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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`TERADATA OPERATIONS, INC.,
`Petitioner,
`
`v.
`
`REALTIME DATA LLC,
`Patent Owner.
`____________
`
`Case IPR2017-00557
`Patent 7,358,867 B2
`____________
`
`Record of Oral Hearing
`Held: February 20, 2018
`____________
`
`
`
`
`Before GREGG I. ANDERSON, CHARLES J. BOUDREAU, and JASON
`J. CHUNG, Administrative Patent Judges.
`
`
`
`
`
`

`

`Case IPR2017-00557
`Patent 7,358,867 B2
`
`
`
`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`JAMIE R. LYNN, ESQUIRE
`ELIOT D. WILLIAMS, ESQUIRE
`Baker Botts, LLP
`1299 Pennsylvania Avenue, N.W.
`Washington, D.C. 20004-2400
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`KAYVAN B. NOROOZI, ESQUIRE
`Noroozi, P.C.
`1299 Ocean Avenue
`Suite 450
`Santa Monica, California 90401
`
`
`
`
`The above-entitled matter came on for hearing on Tuesday, February
`
`20, 2018, commencing at 1:30 p.m., at the U.S. Patent and Trademark
`Office, 600 Dulany Street, Alexandria, Virginia.
`
`
`
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`Case IPR2017-00557
`Patent 7,358,867 B2
`
`
`P R O C E E D I N G S
`- - - - -
`JUDGE ANDERSON: Thank you all. Good afternoon. This is a
`hearing for IPR2017-00557. Petitioner is Teradata Operations, Inc.
`Realtime Data LLC is the owner of the challenged patent, U.S. patent
`number 7,358,867. I am Judge Anderson. I am participating remotely, as is
`obvious to all of you. Judge Boudreau is also joining remotely from
`California. Judge Chung is there in person. As to the remote judges, you
`need to understand that when you refer to demonstratives, which we have
`available to us, you need to give us the slide number so that we can go to
`that slide and understand and follow your argument.
`Per our hearing order, each party will have 30 minutes to present
`argument here. Petitioner has the burden to show unpatentability of the
`claims and will therefore proceed first followed by patent owner. Petitioner,
`you may reserve time to rebut patent owner's opposition to your case.
`At this time let's have counsel, beginning with petitioner, to
`introduce themselves. So petitioner, can you please introduce counsel.
`MR. LYNN: This is Jamie Lynn with the law firm Baker Botts on
`behalf of petitioner, Teradata Operations. And Eliot Williams is here as
`well.
`
`JUDGE ANDERSON: You are going to need go over to the
`microphone because I didn't really get any of that. Thank you.
`MR. LYNN: Sorry, Your Honor. This is Jamie Lynn with Baker
`Botts on behalf of Teradata. And with me is Eliot Williams, also of Baker
`Botts.
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`Case IPR2017-00557
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`
`JUDGE ANDERSON: Who is going to take -- Mr. Lynn, who is
`going to be the speaker in today's case?
`MR. LYNN: Your Honor, I have the speaking role today.
`JUDGE ANDERSON: Very good. Thank you, Mr. Lynn.
`Patent owner, can you tell us who will be handling your case. I
`think I already know this one, but for the record, Mr. Noroozi, why don't you
`go ahead and introduce yourself.
`MR. NOROOZI: Yes, Your Honor. Kayvan Noroozi on behalf of
`patent owner, Realtime Data, and I will be presenting on behalf of patent
`owner.
`
`JUDGE ANDERSON: Thank you, Mr. Noroozi.
`So one other thing before we get started, sometimes during the
`presentation of the opposing party, there will be a desire to make an
`objection. Perhaps the argument is not covered in the papers beyond the
`scope of what evidence there is or the arguments that have not been
`previously presented or there may be some other argument that you have an
`objection. So any of these objections, what I want the parties to do is to hold
`onto them, make a note of them. When it's your turn to speak, please go
`ahead and address the issue then. You have three experienced judges here
`who can sort through this. We want to hear the uninterrupted flow of the
`argument without interruption. So that is what we would like to hear.
