`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`DISH NETWORK, LLC,
`Petitioner,
`
`v.
`
`TQ DELTA, LLC,
`Patent Owner.
`___________
`
`Case IPR2016-01469 (Patent 9,094,268)
`Case IPR2016-01470 (Patent 8,611,404)
`___________
`
`Record of Oral Hearing
`Held: November 8, 2017
`____________
`
`
`
`Before SALLY C. MEDLEY, TREVOR M. JEFFERSON, and MATTHEW
`R. CLEMENTS, Administrative Patent Judges.
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`Case IPR2016-01469 (Patent 9,094,268)
`Case IPR2016-01470 (Patent 8,611,404)
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`APPEARANCES:
`
`ON BEHALF OF PETITIONER:
`
`
`HEIDI KEEFE, ESQUIRE
`JEN VOLK-FORTIER, ESQUIRE
`Cooley, LLP
`3175 Hanover Street
`Palo Alto, CA 94394
`
`
`
`ON BEHALF OF PATENT OWNER:
`
`
`RAJENDRA A. CHIPLUNKAR, ESQUIRE
`PETER MCANDREWS, ESQUIRE
`McAndrews Held & Malloy, Ltd.
`500 West Madison Street
`34th Floor
`Chicago, Illinois 60661
`
`
`
`
`
`The above-entitled matter came on for hearing Wednesday, November
`8, 2017, commencing at 2:45 p.m., at the U.S. Patent and Trademark Office,
`600 Dulany Street, Alexandria, Virginia.
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`P R O C E E D I N G S
`- - - - -
`JUDGE CLEMENTS: Good afternoon. This is the final hearing for
`
`IPR 2016 01469 and 01470 between petitioner DISH Network LLC and
`patent owner TQ Delta LLC.
`
`I'm Judge Clements, participating remotely from San Jose, and in the
`room with you are Judges Medley and Jefferson. At this time we'd like
`counsel to introduce yourselves, beginning with counsel for petitioner,
`please.
`
`MS. KEEFE: Good afternoon, Your Honor. Heidi Keefe on behalf of
`DISH Network. With me at counsel table is Jen Volk-Fortier. With me also
`from Cooley is Steven McBride, and I'm also pleased to introduce my clients
`Larry Katzen and Jim Hemps from DISH Network.
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`JUDGE CLEMENTS: Welcome.
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`And counsel for patent owner?
`
`MR. McANDREWS: Good afternoon, Your Honors. Peter
`McAndrews for patent owner TQ Delta, LLC. I have with me Rajendra
`Chiplunkar, who will be making the argument, Tom Wimbiscus, Chris
`Scharf, and from TQ Delta, Nabha Rege.
`
`JUDGE CLEMENTS: Okay. Thank you. Before we proceed, I have
`a couple reminders. Number one, each party will have 45 minutes total time
`to present arguments for the two cases. Petitioner will proceed first and may
`reserve rebuttal time. Thereafter, patent owner will respond to petitioner's
`presentation, and petitioner may then make use of any time it has reserved.
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`Number two, with respect to demonstratives, please refer to the slide
`number so that it appears in the record and so that I can follow along
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`remotely. I have a copy of your demonstratives in front of me.
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`Any questions, counsel for the petitioner?
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`MS. KEEFE: No, Your Honor.
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`JUDGE CLEMENTS: Okay. Any questions counsel for patent
`owner?
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`MR. McANDREWS: No, Your Honor.
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`JUDGE CLEMENTS: Very good.
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`Ms. Keefe, would you like to reserve any rebuttal time?
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`MS. KEEFE: Yes. I'd like to reserve 20 minutes, please.
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`JUDGE CLEMENTS: I'll give you a heads up when we approach
`that; and otherwise, you may begin when ready.
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`MS. KEEFE: Thank you, Your Honor.
`As Your Honor I'm sure is aware, many of the arguments will overlap
`
`with what you just heard, so I'll try to be brief as to those. The big
`difference, obviously, is the use of the secondary references, the other
`materials that we're using in combination with Bowie. Bowie, of course, is
`in common with all.
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`For the '268 patent, just to reorient us, DISH has proposed Bowie in
`view of Morelli and the 1995 ADSL standard for claims 1, 2, 11, 12. And for
`claims 4, 14, 16, and 18, Bowie in view of Morelli.
