`______________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`______________
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`SAMSUNG ELECTRONICS AMERICA, INC., AND SAMSUNG
`ELECTRONICS CO. LTD., AND APPLE INC. AND LG ELECTRONICS,
`INC.,
`Petitioner,
`
`v.
`
`FASTVDO LLC,
`Patent Owner.
` ______________
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`Case IPR2016-01179
`Case IPR2016-01203
`Patent 5,850,482
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` Record of Oral Hearing
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` Held: August 24, 2017
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`Before KARL D. EASTHOM, JEFFREY S. SMITH, and PATRICK M.
`BOUCHER, Administrative Patent Judges.
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER, SAMSUNG
` ELECTRONICS AMERICA, INC., AND SAMSUNG
` ELECTRONICS CO. LTD., AND APPLE INC. AND LG
` ELECTRONICS, INC.:
` DERRICK W. TODDY, ESQUIRE
` RETT SNOTHERLY, ESQUIRE
` KLARQUIST SPARKMAN, LLP
` 121 SW Salmon Street
` Suite 1600
` Portland, Oregon 97204
` 503.595.5300
`
`ON BEHALF OF THE PATENT OWNER, FASTVDO, LLC:
` WAYNE HELGE, ESQUIRE
` WALTER D. DAVIS, JR., ESQUIRE
` DAVIDSON BERQUIST JACKSON & GOWDEY, LLP
` 8300 Greensboro Drive
` Suite 500
` McLean, Virginia 22102
` 571.765.7708
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`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 10:02 a.m.
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` P R O C E E D I N G S
` JUDGE SMITH: Good morning. Welcome to the Patent
` Trial and Appeal Board.
` We're here this morning to hear inter partes review
` number 2016-01179. Samsung is the Petitioner. FastVDO is
` the Patent Owner.
` I'd like to start by getting appearance of counsel.
` Who do we have here on behalf of Petitioner?
` MR. TODDY: Your Honor, Derrick Toddy from
` Klarquist Sparkman, LLP, on behalf of Petitioners, Samsung
` Electronics America, Inc., and Samsung Electronics Company
` Limited.
` I'd also like to introduce Rett Snotherly with me
` today from Samsung.
` JUDGE SMITH: Thank you.
` Who do we have on behalf of Patent Owner?
` MR. HELGE: Good morning, Your Honor. My name is
` Wayne Helge. I'm here from the firm of Davidson, Berquist,
` Jackson & Gowdey. And with me is my backup counsel, Walter
` Davis.
` JUDGE SMITH: Thank you.
` I'd like to go over a few administrative details
` quickly before we begin. Our trial hearing order indicated
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` that there would be 30 minutes of argument for each side.
` Petitioner, you will go first presenting your
` case-in-chief.
` Patent Owner, you will then be allowed to respond
` to Petitioner.
` Petitioner, if you wish, you may reserve time for
` rebuttal. Do you wish to do so?
` MR. TODDY: Yes, Your Honor. I'd like to reserve
` ten minutes, please.
` JUDGE SMITH: Ten minutes for rebuttal. Thank you.
` One administrative detail as well. When you're
` referencing your demonstrative slides, please make sure you
` keep conscious mind to referencing a particular slide number.
` It helps for the transcript. It also help us follow you.
` Petitioner, when you are ready, you may begin.
` MR. TODDY: May it please the board, the '482
` patent, which is the subject of this inter partes review,
` merely combines a number of known coding techniques, some
` examples of which are entropy coding, split field coding, and
` channel coding using unequal error protection.
` While the '482 patent acknowledges that each of
` these coding techniques was known in the art, it goes on to
` state that "The proposed codes have not previously been
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` separated in order to provide error resiliency as provided by
` the method and apparatus of the present invention." That's a
` quote from the '482 patent, column 16, lines 33 to 35.
` As Petitioner's have shown in the petition and,
` again, in the reply, in view of the complementary embodiments
` of the Kato reference, it is clear that the '482 claims
` recite nothing more than an obvious combination of these
` known coding elements. For this reason, the challenged
` claims should be canceled in view of the Kato reference,
` whether alone or in the case of the two data link claims, in
` further view of the Wei reference.