`Mr. Lynn, do you understand that?
`MR. LYNN: Yes, Your Honor.
`JUDGE ANDERSON: And Mr. Noroozi?
`MR. NOROOZI: Yes, Your Honor.
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`Case IPR2017-00557
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`
`JUDGE ANDERSON: Now, one other thing, we didn't get any
`objections to the demonstratives. So we are going to proceed unless
`something very unusual happens here on the basis that there is no currently
`pending objection to any of the demonstratives. Is that correct on your
`behalf, Mr. Lynn?
`MR. LYNN: Yes, Your Honor.
`JUDGE ANDERSON: And Mr. Noroozi?
`MR. NOROOZI: Yes, Your Honor.
`JUDGE ANDERSON: Okay. Very good. So petitioner, would
`you like to reserve some rebuttal time, Mr. Lynn?
`MR. LYNN: Yes, Your Honor. I would like to reserve 10
`minutes, if possible.
`JUDGE ANDERSON: Very good. That is possible. With that,
`Mr. Lynn, you may proceed.
`JUDGE CHUNG: Because I don't see the timer displayed, I'll let
`you know when I have several minutes to go, but I'm setting it for
`20 minutes right now.
`MR. LYNN: Thank you, Your Honors. May it please the Board,
`once again, my name is Jamie Lynn on behalf of petitioner, Teradata
`Operations, Inc. And I'll just ask, can everybody a hear me okay?
`JUDGE ANDERSON: Yes.
`MR. LYNN: Thank you. Your Honors, this IPR deals with five
`grounds. And here on slide 2 we have them listed. On slide 3 we have a
`listing of the claims, the claim hierarchy that shows this is a simple single
`independent claim with six dependent claims. And rather than go into a
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`Case IPR2017-00557
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`bunch of background information, I know you all have reviewed the
`references in the prior art. I would just like to start with the first main
`argument that patent owner argues or makes, and that's with respect to
`whether Hsu teaches data blocks.
`Moving on to slide 6, I just want to make it clear, this argument
`does not refer or doesn't implicate at all ground 9, which is the Franaszek
`and Hsu obviousness ground.
`Slide 7 is a listing of the claim. It has all of the claim elements
`there. And as the parties have annotated with A, B and C, in slide 8 we have
`a flowchart to show sort of, I find it easier to track the claim through the
`conditional statement and the branches. Now, we won't get into the specifics
`of the claim much more today than to simply say on slide 9, this claim does
`have data blocks throughout. So on slide 9, we are showing that the claim
`16 is about processing data blocks, and petitioner does not run away from
`that.
`
`On slide 11, we have a listing of the patent owner's arguments.
`The patent owner argues that the petition does not explain how Hsu teaches
`the data blocks of claim 16, that Dr. Creusere's declaration provides no
`opinion on what aspect of Hsu teaches claim 16's data blocks or how any
`aspect of Hsu does so, and that the petition fails to state what in Hsu teaches
`the data blocks of claim 16.
`So it's important to say what does Hsu actually show? And on
`slide 13, we have a pullout from the very first page of Hsu. And here we see
`Hsu says that we present a compression technique for heterogeneous files,
`and it says that the system uses statistical methods to determine the best
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`Case IPR2017-00557
`Patent 7,358,867 B2
`
`algorithm to use in compressing each block of data in a file. So it's block
`based. We probably should have highlighted the last sentence there as well,
`the file is then compressed by applying the appropriate algorithms to each
`block.
`
`And on slides 14 and 15, we have a few other snippets which are
`all cited in the petition and in Dr. Creusere's declaration showing that this is
`about blocks. So Hsu states that heterogeneous compressor treats a file as a
`collection of fixed-size blocks, and it goes from there and it discusses how
`Hsu's processing is on a block basis.
