAN: Right. So this only illustrates the
` region without the core pieces.
` JUDGE SMITH: Right. So it's given former area of
` the data store region, does that mean that the first region
` with the PI, within the data store region or --
` MR. FEHRMAN: That's my understanding, Your Honor.
` JUDGE SMITH: -- does that mean former in the sense
` of the data's already been read out from the memory?
` MR. FEHRMAN: I think it may work either way, Your
` Honor.
` JUDGE SMITH: I see.
` MR. FEHRMAN: The first area is what's given the
` higher level of protection, the prefix portion.
` JUDGE SMITH: And whether it's within the physical
` memory or not is ambiguous?
` MR. FEHRMAN: Well, the physical memory 617
` contains precisely just what's shown in Figure 7, which is
` the data store region prior to ECC encoding. And then that
` data store region is subjected to the ECC encoding and
` transmitted.
` JUDGE SMITH: Is that what that says? Does it say
` the data store --
` MR. FEHRMAN: No, this is the unequal error
` protection.
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` JUDGE SMITH: Where does it say the data store
` region in memory 617 is subjected to the unequal error
` protection?
` MR. FEHRMAN: Well, the Patent Owner's argument is
` that the data store region is restricted to memory 617. And
` our position is that's not the case at all.
` First, in terms of it is an obviousness issue, not
` an anticipation. Issue.
` And second, as we've show on the next slide,
` Slide 33, the Kato patent itself refers to that data region
` -- data store region doesn't have to be a physical data
` region, it can be a packet transmission, it can be a data
` region in the case of the disc-shaped recording medium.
` Both of those -- certainly the packet transmission
` is outside of the RAM 617. That's after the ECC encoding,
` modulation, and transmission. And that's -- substantially
` our issue is that the storage here can occur, it would be
` obvious to form storage after the modulation and after the
` ECC correction is applied.
` The Patent Owner is arbitrarily restricting any
` storage of the data store region to the RAM 617. So this is
` just from the patent itself, but --
` JUDGE SMITH: But that still begs the question --
` no, I mean, I think data is stored in the medium. Kato
` discloses that.
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` The question is, does Kato disclose the error
` corrected data -- could you go back to the previous slide.
` MR. FEHRMAN: Sure.
` JUDGE SMITH: So, you know, again, the data store
` region could be the physical medium --
` MR. FEHRMAN: Yes.
` JUDGE SMITH: -- you know, as you pointed out in
` Column 33.
` MR. FEHRMAN: It could be a physical medium.
` JUDGE SMITH: But this basic question is this error
` correction applied to data within that region or does it only
` apply after its read from the data store region?
` MR. FEHRMAN: Well, that region by itself, when
` it's in 617, it does not have error correction applied to it,
` yet, it's following the ECC 603.
` JUDGE SMITH: So what evidence -- when you say its
` obvious to store it after providing error correction, what
` evidence do you --
` MR. FEHRMAN: Well, one evidence is that it's
` talking about in the next slide, Slide 33, a packet
` transmission, that the RAM 617 has nothing to do with a
` packet transmission. The transmission may be that the output
` 605 of the encoder. And then it also equates this and says
` that would apply equally to a disc-shaped recording medium.
` It doesn't restrict that to, well, that's only
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` inside at the RAM 617. And so that's the patent itself.
` And also, and as we recall, the background of the
` patent talks about channels and storage and transmission and
` doesn't make any distinction between them. They're both
` subjected to errors potentially.
` And that's what Dr. Lippman testified to as well,
` that the reason that the data is compressed is so that it can
` be more efficiently stored or transmitted. And the issues
` faced are the same in each case.
` And so in terms of our obviousness position, it's
` that it's obvious that the data at the end of the encoder can
` be stored in the error protected form or it can be
` transmitted, which is exactly what's shown in the patent
` itself.
` And we've never taken the position that the error
` -- that the data in the RAM 617 is error protected. That,
` obviously, occurs at the ECC encode box. And --
` JUDGE SMITH: You have about a minute left.
` JUDGE EASTHOM: Is there any evidence -- or does
` your expert discuss the contention you're making about the
` packet being downstream of the error correction code, the
` packet formation?
` MR. FEHRMAN: That specifically, Your Honor, I
` don't think so; but he's talking about in general here and
` other places in his declaration that the reason for
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` compression is to facilitate more efficient storage and/or
` transmission.
` In general, things are often stored and then
` transmitted. It would be stored in an error protected form
` and then later transmitted.
` JUDGE EASTHOM: Okay.
` JUDGE SMITH: In Figure 6B of Kato, when this
` transmission with the unequal error protection is received,
` is it stored anywhere along the way before being read out of
` the decoder?