` Petitioner's grounds upon which this IPR was
` instituted are as follows: The first ground is that Claims 1
` through 3, 5, 12 through 14, 16, and 28 are unpatentable as
` obvious over the Kato reference, which is Exhibit 1002. And
` then Claims 6 and 17 are unpatentable over that same Kato
` reference in further view of Wei, which is Exhibit 1004.
` FastVDO does not dispute that the vast majority of
` challenged claim elements are found in Kato. In fact, with
` the exception of the storage claims, its sole challenge to
` the majority of claims is to argue that one of skill in the
` art would not have been motivated to combine Kato's
` complementary embodiments either with one another or with the
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` Wei reference.
` As Petitioner's have shown, that is simply not the
` case. Petitioner's have further shown that the data storage
` elements that appear in a small subset of the claims, 5, 16,
` and 28, also would have been obvious in view of Kato's
` disclosure of separate storage, of first and second code word
` portions, and the application of a higher level of error
` protection to those first code word portions.
` Can you switch to the Elmo, please?
` There are three challenged independent claims in
` this IPR. Claim 1 is exemplary and it recites four main
` elements, three of which involve generating.
` JUDGE SMITH: Just real quick, when you put
` something on the screen, our colleague in Denver is unable to
` see the screen. Can you just please announce what you have
` on the screen?
` MR. TODDY: Sure.
` So I put on the screen Claim 1 of the '482 patent.
` This is from page -- as it is reproduced on page 15 of the
` petition, there is a portion of the last element of the claim
` that does not appear that I'll be talking about shortly. And
` then I'll switch over to that. That's on page 16.
` But I'd like to first address the three generating
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` steps of Claim 1. The first is generating a plurality of
` code words. The next is generating a first portion of each
` code word. And the added element there is that there is
` information in that first portion which is representative of
` a predetermined characteristic of the associated second
` portion. The third generating step is generating the second
` portion. And also included there is the concept that that
` second portion is representative of the respective portion of
` the data that is represented by the code words.
` I've now put up on the screen page 26 of the
` petition which includes a portion of the Figure 1A from the
` Kato reference.
` Kato teaches that there are two code word portions
` as well; a first portion, CJI, and a second portion, CEI.
` That CJI is encoded from a category index which Kato refers
` to as JI. And what's important about that category index is
` it can be used to determine the word length for the variable
` length word that is used in the second portion, CEI. And
` then CEI, in turn, as required by the claim, includes
` information representative of the data that is being
` represented by the code word.
` Turning back to the lower portion of page 15 of the
` petition, the remaining element is providing error protection
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` to at least one of the first portions of the plurality of
` code words while maintaining any error protection provided to
` the respective second portion, continuing on page 16,
` associated with the "at least one first portion at a lower
` level than the error protection provided to the respective
` first portion."
` I've now put on the screen the petition, page 29.
` The petition goes on to state that Kato's fourth
` embodiment provides a data store region that separately
` stores first portions of code words, which in this case it
` calls PIs, and second portions of code words, which it refers
` to as RIs.
` As with the first embodiment that we just
` discussed, Kato discloses that the PIs can be used to
` determine the length of the second portion's RIs.
` Kato goes on to say that because of this, unequal
` error protection should be applied with higher error
` protection being provided to the first portions than to the
` second portions.
` JUDGE SMITH: Let me just -- for my benefit, the PI
` and RI in this embodiment, are they the same as the JI and
` EI?
` JUDGE BOUCHER: I'm sorry, I can't hear who's
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` speaking.
` JUDGE SMITH: Sorry. How about now, is this
` better?
` JUDGE BOUCHER: Yeah, that's fine. Thank you.
` JUDGE SMITH: The first embodiment, the JI and the
` EI, is that the same as the PI and RI here?
