IPR2017-00044
`Patent 7,144,296 B2
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`UNITED STATES PATENT AND TRADEMARK OFFICE
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`____________________________________________
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`____________________________________________
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`PANTIES PLUS, INC.
`Petitioner
`
`v.
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`BRAGEL INTERNATIONAL, INC.
`Patent Owner
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`IPR2017-00044
`Patent 7,144,296 B2
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`
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`JOINT MOTION TO TERMINATE
`UNDER 35 U.S.C. § 317(a)
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`Patent 7,144,296 B2
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`
`____________________________________________
`
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`____________________________________________
`
`
`PANTIES PLUS, INC.
`Petitioner
`
`v.
`
`BRAGEL INTERNATIONAL, INC.
`Patent Owner
`
`IPR2017-00044
`Patent 7,144,296 B2
`
`
`
`JOINT MOTION TO TERMINATE
`UNDER 35 U.S.C. § 317(a)
`
`
`
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`IPR2017-00044
`Patent 7,144,296 B2
`Pursuant to 35 U.S.C. § 317(a), Petitioner Panties Plus, Inc. (“PPI”)
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`and Patent Owner Bragel International, Inc. (“Bragel”) jointly request
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`termination of the Inter Partes Review of U.S. Patent 7,144,296 in IPR2017-
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`00044.
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`Petitioner and Patent Owner have entered into a written confidential
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`settlement agreement that fully resolves all underlying disputes between the
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`parties, including IPR2017-00044 against U.S. Patent 7,144,296 B2. The
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`Parties are concurrently filing a copy of the Settlement Agreement as Ex.
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`1025 along with a request to treat it as confidential business information
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`pursuant to 35 U.S.C. § 317(b). The undersigned represents that there are no
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`other agreements, oral or written, between the parties made in connection
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`with, or in contemplation of, the termination of the present proceeding and
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`that Ex. 1025 represents a true and accurate copy of the agreement between
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`the parties that resolves the present proceeding.
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`On June 21, 2017, the Parties informed the Board of the settlement via
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`e-mail and requested authorization to file a joint motion to terminate the
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`proceeding with respect to both the Patent Owner and the Petitioner. As set
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`forth in an e-mail dated June 21, 2017, the Board authorized the filing of the
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`requested joint motion to terminate this proceeding as to both parties.
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`Accordingly, Petitioner and Patent Owner jointly request termination of the
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`IPR2017-00044
`Patent 7,144,296 B2
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`present proceeding.
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`Public policy favors terminating the present inter partes review
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`proceeding. Congress and federal courts have expressed a strong interest in
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`encouraging settlement in litigation. See, e.g., Delta Air Lines, Inc. v.
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`August, 450 U.S. 346, 352 (1981) (“The purpose of [Fed. R. Civ. P.] 68 is to
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`encourage the settlement of litigation.”); Bergh v. Dept. of Transp., 794 F.2d
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`1575, 1577 (Fed. Cir. 1986) (“The law favors settlement of cases.”), cert.
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`denied, 479 U.S. 950 (1986). The Federal Circuit places a particularly strong
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`emphasis on settlement. See Cheyenne River Sioux Tribe v. U.S., 806 F.2d
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`1046, 1050 (Fed. Cir. 1986) (noting that the law favors settlement to reduce
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`antagonism and hostility between parties). And, the Board’s Trial Practice
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`Guide stresses that “[t]here are strong public policy reasons to favor
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`settlement between the parties to a proceeding.” Office Patent Trial Practice
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`Guide, 77 Fed. Reg. 48,756, 46,768 (Aug. 14, 2012).
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`Ending this IPR early promotes the Congressional goal of establishing
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`a more
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`efficient patent
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`system by
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`limiting unnecessary
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`and
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`counterproductive costs. See Changes to Implement Inter Partes Review
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`Proceedings, Post-Grant Review Proceedings, and Transitional Program for
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`Covered Business Method Patents, 77 Fed. Reg. 48,680 (Aug. 14, 2012).
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`Permitting termination as to all parties provides certainty and fosters an
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`IPR2017-00044
`Patent 7,144,296 B2
`environment that promotes settlements, creating a timely, cost-effective
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`alternative to litigation.