`And so Your Honors, there's really no argument or there's been no
`argument from patent owner that Hsu doesn't have blocks. The argument is
`with respect to the petition and whether the petition sufficiently discusses the
`data blocks and shows that Hsu has data blocks. So what we've done
`between slides 17 and 24 is to have some pulls-outs from the petition just to
`show exactly how the petition itself has explicitly tracked the processing of
`the blocks of Hsu as Hsu processes these blocks to determine what kind of
`compression to use and to actually compress them.
`So on slide 17, it's the very first element. And at the top of the
`page here we can see the petition states Hsu's compressor creates a file as a
`collection of fixed-size data blocks. It states, Hsu explains that applying the
`appropriate algorithm to each block permits better space savings. And then
`the final sentence on that page says, a person of ordinary skill in the art
`would understand that Hsu's disclosure of heterogeneous files that are best
`compressed on a block-by-block basis requires receiving a plurality of data
`blocks.
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`Case IPR2017-00557
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`
`And the same thing, the same kind of discussion occurs for all the
`other elements. So on slide 18, this is with respect to the determining step.
`So determining whether or not to compress data, here again, we say Hsu
`explains that the compressibility of a block of data and the appropriate
`algorithm to do so are determined by the type of data contained in the block
`and the type of redundancy. And then the last sentence there says the
`compressor determines and then applies the selected algorithms to the blocks
`separately.
`JUDGE ANDERSON: So Mr. Lynn, on the block, I want to go
`back to slide 17 for just a moment, the last sentence there, a POSITA would
`understand that it's block-by-block, and that cites to, I can't remember,
`Dr. Creusere.
`MR. LYNN: Dr. Creusere.
`JUDGE ANDERSON: Thank you. That cites to his declaration.
`And it seems like this is pretty much a conclusory statement. Does he have
`anything that he's relying on? Is that on the top of that page that he's relying
`on to reach that conclusion?
`MR. LYNN: Dr. Creusere's conclusion that a POSITA would
`understand that Hsu's disclosure of heterogeneous files that are best
`compressed on a block-by-block basis requires receiving a plurality of data
`blocks, I mean, I can certainly point you to portions of Dr. Creusere's
`declaration where he discusses the portions of Hsu -- I mean, Hsu
`throughout discusses data blocks.
`Let me -- again, we are looking at limitation 16A. And I will pull
`up -- I apologize, you don't have the screen here in front of you. I'm looking
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`Case IPR2017-00557
`Patent 7,358,867 B2
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`at paragraph 91. I think the best place to look is in the Teradata
`Exhibit 1032. In that exhibit we highlighted and annotated the portions of
`Dr. Creusere's declaration that talks about blocks. And so in paragraph 91,
`Dr. Creusere points to Hsu at 1098. He points to Hsu at 1102. He points to
`Hsu at 1197. And for example, Dr. Creusere quotes Hsu here and he says
`Hsu's heterogeneous compressor treats a file as a collection of fixed-size
`data blocks, each containing a potentially different type of data, and thus,
`best compressed using different algorithms.
`JUDGE ANDERSON: Thank you.
`MR. LYNN: So Your Honors, I believe we were on around slide
`20. Frankly, Your Honors, through slides 24 we've pulled out, we've pointed
`to the portions and in particular on slide 20, I'll point out the very last
`sentence that says Hsu provides that he developed a heterogeneous
`compressor that automatically chooses the best compression algorithm to use
`on a given variable length block of a file. Based on both the qualitative and
`quantitative properties of that segment, the compressor determines and then
`applies the selected algorithms to the blocks separately. So those are all
`discussing blocks, all discussing Hsu's processing of blocks. So we don't
`think there's any doubt when you look at the actual petition that the mapping
`of Hsu is to the blocks of Hsu.
`And Your Honors, if we turn to slide 26, we also have a pull-out,
`and those are the paragraphs that is Dr. Creusere points to. In fact, if we
`look at Exhibit 1032 which we've submitted, we think it's very clear that
`Dr. Creusere and the petition mapped the blocks of Hsu, that is the data
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`Case IPR2017-00557
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`blocks of Hsu, as they are processed and mapped to the actual claim
`limitations.