` MR. TODDY: Kato does not expressly state that they
` are the same, but the way in which they are described and the
` most important characteristic that they share is that
` characteristic of that first portion being determinant of the
` length of the second portion and the second portion
` representing some data that's being represented by the code
` word.
` JUDGE SMITH: Okay. Thank you.
` MR. TODDY: Thus, Kato's fourth embodiment teaches
` providing higher levels of error protection to first code
` word portions that have the exact same characteristics as the
` first code word portions in its first embodiment. Namely,
` the first portions determine the length of the second code
` word portions, such that if an error is introduced in those
` first portions, it will propagate. While if there's an error
` in the second portions, it will not.
` One of ordinary skill would have understood from
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` reading the whole of Kato's disclosure, as Petitioners point
` out, that combining the fourth embodiment's unequal error
` protection scheme, namely, first separately storing first and
` second code word portions and then providing higher levels of
` error protection to those first portions would provide
` exactly the same benefit in Kato's first embodiment as it
` provided in the fourth, namely, preventing propagation of
` errors due to a loss of code word synchronization.
` And that motivation to combine was set forth in the
` petition, for example, at pages 39 through 41, citing to
` Dr. Stevenson's declaration at 83 to 87, and then again at
` 88. And Kato makes clear in Column 31, lines 55 through 59,
` exactly what I just said, namely, that errors can propagate
` through those first code word portions, whereas they will not
` propagate through the second code word portions.
` FastVDO's argument regarding this combination of
` Kato's embodiments suffers from a number of deficiencies.
` First, it misunderstands the Kato reference. FastVDO states
` that the fourth embodiment merely adds a benefit the first
` embodiment already provides. As FastVDO's expert later
` admitted, the fourth embodiment does add to the first
` embodiment something that the first embodiment lacks.
` Namely, higher error protection is provided for
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` those first code word portions that determine the length of
` the second code word portions, potentially preventing
` catastrophic error propagation. FastVDO ignores the
` discussion of how those embodiments would work together to
` provide that benefit, which is at least as fulsome as the
` similar description in the '482 patent itself of applying
` unequal error protection.
` The '482 patent merely describes adding known
` unequal error protection, such as can be found in a 1968
` text, to provide an appropriately high, quote from the '482
` at 16, 15 through 18, "level of error protection for the
` first code word portions."
` FastVDO's next argument against the obviousness of
` combining these two embodiments misstates the law regarding
` the requirements for combining references. And I would refer
` to the party's papers on that point, unless Your Honors have
` questions about the law regarding combinations there.
` JUDGE BOUCHER: Can I just ask a general question.
` Kato refers to embodiments, but it was translated
` from Japanese. Do you agree that these are, in fact,
` distinct embodiments in Kato or are these really aspects of a
` single embodiment?
` MR. TODDY: Our expert on this testified that they
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` were complementary embodiments that could be used together
` essentially as needed. The first embodiment deals with a
` certain aspect. The third embodiment, for example, adds
` transforming and quantizing steps in advance of the coding
` similar to what the '482 patent teaches. And then the fourth
` embodiment really deals with transmission and how that's
` going to be handled, and error protection is especially
` important in that context.
` So while it is not our position that they are all a
` single embodiment, if you will, or a single unified whole,
` they are complementary in that way, and that was our expert's
` testimony in that point as well.
` JUDGE BOUCHER: Okay. So you do agree, then, that
` you need to provide sufficient reasoning to combine the
` teachings from the separate embodiments then?
` MR. TODDY: Yes, Your Honor. And that's what I was
` just referring to about specifically the shortcoming in the
` first embodiment is that if no error protection is provided
` to those first portions, you are going to have a great risk
` of error propagation. There is -- as FastVDO points out,
` there is some error resiliency demonstrated in that first
` embodiment, but as its expert admitted at deposition, that
` error resiliency does nothing to solve the problem of a JI
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` that is misdecoded.
` And that JI is so centrally important because if
` it's misdecoded, not only are you not going to get the right
` value for EI, which is error enough, but you're not going to
` know where to start decoding the very next code word. And
` that loss of code word synchronization can continue to
` perpetuate throughout all subsequent code words.