`
`For the '470 patent, claims 6, 11, 16, and 20 are rendered obvious in
`view of Bowie, the 1995 ADSL standard, and I'm going to call it the "Van
`reference" -- I apologize -- but for the record to be clear, it is the
`Vanzieleghem, V-A-N-Z-I-E-L-E-G-H-E-M, reference. And I hope the
`Board understands if I simply call it "Van" because I'll never get this
`pronunciation right.
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`Before I dive too much farther into the arguments, I wanted for us to
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`take just a quick step back up to remember what these patents are all about.
`All of these patents and all of the references -- sorry. I should say the patent
`in question and all the references being used to invalidate them are looking
`at multi-carrier systems and ways of reducing power in those multi-carrier
`systems.
`
`One of the best reasons that all of these are easily combinable is that
`in fact even their titles tell us that that's exactly what they are. They are
`multi-carrier systems with low power modes or multi-carrier systems with a
`sleep mode. And so this is one of the few cases that I've had the pleasure of
`arguing where even the titles tell us that they are the proper obviousness
`combinations to make.
`
`With respect to the '268 patent, the first element that I'd like to point
`to is the element in claim 2, maintaining synchronization. Now, obviously,
`when you have two things that are trying to talk to each other, and one of
`them goes to sleep, there's a need for people to be able to make sure that the
`two things that are supposed to talk are on the same page, to use a terrible
`colloquialism, but to make sure that people are speaking the same way, that
`you're still talking about the same things even though one of those elements
`has perhaps gone to sleep and may not be in the same place.
`
`Patent owner is trying to argue a definition of synchronization that we
`think is too narrow. Patent owner's proposed construction of maintaining a
`timing relationship between two transceivers by correcting errors or
`differences in the timing of the timing reference of the transceiver and the
`timing reference of the second transceiver is simply not supported by the
`specification of the patent. Nothing about the last segment -- the by
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`correcting errors or differences in the timing of the timing reference of the
`transceiver and the timing reference of a second transceiver -- finds any
`support in the specification whatsoever. In fact, when asked, and you
`already heard this once before, but when asked, the expert for patent
`admitted that that definition came up in response to prior art, not in response
`to what one of ordinary skill in the art would understand having read the
`patent or the patent specification.
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`Patent owner himself actually admits that there are multiple types of
`synchronization that occur between transceivers, timing being one, clock
`synchronizations, and frame -- frame synchronization being another.
`Nothing in the '268 patent talks about these corrections that have to happen.
`It just says we're going to synchronize it, however that may be. And
`synchronization as used in the claims is broad enough to cover either timing
`or frame synchronization.
`
`Petitioner is relying on the Morelli reference for its general teaching
`that transceivers can maintain synchronization while in low power. The
`Morelli reference specifically talks about the notion of having data packets
`being sent over that include synchronization bits. The primary point of this is
`in Morelli, starting at the very bottom of column 8, line 66, going on to the
`top of column 9, where Morelli describes these data packets that are being
`transported during low power mode for the purpose of synchronization. The
`format of the data packet 45 will typically be governed by the system
`protocol as is conventional. The data packet 45 includes, in order, a sink
`field 46, including synchronizing bits for synchronizing the receiver 16.
`
`Morelli -- the whole point of Morelli was to talk about how you could
`use the transceivers in low power mode. These data packets are transferred
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`in the Morelli system during low power. If it turns out that the information
`is interesting enough to warrant the transmitter being woken, the transmitter
`wakes up, reads the synchronization, synchronizes between the two and goes
`on. It would be obvious to combine the teachings of Bowie with Morelli,
`because Bowie also is trying to figure out a way to reduce the power
`between -- in a multi-carrier system between two transceivers that are
`talking to each other.
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`The argument that patent owner seems to be making is that Bowie
`wouldn't have the exact same packet synchronization that Morelli has. But
`petitioner is not proposing importing the exact data packet synchronization
`scheme from Morelli into Bowie's ADSL scheme. Instead, petitioner's
`argument is, and always has been, that one of ordinary skill in the art using
`Bowie and understanding that Bowie's entire teaching is to take two
`transceivers talking to each other and use low power mode in order to
`conserve power would understand that syncing information is still very
`important, and they would look to Morelli to realize that Morelli already
`taught how to maintain synchronization in that low power mode.