`Your Honors, going to slide 28, the petition doesn't argue that Hsu
`uses the term "data blocks." Instead, Hsu uses the term block of data or 5K
`blocks or you can see block of data. So on page 1097 of Hsu, 1102 and
`1103, we see the usage of the term "block of data" or just "block." But
`there's never actually -- Hsu never actually uses the term "data block."
`So on slide 29 we have a pull-out that shows a portion of Hsu that
`we've quoted in our brief. And here you can see on slide 29 that Hsu says
`that his heterogeneous compressor treats a file as a collection of fixed-size
`blocks. And on the next slide, that's slide 30, we can see the way it's been
`quoted in the petition and also Dr. Creusere's declaration is we've added the
`word "data" in front of block when we've talked about this quote. So we are
`explicitly making clear that the blocks of Hsu are data blocks as required by
`the claims. And that was done in both the petition and in Dr. Creusere's
`declaration, just to make it abundantly clear.
`Now, Your Honors, the patent owner has made a big deal about
`Dr. Creusere's testimony that in addition to the blocks of Hsu, he also
`believes that the heterogeneous files of Hsu could be considered data blocks
`and that if you were to trace the processing of those heterogeneous files, if
`you were to trace that through Hsu, you would also find that that processing
`anticipates the claims. To the extent that patent owner plans to make
`arguments about that, I would like to reserve my time for rebuttal unless
`Your Honors have questions about Dr. Creusere's testimony. But I would
`like to discuss that on rebuttal, if that's okay.
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`
`JUDGE ANDERSON: Whatever you want, counsel.
`MR. LYNN: So with that, I would like to turn to the second
`argument that patent owner makes about Hsu. And that has to do with
`whether or not to compress with an encoder. Once again, we are now on
`slide 40. And once again, this does not implicate ground 9. It only
`implicates grounds 1, 2, 5 and 6. If we look at slide 41, we can see the
`flowchart of claim 16 again. We see that claim 16 has a receiving step at
`step A, a conditional statement where you determine whether or not to
`compress each one of said plurality of data blocks with a particular one or
`more of several encoders. And then if you make the determination to
`compress, then you follow the C branch which goes up, and you compress
`the file and you output the compressed block and the data compression
`descriptor. If you decide you are not going to compress a block, then you
`output the uncompressed block and a null data compression type descriptor.
`The patent owner argues and quibbles with -- we are on slide 43,
`quibbles with the conditional statement that, B, determining whether or not
`to compress each one of said plurality of data blocks with a particular one or
`more of several encoders. And what they point to is they say that Hsu's
`determination not to compress doesn't take any particular encoders into
`consideration at all. Now, there's no dispute that Hsu performs the
`conditional statement without the "not" and it actually gets up to this branch
`C. There's no dispute that Hsu, yes, it does receive blocks, it does make a
`determination whether or not to compress, and when it decides to compress,
`it goes up to the C branch and it compresses the block and it outputs that
`compressed block. So there's no dispute there.
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`Case IPR2017-00557
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`
`What they point to is, like I said, with a particular one or more of
`several encoders. The problem is that when you make a determination not to
`compress, and here on slide 46, the plain meaning of the claim requires only
`that a determination is made whether or not to compress. It doesn't require
`that in order to reach branch D when you make a decision not to compress
`that you consider the particular one or more of several encoders. That's
`simply not in the language of branch D. You can see that's simply not there.
`On the other hand, if we look at slide 47, we can see that the
`language "with a particular one or more of several encoders," that actually
`appears in branch C. So that portion, a particular one or more of several
`encoders, is actually associated with the circumstance where you do decide
`to compress. So all the plain and ordinary meaning, the broadest reasonable
`interpretation of claim 16 requires is that you make a determination whether
`or not to compress, and if you do decide to compress, then you need to
`consider the particular one or more of said several encoders.
`But Your Honors, we can go further. And even if we were to
`accept patent owner's argument with respect to the meaning of the claim,
`turning to slide 49, Hsu actually does teach that you consider the actual
`compressors, the actual encoders when you make a decision not to compress.