` That's exactly the problem that the '482 patent
` pointed out and touted as one of its benefits of the claimed
` invention, but it already existed in Kato and had already
` been provided by Kato's fourth embodiment.
` On the screen now is Slide 10 from our
` presentation. And on Slide 10, there are two things. First
` is a quote from the Patent Owner response which states that,
` "The petition that Dr. Stevenson proposed to incorporate
` Kato's fourth embodiment into the first embodiment in order
` to provide a benefit that Kato's first embodiment already
` possesses."
` As Dr. Zeger, FastVDO's expert, admitted at
` deposition, that's simply not the case. He acknowledged that
` if the JIs are not properly decoded, if they're wrong, those
` would be examples where you would get error propagation. And
` he also acknowledged that those are examples that the fourth
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` embodiment would provide additional error protection for,
` acknowledging that is basically correct.
` JUDGE SMITH: What's the error protection that's
` provided by the first embodiment?
` MR. TODDY: By the first --
` JUDGE SMITH: By the first embodiment. You said it
` does provide some error protection.
` MR. TODDY: There is -- what the first embodiment
` refers to is error resiliency such that -- so the way the
` first embodiment works is to calculate the value for a given
` piece of data. It is basically subtracted from the prior
` piece of data and an estimate is given and then there's some
` remainder data.
` And if there's a small enough difference between
` the first piece of data and the second piece of data, the
` first embodiment teaches that that -- that will not -- that
` will not carry through.
` JUDGE SMITH: I see.
` MR. TODDY: But that does not address, and the
` expert admitted, that does not address the JI problem.
` JUDGE SMITH: I see.
` MR. TODDY: I'd like to skip ahead to Claim 5.
` Switch over to the Elmo, please.
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` So the main substantive challenge to Kato from
` FastVDO is that this data storage element that appears in
` Claims 5, 16 and 28, according to FastVDO, is lacking in
` Kato. Up on the screen is page 50 from the petition setting
` forth the language of Claim 5. And in particular, Kato shows
` providing a data storage region, shown there in Figure 7 of
` Kato, that separates the PIs from the RIs.
` Kato goes on to state that those first portions PI
` are made higher in error correction ability. It further
` states in Claim 9, that an ability of error correction with
` respect to the first portions in the data store region is
` higher than an ability of error correction with respect to
` the second portions.
` It is Petitioner's position, then, that providing
` unequal error protection to the first data portion that is
` higher than the error protection provided to the second, if
` not expressly disclosed in Kato, certainly would have been
` obvious in view of what Kato does teach, namely, that those
` PIs are provided with a higher level of error protection.
` In fact, in Apple's petition, which will be
` discussed later today, there's an additional cite in Kato 32,
` lines 2 through 6, which they will be discussing that further
` addresses that point.
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` JUDGE SMITH: But for your citing, in your
` petition, you're relying on Claim 9 of Kato; is that right?
` MR. TODDY: Claim 9 as well as the prior cite,
` which is at column 31, lines 65 to 67. And then the general
` disclosure of Kato as a whole talking about providing higher
` levels of error protection to those data portions that are
` separately stored.
` Interestingly --
` JUDGE SMITH: You have less than a minute left.
` Sorry, the clock is not blinking.
` MR. TODDY: Sure.
` Interestingly, stored very similar to -- and up on
` the screen right now is Figure 6 of the '482 -- stored in a
` way that's very similar with the exception of the fact that
` there is not an expressed statement that storage must be done
` while the first and second portions are in the data store
` region, it certainly is suggested by Kato and obvious in view
` of Kato's disclosure.
` JUDGE SMITH: Okay. Thank you.
` Counsel, before you begin, I just want to confirm,
` you haven't provided any slides or other demonstratives for
` us to look at; is that right?
` MR. HELGE: Correct, Your Honor. Your Honor,
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` Patent Owner only intends to refer to the record. If
` necessary, we're happy to put up some portions of the record
` onto the Elmo.