`
`Patent owner's argument seems to be a bodily incorporation argument.
`In other words, if you were to take the exact synchronization packet at 16
`hertz of Morelli and stick it immediately into Bowie, there might be a
`problem because the kilohertz may be exactly the same and they might keep
`waking each other up. But that's never been the argument at all. In fact,
`Bowie specifically points out in itself that Bowie can operate at any number
`of kilohertz. That's in Bowie at column 2, lines 44 to 47.
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`So the argument that somehow Bowie teaches away from using
`Morelli or vice versa simply doesn't make sense and isn't supported by the
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`record.
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`JUDGE JEFFERSON: Counsel, before you move on, in reference to
`patent owner's proposed construction of maintaining synchronization, sort of
`a two-layered question. One, is maintaining synchronization as used in this
`case in the '268 patent the same as the synchronization timing that's just been
`discussed in the related case in the '404 patent?
`
`The disclosures are clearly continuations of each other, so they're
`related. But should they be construed consistently, and if, would you be --
`and this is the second part of the question -- would you be okay with the
`construction that used maintaining a timing relationship between two
`transceivers as being the construction of that term in maintaining
`synchronization.
`
`MS. KEEFE: So I'll take that in two parts, Your Honor. The first part
`is I actually don't believe that even that definition -- I think that definition is
`also too narrow because you have to be able -- synchronization should
`account for frame and timing, and there shouldn't be a timing only for a
`synchronization signal or a synchronization there, because that's simply not
`how the patent is read. The experts all agree that there are multiple types of
`synchronization. The word synchronization or means maintaining
`synchronization by itself is not limited in any way, and it can be a
`synchronization of the frames as opposed to synchronization of timing. And
`so I don't believe it should be that narrow. However, that being said, if
`Your Honors were to adopt that construction, we don't think that anyone has
`shown that synchronization of timing is not disclosed by Morelli in this
`instance, as we've put it out. In fact, Morelli doesn't describe, one way or
`the other, what type of synchronization it's limited to. It says maintaining
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`synchronization full stop, and therefore can be any type of synchronization.
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`So long -- very long answer to a very short question. I don't believe it
`needs to be that narrow, Your Honor, but if you were to find and adopt that
`definition, Morelli still covers it absolutely because it doesn't distinguish
`between the types of synchronization that it has.
`
`In fact, just to wrap up the bow on that, our expert stated in his
`declaration that -- at paragraph 172 -- Morelli discloses a wireless
`communication system that provides synchronization bits in the low power
`mode. Those synchronizing bits perform the same function as the
`synchronizing frame and pilot carrier in the ADSL technology, and so it
`would be obvious to one of skill in the art to simply use those packets for the
`same reason, that they could be received in a system working like Bowie.
`
`Moving on, the only other argument they seem to have is that
`maintaining needs to be something continuous. The first thing I'd like to do
`is step back and simply talk about normal real life in terms of maintaining.
`
`If I maintain a friendship with someone, I don't have to see them every
`single day. I don't have to talk to them every day. I can maintain a
`friendship by reaching out periodically and making sure that we are in
`communication.
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`Similarly if you maintain your lawn in front of your yard, you don't
`have to cut it every day, but once it gets to a point where it's a little too big,
`you need to go ahead and mow it so that it looks good.
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`Here, maintaining synchronization, I believe, in the full broadest
`reasonableness of its interpretation means just that. Making sure that
`synchronization keeps happening, not that at every infinitum second of every
`millisecond synchronization happens; but instead, as you go along, you
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`make sure, within a few milliseconds, do I need to check myself? Do I need
`to come back? Is there a check that I need to do? Do I need to adjust my
`frequencies?
`
`And so synchronization can be maintained in periodic transmissions.
`The ADSL standard, the ANSI standard from 1995, strongly supports this,
`and the ADSL standard specifically says that synchronization of the
`corresponding transmitter and receiver super frame counters is maintained
`using the sync symbol in the ADSL frame structure. And as Your Honors
`know, that sync symbol in that structure comes along only once every I think
`it's 68 frames. And so that is a periodic framing that maintains
`synchronization.