`On slide 49, we have a portion of page 1104 from Hsu. And on that page, it
`links up explicitly certain metrics that are exploited by algorithms. So the
`frequency of characters is exploited by arithmetic or alphabetic encoding
`algorithms.
`Turning to slide 50, we have a table. This is the table from Hsu
`which explicitly maps, and this is Hsu teaches us that we have data types on
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`Case IPR2017-00557
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`the left hand of the table and redundancy metrics that are listed at the top.
`So in Hsu, for example, if I had a hexadecimal block, I would run the
`metrics, the redundancy metrics on that block and I would pick the highest
`of the redundancy metrics. And if, for example, that was the average run
`length, then I would apply the run-length encoding algorithm. So there's a
`direct linkage between the actual metrics and the algorithms themselves.
`Now, if we turn to slide 51 and 52 and 53, we can see that the
`particular kinds of algorithms, arithmetic encoding, that only appears under
`the column that has the alphabetic distribution metric. And run-length
`encoding appropriately appears under the column that has the average
`run-length metric. And similarly, the Lempel-Ziv encoding algorithm only
`appears under the string repetition ratio metric.
`JUDGE BOUDREAU: Mr. Lynn, if I could just interrupt for a
`second, in making a determination to compress using run-length encoding --
`JUDGE CHUNG: Judge Boudreau, we are having a hard time
`hearing you.
`JUDGE BOUDREAU: Is this any better?
`JUDGE CHUNG: A little bit.
`MR. LYNN: I can understand you, Your Honor.
`JUDGE BOUDREAU: In making a determination not to -- I'm
`sorry. In making a determination to encode with run-length encoding, could
`that be considered to be a determination not to encode using arithmetic
`encoding or Lempel-Ziv encoding?
`MR. LYNN: Your Honor, I had not thought of it that way, but yes,
`I think that's correct. If you decide to use run-length encoding, you are
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`Case IPR2017-00557
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`deciding not to use arithmetic encoding. That is a true statement. I hadn't
`thought of that, but, yes.
`JUDGE BOUDREAU: Thank you.
`JUDGE ANDERSON: So while we are interrupting you,
`Mr. Lynn, I'm back at slide 46, I think, where you said that the determination
`whether or not to compress only requires that the determination in 16C be
`made and that the determination not to compress in 16D really is already met
`because it met 16C. Am I understanding you correctly?
`MR. LYNN: I think that may be a way to put it. The point that I
`was trying to make between -- and I think that's between slides 46 and 47. If
`we look at the totality of the claim language, we have a conditional
`statement in B that tells us we can go one of two directions. And what
`patent owner is arguing is that in both, for both branches, in order to end up
`in the C branch, you have to consider the particular one or more of several
`encoders. They are also arguing that in order to get down to the D branch
`that is deciding not to compress, that you also have to consider the particular
`one or more of several encoders. But in actuality, the consideration of
`whether you are going to use the particular one or more of several encoders,
`that is something that appears only up in that C branch. So we are making
`the distinction that reading the claim as a whole, it really is talking about you
`make a determination whether to compress or not, and then if you decide to
`compress, it's got to be with one or more of several encoders. Did that
`answer your question?
`JUDGE ANDERSON: Yeah, I think so. Now, correct me if I'm
`wrong, but the panel has raised the question as to whether or not this
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`argument was made in response to the argument that patent owner made in
`its response. I'm assuming that that is the case.
`MR. LYNN: We did explicitly make this argument in the reply.
`And I think we have the cited pages there on slide 44. I believe it's the reply
`pages 11 to 12 where we bring it out, yes, Your Honor.
`JUDGE ANDERSON: So the procedural situation here is that you
`are arguing something in response to an issue raised in the response. Fair
`enough?
`MR. LYNN: Yeah, that's a fair statement, Your Honor.
`JUDGE ANDERSON: All right. Go ahead.
`MR. LYNN: I know I'm running up on my ten-minute rebuttal
`time. We do want to point out, and I think on slide --
`JUDGE CHUNG: Two minutes.