` JUDGE SMITH: That's fine. I just wanted to make
` sure.
` You may begin when ready.
` MR. HELGE: Thank you, Your Honor.
` May it please the board, Your Honors, during Patent
` Owner's deposition of Dr. Stevenson, as we identified in our
` Patent Owner's response, there was an indication from
` Petitioner that -- during redirect in particular, that there
` was going to be some reference to Column 33, lines 2 through
` 7 or line 1 through 7 of Kato, some discussion by
` Dr. Stevenson.
` In Patent Owner's response, we warned the board
` that perhaps there would be some new arguments and, indeed,
` that is exactly what has happened here as Your Honors have
` recently heard from us through the telephone conference
` seeking a motion to strike.
` Your Honors, the petition as it deals with Claims
` 5, 16, and 28, what we'll call the storage claims for today,
` there's no resemblance to what Petitioners have said recently
` in their reply. And, in fact, what I can tell Your Honors
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` regarding the oral hearing order is that while Petitioner
` didn't address these slides during this morning's
` presentation yet, we have outstanding objections to Slides
` 18, 20, 21, 23, and 25.
` And our objection is simply this: These slides
` refer to the petition for support for the arguments contained
` in those slides. And, indeed, the petition, in our view and
` the basis of our objection, the petition does not support
` those arguments.
` Your Honors, because these arguments have been made
` in the reply and Your Honors order on the motion to strike
` granted Patent Owner's permission to deal with this issue, I
` think we need to go through. Our foremost position is that
` the board should not consider these new arguments; but even
` if you do or even if you wanted to look at them, these
` arguments do not carry the day for Petitioner. They do not
` resolve the deficiencies that Petitioners' petition then
` challenges of those storage claims possess.
` Judge Boucher, I put up page 18 of the Petitioners'
` reply onto the Elmo just for reference. This specifically is
` directed to the portion that during the telephone conference,
` we pointed out as beginning Petitioners' new arguments on
` these storage claims.
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` Your Honors, in this paragraph, beginning with
` "Additionally," there are two -- as we can count here, it
` seems to be reserving the right to make other arguments
` because it does say some nonlimiting examples here, but we
` see at least two arguments that are new. You won't see a
` discussion in the petition about buffers or buffers and
` modems or the buffer in Figure 1B of Kato. You won't see
` that discussion.
` JUDGE EASTHOM: Counsel, can I ask you a question.
` Is your contention that in Kato, they actually perform error
` correction on the fly?
` MR. HELGE: Your Honor, it seems to be the case.
` JUDGE EASTHOM: So there's no storage of these
` elements? I mean, I just don't understand how you could
` actually perform error correction without storing them
` somewhere.
` MR. HELGE: Well, Your Honor, what I'd like to add
` here is, in particular, the storage claims don't simply
` require storage. It's a certain arrangement of storage. And
` Petitioners have pointed to Figure 7 for that arrangement of
` storage, but there's no disclosure of using that exact same
` arrangement.
` For example, P1 through PN, an open area, and then
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` RN through R1, backing into it, in either the ECC encoder or
` in the modulator or the demodulator that show up in Kato's
` Figures 6A and 6B. So, Your Honor, your question was whether
` error correction encoding could happen on the fly. And what
` I would submit to you is that there's no evidence that the
` error correction encoder 603 of Kato performs error
` correction encoding on the data storage region that we see in
` Figure 7 in exactly that same format.
` JUDGE SMITH: But isn't that what Claim 9 --
` Petitioner just cited Claim 9 of Kato. Isn't that what Claim
` 9 is looking at?
` MR. HELGE: Your Honor, I think it's not. I think
` it's not. What it talks about is an ability of error
` correction.
` Claim 9 is directed to the act of adding error
` correction encoding. If we look at perhaps above where the
` Petitioner is focusing your attention, you can see that
` Claim 9 is directed to this act of adding error correction.