` MR. FEHRMAN: Well, I would imagine that it's
` stored to separate data in the ECC decode, but we have not
` identified things that don't have a specific statement of
` storage. So the ECC decode would occur first at 621 and then
` at 635 would be, again, a data store region that's shown in
` Figure 7 without the ECC data applied to it. And that's --
` that data requires L2 to enable read-out of the data -- L1
` and L2 to enable those to be read-out and properly decoded.
` JUDGE SMITH: Okay. Thank you.
` MR. FEHRMAN: Thank you, Your Honor.
` JUDGE SMITH: Patent Owner, you have 30 minutes.
` You may begin when ready.
` MR. HELGE: May it please the board. Thank you,
` Your Honor.
` Your Honor, I would like to pick up on something
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` that Petitioner just talked about. We had seen a number of
` different slides on the -- and, Your Honors, just for
` clarification, we have no demonstratives again. I'll be
` referring to parts of the record, parts of Apple's slides as
` well -- in particular, parts of Apple's slides.
` Your Honor, something that Petitioner has said a
` few times was that Dr. Lippman's paragraph 80 of his
` declaration talks about the reason for compression is for
` more efficient storage or transmission. The question I have
` for you and ask you to think about as you're preparing your
` final written decision is what does that have to do with
` error correction encoding? It has nothing to do to do with
` error correction encoding.
` Compression is about entropy encoding. Compression
` is about reducing the size of your data that comes in, for
` example, into the encoding circuit 602 for storage in the
` RAM.
` Error correction encoding is the opposite of
` compression. Dr. Lippman's statement about compression, the
` purpose of it being for more efficient storage or
` transmission, has nothing to do with the teachings or
` applying the teachings of Kato to then lead you to store
` error correction encoded data. They do not follow.
` JUDGE SMITH: Well, let me just ask about this
` because Petitioners' point, if I understand Petitioner
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` correctly, what Petitioner is saying is, because you have
` this variable length encoding with these split fields, the
` reason why you need to add the additional error correction to
` the prefix field is because if you don't, then you lose
` synchronization, you lose the whole thing. So while the
` additional error correction adds bits instead of compresses
` bits, it does so to make the decoding of the compressed bits
` possible. That's why you would do it to this compressed
` split field encoded data.
` MR. HELGE: Your Honor, I think what you're getting
` at is the idea of the fundamental nature why do we apply
` error correction codes at all. And I think what you're
` getting at is exactly what's shown in Kato 6A, which is we're
` going to apply entropy coding, we're going to store it in
` RAM, and then we're going to put it to the ECC encoder before
` it's transmitted.
` And why do we do it before it's transmitted,
` because that's where the errors could occur. And that's what
` Kato discloses.
` But in terms of Dr. Lippman's statement in
` paragraph 80, and I encourage you to --
` JUDGE SMITH: Could they -- I'm sorry, just real
` quick.
` MR. HELGE: Certainly, Your Honor.
` JUDGE SMITH: Could they also occur if they're
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` stored in an electronic memory?
` MR. HELGE: Your Honor, our background talks about
` the possibility of noisy storage. And what I would
` distinguish here is the concept of noisy storage versus what
` Kato discloses as RAM.
` There's no reason to apply error correction encodes
` to Kato's RAM. It's not classified a noisy. Kato doesn't
` talk about it being noisy.
` Petitioners' just admitted that you don't apply
` error correction encoding to the data that's stored in the
` RAM. So I think just for the purposes of distinguishing the
` two, if there was a recognition that storage is noisy, I
` think our background talks about that as a concept. That is
` not applicable here in Kato. That's not a situation that
` we're faced with.
` Now, what I mentioned with Dr. Lippman's paragraph
` 80, if you read Dr. Lippman's -- well, a number of times
` throughout his declaration, he has very conclusory statements
` and paragraph 80 is one of those, in particular, where he
` says here, I'm going to quote, "Given Kato's teaching that
` the first portions PI should be subjected to higher error
` protection than the second portions RI, one of ordinary skill
` in the art would have recognized the importance of storing PI
` in a higher error protected data block of a storage medium
` than the RI."
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` What that statement doesn't deal with or what it
` really assumes going in is that you're going to store it in
` the first place. In terms -- what he's really dealing with
` there in paragraph 80 is the idea of the different data
` blocks. He's not talking about the idea of storage. And as
` the Petitioner just said, they don't point to anything
` downstream -- well, I want to be clear about that -- they
` don't point to the ECC encoder. They don't point to the
` modulator in Figure 6A.
` Dr. Lippman has a number of these types of very
` conclusory statements, and I want to point this out because
` these are pervasive throughout his declaration.
` He continuously makes assumptions in a manner the
` Federal Circuit has recently spoken to in The personal web
` technologies case, the In re: NuVasive case, these are
` techniques that the Federal Circuit says this is not enough.
` It's not simply whether a person of ordinary skill in the art
` could have seen these two refere