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`Additionally, termination of this IPR is appropriate as the Board has
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`not yet “decided the merits of the proceeding.” See, e.g., Office Patent Trial
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`Practice Guide, 77 Fed. Reg. 48756, 48768 (Aug. 14, 2012). PPI filed its
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`petition for inter partes review on October 7, 2016. The Board instituted a
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`proceeding on April 12, 2017. No depositions have taken place and neither
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`the Patent Owner nor the Petitioner have submitted any substantive briefing
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`post-institution. The parties have now settled their dispute, and have
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`reached agreement to terminate this inter partes review. The USPTO can
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`conserve its resources through terminating the proceedings now, removing
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`the need for the Board to further consider the arguments, to issue an
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`Institution Decision, and to render a Final Decision. Furthermore, no other
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`party’s rights will be prejudiced by the termination of this proceeding.
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`As the Board requested in its e-mail sent June 21, 2017, the parties
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`identify the following related district court litigations involving the ‘296
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`Patent to which the Patent Owner is a party, and the current status of each
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`litigation.
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`(1) Bragel International, Inc. v. Charlotte Russe, Inc. et al., 2:15-cv-
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`08364 (CACD). This case was voluntarily dismissed on June 20, 2017.
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`IPR2017-00044
`Patent 7,144,296 B2
`(2) Bragel International, Inc. v. Styles For Less, Inc. et al., 2:15-cv-
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`01756 (CACD). This case was voluntarily dismissed on June 20, 2017.
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`(3) Bragel International, Inc. v. AGaci LLC, 2:15-cv-08439 (CACD).
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`This case was voluntarily dismissed on March 7, 2016.
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`(4) Bragel International, Inc. v. E-Retail Society d/b/a Bra Society et
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`al., 2:15-cv-07148 (CACD). This case was voluntarily dismissed on
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`October 30, 2015.
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`(5) Bragel International, Inc. v. Charlotte Russe, Inc., 2:14-cv-07691
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`(CACD). This case was voluntarily dismissed on February 11, 2015.
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`(6) Bragel International, Inc. v. Remi Collections, LLC, 2:14-cv-
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`02946 (CACD). This case was dismissed pursuant to a stipulated dismissal
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`on August 15, 2014.
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`(7) Bragel International, Inc. v. Love Culture, Inc., 2:11-cv-04336
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`(CACD). This case was voluntarily dismissed on September 6, 2011.
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`Other than the 2:15-cv-08364 (CACD) and 2:15-cv-01756 (CACD)
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`civil actions, Petitioner was not a party to any of the foregoing proceedings.
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`If this joint motion to terminate is not granted, the Patent Owner will
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`continue to participate in the proceeding by disputing that U.S. Patent
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`7,144,296 B2 should be invalidated on the ground on which Inter Partes
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`Review IPR2017-00044 was instituted.
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`IPR2017-00044
`Patent 7,144,296 B2
`If this joint motion to terminate is not granted, the Petitioner will not
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`continue to participate in the proceeding by arguing that U.S. Patent
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`7,144,296 B2 should be invalidated on the ground on which Inter Partes
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`Review IPR2017-00044 was instituted.
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`There are no pending, related inter partes review proceedings.
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`Therefore, for at least these reasons, Petitioner and Patent Owner
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`jointly respectfully request termination of the Inter Partes Review IPR2017-
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`00044 of U.S. Patent 7,144,296.
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` Respectfully submitted,
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`___________________________
`Sergey Kolmykov
`Reg. No. 47,713
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`Lead Counsel for Petitioner
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`Date: June 21, 2017
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`CERTIFICATE OF SERVICE
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`IPR2017-00044
`Patent 7,144,296 B2
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`The undersigned hereby certifies that a copy of the foregoing Joint Motion
`to Terminate the Proceeding for Inter Partes Review of U.S. Patent
`7,144,296 B2 was served on June 21, 2017 via electronic mail directed to the
`attorneys of record for the patent at the following addresses. Patent Owner
`has consented to electronic service.
`
`Thomas J. Daly
`LEWIS ROCA ROTHGERBER CHRISTIE LLP
`655 North Central Avenue, Suite 2300
`Glendale, CA 91203-1445
`Tel: 626-795-9900
`Fax: 626-577-8800
`tdaly@llrc.com
`
`Katherine L. Quigley
`LEWIS ROCA ROTHGERBER CHRISTIE LLP
`655 North Central Avenue, Suite 2300
`Glendale, CA 91203-1445
`Tel: 626-795-9900
`Fax: 626-577-8800
`kquigley@llrc.com
`
`Sami I. Schilly
`LEWIS ROCA ROTHGERBER CHRISTIE LLP
`655 North Central Avenue, Suite 2300
`Glendale, CA 91203-1445
`Tel: 626-795-9900
`Fax: 626-577-8800
`sschilly@llrc.com
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`Date: June 21, 2017
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`Respectfully submitted,
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`
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`___________________________
`Sergey Kolmykov
`Reg. No. 47,713
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