` Now, it's undisputed, Dr. Zeger, our expert,
` Dr. Stevenson, their expert, Dr. Delp [ph], their expert
` during litigation, they all agree that in the RAM, there are
` no error correction codes. And they all agree that the
` error correction codes are applied to data coming out of
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` the ECC encoder 602. The way Kato describes that data coming
` out is in bit stream format.
` So, Your Honor, your question is spot on in that it
` doesn't necessarily have to happen on the fly. We can think
` of a variety of different ways that maybe this error
` correction encoding is happening, but there's no disclosure
` in Kato that says that it's happening the same way that we're
` storing the data store region in Figure 7.
` So, for example, the ECC encoder -- I'm just
` throwing this out as a hypothetical -- could collect P1 and
` P2 and P3 and know that it's going to have to apply a certain
` level of error correction encoding. It could receive another
` portion, it could receive another portion, until it gets to
` an open area of this data stream realizing that that open
` area delineates the difference between the first portions and
` the second portions. And then begin to take part of those
` second portions.
` And, Your Honor, the modem -- or the modulator as
` we see in Figure 6A could perform exactly the same way. It
` could receive a small set of bits and send them, a small set
` of bits and send them.
` JUDGE SMITH: Even if it does, wouldn't that still
` encompass Claim 5? I mean, Claim 5 just has storing the
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` prefix and the suffix where the prefix is stored with a
` higher level of error protection than the suffix. Wouldn't
` that -- you know, even if what you're saying is true about
` Claim 9 of Kato, wouldn't that -- wouldn't you still have the
` first portion and second portion stored?
` MR. HELGE: Your Honor, the difference there, what
` I've just described this concept of perhaps collecting a
` portion of the bits, error correcting encoding them, sending
` them to the modulator, transmitting them out, what is missing
` in Claim 5 is this concept of a first data block and a second
` data block. And even if -- if you treat the entire memory --
` if you treat the entire memory as being a data block and you
` say at some point everything is being stored in the same data
` block, then you don't meet the limitations in Claim 5 because
` you don't have some showing of a first data block and a
` second data block.
` JUDGE SMITH: Well, I mean, Claim 5 uses the term
` "data block," but, I mean, the Kato reference of Claim 9 uses
` the term "first portion" and "second portion." Is there a
` difference between the claim data block and the disclosure of
` first portion and second portion in Kato?
` MR. HELGE: Well, Your Honor, what they're talking
` about in Claim 9, again, is the step of adding an error
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` correction code. Now, that occurs at 603. That doesn't
` occur in the RAM or in the data store region that we see in
` Figure 7 of Kato. But what they then talk about is an
` ability of error correction with respect to the first
` portions.
` We don't dispute the fact that the PIs or the P1
` through PN in Figure 7 of Kato are going to get a different
` level of error correction. That's what Kato talks about when
` it discloses this block 603. And there's going to be a
` different level in -- for the R values, RN -- or R1 through
` RN.
` But Claim 9 is talking about an ability of the
` error correction with respect to the first portions. So it's
` talking about --
` JUDGE SMITH: I'm sorry to interrupt. It says,
` "First portions in the data store region." The "first
` portion in the data store region."
` MR. HELGE: Yes, Your Honor. And it's talking
` about -- again, the data store region is in the RAM. I mean,
` there are three places effectively where Kato discloses a
` data store region; in RAM 617 and the ECC -- or excuse me, in
` the encoding circuit 602, there's a RAM 635 as well in the
` decoding circuit, and then there's a discussion of Figure 8,
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` which is the background, right, which is sort of the contrast
` between the arrangement of data in Figure 7 and the
` arrangement of data in Figure 8.
` But if we track this language from Claim 9, which
` talks about an ability of error correction, it actually
` tracts very closely to the specification of Kato in where it
` talks about this same idea of an ability of error correction
` to the data still in RAM 617 that hasn't gone to the ECC
` encoder.
` An ability of error correction really is sort of a
` vision that when this data comes out of the data store
` region, comes out of RAM 617, it's going to go to the ECC
` encoder.
` Now,