`MR. LYNN: We were up to maybe slide 54 or 55, the point is on
`slide 53, for example, we can see that there is a linkage between the metrics
`and the actual encoding algorithms. And on slide 54, what patent owner
`points to is the fact that Hsu says it normalizes the metrics, it performs this
`redundancy metric calculation, and it normalizes the metrics and says, you
`know, sometimes compression just isn't going to work. So they set a
`threshold at 2.5, and if none of the metrics are above 2.5, it just wipes its
`hands and says I'm going to move on. So it decides that it's not going to
`compress that block with any of the metrics. And that's what the patent
`owner is pointing to, to say that there is no relation, for example, between
`the decision not to compress and the actual encoders.
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`Case IPR2017-00557
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`This is on slide 55. Even Dr. Zeger, that's patent owner's expert,
`he admitted and acknowledged that there is a correlation and a relation
`between the metrics and the algorithms. And on slide 56 really sums it up,
`the fact is that when Hsu's metrics, when those redundancy metrics are all
`below a certain threshold and the block is considered uncompressible, it's
`considered uncompressible with the algorithms that are available, with these
`particular algorithms. It's not a universal determination that nothing could
`ever compress these things. It's just these are the algorithms that are
`available and the metrics that resulted from the calculation fell below the
`threshold.
`Now, Your Honors, I would like to touch on -- I have moved on to
`slide 58 -- the arguments with respect to Franaszek and Hsu. This is the
`combination of Franaszek and Hsu. On slide 59, I'll point out that this only
`relates to ground number 9. It doesn't relate to any of the other grounds. I
`don't have a whole lot of time. On slide 60, I'll just point out that this is the
`claim language that's at issue. There is no dispute that A, B and C are met
`by Franaszek. The only thing that Franaszek -- patent owner argues that
`Franaszek doesn't do is explicitly say that when I have decided that I'm not
`going to compress a block, that I'll have some sort of indicator, some sort of
`null data compression-type descriptor. Franaszek is silent on that.
`JUDGE CHUNG: Counselor, your 20 minutes is up. As of now,
`you are going to be eating into your rebuttal time.
`MR. LYNN: Thank you, Your Honor. I'll move quickly. I will go
`ahead to slide 66. Your Honors, although Franaszek doesn't say explicitly
`that when I decide not to compress a block, that I will have some sort of
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`Case IPR2017-00557
`Patent 7,358,867 B2
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`indicator, some sort of designator that says this block is uncompressed. It
`does say that each block of data includes a coding identifier which is
`indicative of the method or mechanism used to compress the block.
`And if we turn back to slide 63, Franaszek explicitly says that you
`add a coding identifier to compressed blocks. The entire argument, the
`argument that we are saying is that it would have been obvious. And that's
`the question, would it have been obvious to add for uncompressed blocks to
`have some sort of descriptor?
`And if we look at slide 64, there's no requirement that the CMD
`area, there's nothing in the claims that requires this CMD area. The only
`question is would it have been obvious in view of Franaszek to have a null
`data compression-type descriptor? And we think that it would. We think
`our pages have shown that.
`JUDGE ANDERSON: Are you relying on Hsu -- I gathered that
`you were relying on Hsu in combination with Franaszek to show the null
`compression identifier.
`MR. LYNN: Your Honors, yes, that is true. On slide 68 we point
`to in particular what flag we are pointing to out of Hsu. And the flags that
`we are pointing to are the no compression code or the skip instruction. So
`Hsu explicitly says that when you decide not to compress a data block, you
`sure need to track it. For your decoder, you need to know if you are going to
`decompress a string of compressed and uncompressed data, you need to
`know which is compressed and which is uncompressed. Hsu explicitly
`teaches that. So we are just saying it would be obvious to include those
`same types of codes in Franaszek.
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`Case IPR2017-00557
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`JUDGE ANDERSON: It seems like the patent owner's argument
`is that because Franaszek doesn't deal expressly with null compression
`descriptors, that the compression method descriptors have no express
`statement about that, that a person of ordinary skill in the art would not be
`motivated to combine the two.