`
`And so we believe that any argument that patent owner will make that
`somehow it can only be maintained by something like a pilot tone or a
`carrier signal is simply not supported by the record or the claim an ordinary,
`reasonable, broad interpretation of maintaining.
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`JUDGE JEFFERSON: Counsel, before you move on then --
`
`MS. KEEFE: Please.
`
`JUDGE JEFFERSON: My understanding of patent owner's argument
`is that in the low power mode there is no synchronization going on and that
`every term of the receiver in this case corresponding with the -- with our
`base is that they are -- in burst mode they are then reinitializing or restarting
`the sync so that that gap period where they are in low power mode, there is
`so synchronization during that period.
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`What is your understanding of that?
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`MS. KEEFE: So my understanding of that, first off, is that there's no
`evidence that that's how Morelli operates. It doesn't say I give you a burst
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`and everybody falls out, and then I come back and everybody falls out.
`That's not what Morelli says at all.
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`What Morelli simply says is that in low power mode data is being
`received in low power mode. And during that low power we are going to
`send data packets which include sync symbols which will be used for
`synchronization. It's that clear. I don't think there's anything that says that
`it's going to fall out and then have to reinitialize itself and start all the way
`over. In fact, what the sync symbol may indicate is that everybody's fine,
`and you are continuing in synchronization. So I think it's taking a worse
`case scenario far too far, and that's simply not what Morelli discloses. And I
`would point Your Honors back to the language at column 9 that says that the
`a data packet includes, in order, a synchronization field, including
`synchronizing bits for synchronizing a receiver. That's the whole point is to
`maintain synchronization of that receiver.
`
`Moving on to the next element. Claim 14 of the '268 provides for
`storing during the low power mode at least one parameter associated with
`the full power mode. Patent owner's construction, I'm not a hundred percent
`sure, to be totally honestly, that I understand what exactly they're trying to
`do with this construction. Patent owner proposes that the parameter be
`associated with the reception of data during normal operation.
`
`If what patent owner is trying to do is say that the parameter has to be
`transmission in and of itself or it has to be the reception of data, I don't think
`that's supported even by the normal language that we see on the screen in
`slide 10. The screen in slide 10, the language they are proposing is a
`parameter associated with the transmission and/or reception of data during
`normal operation.
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`While I still think that their proposed construction is too narrow, and I
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`think that the plain meaning of the words "parameter associated" is enough,
`even under their proposed construction parameter associated with the
`transmission and/or reception data during normal operation, that is disclosed
`by Bowie.
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`Even if you take the absolute tiniest, tiniest lens to Bowie to try to
`figure out what it discloses, Bowie absolutely discloses that there's
`information being transmitted about loop characteristics. Loop and stored.
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`Loop characteristics at its tiniest lens, according to patent owner,
`seems to be things like length of wire, the metal, something physically about
`the wire itself. Even if Bowie was limited to this, which it is not,
`specifically in the bottom of column 5, Bowie talks about loop transmission
`characteristics, not the loop itself.
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`But even if Bowie were limited to physical characteristics, a physical
`characteristic, having information stored about the physical characteristic
`would still be a parameter associated with transmission and/or reception of
`data during normal operation because information about that physical
`structure is associated with information that becomes transmitted along it,
`because we then know something about how that information is going to go
`along the circuit, whether or not noise is going to affect it more, whether the
`attenuation is going to be affected by virtue of the physical characteristics of
`the loop itself.
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`However, Bowie is not so limited. Bowie specifically talks, at the
`bottom of column 5, about loop transmission characteristics. So this would
`be characteristics of the information being passed along the loop. And
`Bowie says the whole reason that I want to store this information before I go
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`into low power mode is so that when I come back to wake up, I've already
`got that information here. So I don't have to reinvent the loop as it were. I
`don't have to go all the way back to square 1 every time because I have some
`of that information stored. And certainly that's information associated with
`the transmission and/or reception of data during normal operation.
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`Morelli also discloses the fact that -- sorry -- in the next -- the next
`characterization is that the receiver portion remains in full power mode
`while the transmitter enters the low power mode. That's the next step of the
`claim itself.
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`Morelli discloses: Nevertheless, it's equally the position to have either
`the transmitter or the receiver be designed to enter a sleep mode, as
`described herein, while the other is always in an active mode.
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`Morelli specifically discusses in excruciating detail how to turn either
`the transmitter off and then wake it back up, turn the receiver off, wake it
`back up, and then says and there might be times where they are both off
`except that the receiver always receives at least the ability to receive
`information to say hello, I'd like to talk to you and then concludes all of that
`discussion with a very specific rendering that there may be times while you
`want the receiver portion to be in full mode while the transmitter is in low
`mode.
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`This embodiment is fully disclosed by Morelli's disclosure, which,
`again, separately discloses how to work with each of the transmitter and the
`receiver separately. And we point that out in slide 11 in figure 6A through
`figure 9 for the transceiver, and figures 3 through 5 for the receiver. I think I
`said that backwards. Transmitter for 6A and 9, and receiver for 3 through 5.
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`The argument that patent owner seemed to be making is that single
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`sentence saying you can turn one all the way off while leaving the other on
`as not enabled, but that's simply not true if you read the entirety of the
`specification.
`
`Patent owner also has an argument that Bowie teaches away from
`keeping the receiver active during low power because Bowie is somehow
`supposed to be achieving maximum power saving. That's simply not
`supported by the Bowie disclosure. Bowie talks about conserving power.
`Bowie talks about being able to use less power than before, not use the least
`of amount of power possible or make sure that we have maximum power
`savings.
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`The methods and apparatus for conserving power are specifically
`described in the abstract of Bowie and in column 5, lines 45 through 47.
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`Even if would one were to argue you have to get at least as close as
`you can, it's unrebutted that a transmitter uses a hundred times the power of
`a receiver. And so having a system where you can turn the transmitter off,
`even while you leave the receiver on, would certainly be a massive savings
`of power, and therefore would satisfy even the notion of trying to save as
`much power as possible even by leaving the receiver on.
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`Bowie in view of Morelli and the ADSL standard discloses receiving
`data during that low power mode. Morelli's receiver 16 is on to receive
`incoming packets while the transmitter 12 is off. And we show this through
`the quotes that we have from column 16 -- sorry column 15, lines 46 through
`52, and column 16, lines 29 through 34, which is on slide 14.
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`When this popped out for me that it was actually true was when I was
`reading the second quote on the right-hand side of the slide: In the event the
`MAC 30 determines in block 108 that the packet being received is of the
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`type that requires a response. However, the MAC 30 proceeds to block 12
`[sic]. At such time as the MAC 30 reaches block 112, the MAC provides a
`control signal to switch the transmitter from sleep to active mode.
`
`And that tells us that the transmitter has been asleep. So the receiver
`received those packets while the transmitter was off, because otherwise how
`would it know to tell the transmitter it was time to wake up. And so that
`column and that quotation there really knocked that one home for me.
`
`Bowie in view of Morelli and the ADSL standard also disclosed
`storing during the low power mode at least one parameter associated with
`the full power mode.
`
`Patent owner's argument regarding the type of data stored in Bowie is
`not commensurate with the scope the claim. The scope of the claim says any
`information, any parameter, that's associated with that full power mode.
`And as we've already discussed definitely Bowie has that even at its
`narrowest reading.
`
`Bowie in view of Morelli also discloses that the loop characteristics
`are specifically stored from the full power mode. We've already discussed
`that. And petitioner's expert declaration makes very clear that the
`parameters in Bowie are acquired during that handshaking, so during that
`initialization. That's the thing that you're going to want to store.
`
`Now, going on to -- we're going to have to talk a little bit later about
`how -- what type of things are going to be stored. Not just loop
`characteristics, when you put the combination together, are stored. In fact,
`Bowie says I am ADSL. I have ADSL components. Therefore, one of
`ordinary skill in the art would look to the ANSI reference to figure out what
`those ADSL components would use, what communications would they have.
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`Case IPR2016-01470 (Patent 8,611,404)
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`Bowie says I want to store information that happens during the
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`handshaking -- and I'm sorry -- for the record, I keep shaking my hands
`together -- but Bowie says I want to store information that occurred during
`the handshake so that when I wake up again, I don't have to go all the way
`back through the handshake.
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`One of ordinary skill in the art reading Bowie would say, maybe if
`there are ADSL compliant pieces, I should go to ANSI standards to see what
`ADSL requires in its handshake to see if there's other information that I
`might want to store, including, for example, fine gain parameters, fit
`parameters, things that are in the handshaking portion of the ADSL
`reference.