`MR. LYNN: Your Honors, I think you are right that the patent
`owner focuses solely on the concept that Franaszek does have an
`embodiment where it's silent as to whether you put a CMD block on an
`uncompressed block. It only says that you put a CMD block on a
`compressed block. But it doesn't address the fact that the claim itself simply
`says I need to provide an output, a null data description, a null data
`compression-type descriptor. Did that answer your question?
`JUDGE ANDERSON: Well, somewhat. I don't want to eat up
`any more of your time, but that's fine.
`MR. LYNN: Your Honor --
`JUDGE ANDERSON: I was going to ask the panel, we are going
`to give you a little bit of extra time. You have tried to cover an awful lot
`with not much time. So let me just push a little bit further on that one. And
`I kind of need to regroup my train of thought here, but what is your position
`that the CMD area would, in fact, be modifiable with a null compression
`descriptor and what's the rationale for that?
`MR. LYNN: I think the rationale is best shown on slide 67. And
`here we are citing to Dr. Creusere's declaration. And what Dr. Creusere tells
`us is that -- this is his reasoning, his logic. Some data blocks are stored in
`the second memory in uncompressed format and therefore, the decompressor
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`Case IPR2017-00557
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`of Franaszek has to have or must have a way of differentiating those blocks
`from the compressed blocks. So it was Dr. Creusere's position, and we think
`it's accurate, that using the CMD area or a CMD area of a data block as
`taught by Franaszek to indicate that a data block was stored in uncompressed
`format would have been an obvious choice to a person of ordinary skill in
`the art. It's as simple as adding a CMD block to any of the uncompressed
`blocks that are being exported and stored in memory.
`JUDGE ANDERSON: I'm not sure, but hopefully Judge Chung
`kept record of how much additional time you got.
`JUDGE CHUNG: I did.
`JUDGE ANDERSON: Very good. Thank you, Judge Chung.
`With that, Mr. Lynn, do you have anything else you want to say?
`MR. LYNN: Your Honors, I'm happy to answer any questions that
`you have, but I would prefer to save my time for rebuttal, if that's all right.
`JUDGE ANDERSON: That's fine. So Mr. Noroozi, your time is
`beginning now, and you will have, if you choose to use it, how much
`additional time, Judge Chung, did we give --
`JUDGE CHUNG: I counted five minutes extra that we gave to
`petitioner. So in fairness, counselor for patent owner is permitted
`35 minutes of time to present arguments.
`JUDGE ANDERSON: Okay. Very good. With that, you may
`proceed, Mr. Noroozi.
`MR. NOROOZI: Thank you, Your Honors. I would like to just
`begin where we left off with petitioner's arguments, and that is with respect
`to Franaszek and the idea of the CMD area in Hsu. The question was asked
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`Case IPR2017-00557
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`whether it was essentially petitioner's modification theory to add a CMD
`area to Franaszek and what the rationale for that was. And indeed, petitioner
`represented that they have an argument on this, but they don't. They don't
`have an argument on it. The argument that they make comes from
`Dr. Creusere's deposition where he brings it up for the first time that
`someone would have -- where we talked about whether a person of skill in
`the art would have been motivated to add a CMD area to the uncompressed
`blocks in Franaszek. In fact, if we look at our slide 40, Dr. Creusere was
`asked whether he has an opinion in his declaration that a person of skill in
`the art would have added a CMD area to the uncompressed blocks in
`Franaszek, and he said that he does not have that opinion. That theory does
`not exist. It was not in the petition. It was not instituted on. It's not a part
`of this proceeding.
`And that's the fundamental problem that petitioner has with its
`Franaszek and Hsu theory. Petitioner's theory has clearly become that they
`want to create a CMD area in the uncompressed blocks of Franaszek where a
`CMD area does not exist. But they don't have any statement whatsoever in
`their petition nor any support from their expert in his original declaration
`that a person of skill i

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