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`And so in fact, the combination of Bowie and the ADSL standard
`absolutely store, at a minimum, parameters associated with full power mode
`in terms of the handshaking because if one, reading Bowie, realized the
`exchange for the handshaking happens during full power mode, and I'm
`going to store information associated with that handshake before I go into
`low power mode so I can use it later, it makes the most sense to store as
`much information as possible. I'll look to the ANSI standards and take in all
`of the things that they have for handshaking in order to speed this up even
`further. And that's supported in paragraph 136 of our expert's declaration
`and referenced in our reply at page 20.
`
`Bowie does not require reinitialization. We've already talked a little
`bit about that today. One of the things I'd like to do is give a somewhat silly
`example. Initialization to me means initial time something is happening. It's
`when you start something. Like the word implies. Initial, initialization.
`
`If you were to meet someone for the very first time that you'd never
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`met before, politely, you would walk up to that person, stick out your hand,
`shake it, and say, "My name is Heidi. I'm from California. I'm a patent
`attorney. I happen to be in D.C. today." The person on the other end would
`say, "My name is Joe. I live in D.C. I've never met a patent attorney. I
`don't know what you do." That's the initialization.
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`The next time I -- and I store in my mind that Joe is from D.C. and he
`doesn't like patent attorneys. The next time I see Joe, I have stored
`information about our initialization. I don't have to walk up and shake his
`hand and tell him I'm from California or that my name is Heidi. I don't have
`to ask him where he's from. I've stored that. I can simply walk up and say,
`"Hi Joe. How are the Redskins?" and not talk about the patents at all.
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`It sounds farfetched from the example in the patent itself and yet,
`Your Honors, it's actually not. Reinitialization means exactly what it says,
`to start all the way over from scratch. The abstract of the patent itself, of the
`patent at issue, the abstract, the last sentence says: The full transmissions
`and reception capabilities of the transceiver are quickly restored when
`needed without requiring the full (and time consuming) initialization
`commonly needed to restore such transceivers to operation after inactivity.
`
`Bowie specifically --
`
`JUDGE CLEMENTS: Ms. Keefe, just a housekeeping note -- sorry to
`break your cadence, but we've hit 25 minutes.
`
`MS. KEEFE: That's fine, Your Honor. Thank you so much.
`Bowie specifically talks about storing that information so that we can
`
`get to things faster so that we don't have to redo things. The may and
`permissive language about when handshaking may be required -- for
`example, when temperature has changed, maybe we have a new device in
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`line -- is exactly the same type of handshaking even the '268 and the '404
`patents specifically contemplate doing. They contemplate reinitializing if
`the signals say the temperature's changed too much, we probably need to
`start over.
`
`Moving on quickly to the simple limits that are left in the '404 that we
`haven't covered yet, the '404 also requires a parameter associated with full
`power mode operation. That's absolutely disclosed in Bowie. Patent
`owner's construction of a parameter associated with transmission and/or
`operation, again, I think is a little bit too narrow, but is still met. So I'm not
`sure what they were intending with that. No construction is needed, though,
`because the claim language goes on to explain what those parameters are,
`and they are a fine game parameter and a fine option parameter.
`
`Synchronization signal, here we used the Van reference. And the Van
`reference specifically talks about the synchronization signal in low power
`mode of ADSL. And so it is exactly the signal that we need. Again, I think
`that the definition here is too narrow, but even if it were the signal of the
`Van reference is exactly the same as the signal in Bowie, which is itself
`ADSL compliant and could be either a pilot tone specifically disclosed in the
`Van reference or the sync frame, also specifically disclosed in the Van
`reference.
`
`Combining Bowie and ADSL is not the result of any hindsight.
`Bowie says: I am ADSL compliant; therefore, one of ordinary skill in the art
`would look to ADSL standards in order to determine how Bowie was
`functioning. This is at paragraph SRS 523.
`
`Patent owner's argument that there would be no value in storing fine
`gain and bit allocation because Bowie always reinitializes, finds absolutely
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`no support in the record. And in fact, quite the contrary, Bowie says the
`more I store -- essentially Bowie implies, I should say, the more I store, the
`faster I'll be able to get up to speed. And that's why the combination would
`have you storing as much as