`571.272.7822
`
`
`Paper No. 9
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` Filed: July 28, 2017
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`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`DISH NETWORK CORPORATION and DISH NETWORK L.L.C.,
`Petitioner,
`
`v.
`
`CUSTOMEDIA TECHNOLOGIES, L.L.C.,
`Patent Owner.
`____________
`
`Case IPR2017-00717
`Patent 9,053,494 B2
`____________
`
`
`
`Before MEREDITH C. PETRAVICK, KALYAN K. DESHPANDE, and
`KERRY BEGLEY, Administrative Patent Judges.
`
`BEGLEY, Administrative Patent Judge.
`
`
`
`
`
`DECISION
`Institution of Inter Partes Review
`37 C.F.R. § 42.108
`
`
`
`DISH Network Corporation and DISH Network L.L.C. (collectively,
`“Petitioner”) filed a Petition requesting inter partes review of claims 1–7,
`16–19, 23–25, 27, and 28 of U.S. Patent No. 9,053,494 B2 (Ex. 1003,
`
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`“’494 patent”). Paper 1 (“Pet.”). Customedia Technologies, L.L.C. (“Patent
`Owner”) filed a Preliminary Response. Paper 7 (“Prelim. Resp.”).1
`Pursuant to 35 U.S.C. § 314(a), an inter partes review may not be
`instituted unless “the information presented in the petition . . . and any
`response . . . shows that there is a reasonable likelihood that the petitioner
`would prevail with respect to at least 1 of the claims challenged in the
`petition.” For the reasons given below, we determine that Petitioner has
`demonstrated a reasonable likelihood that it would prevail with respect to
`claims 1–7, 19, 23–25, 27, and 28, but not claims 16–18. Accordingly, we
`institute an inter partes review of claims 1–7, 19, 23–25, 27, and 28.
`I. BACKGROUND
`A. RELATED MATTERS
`Petitioner represents that Patent Owner has asserted the ’494 patent
`
`against Petitioner in an ongoing action before the U.S. District Court for the
`Eastern District of Texas (“District Court”), Case No. 2:16-cv-00129
`(“District Court Case”). Pet. 1; see Paper 4, 2. In addition, before the
`Office, the ’494 patent is the subject of IPR2017-00724 and CBM2017-
`00032, which were also filed by Petitioner. Paper 4, 2; see Pet. 1–2.
`B. THE ’494 PATENT
`1. Disclosure
`The ’494 patent discloses a digital data management system, one
`
`object of which is to “[r]ent/lease storage space in [a] user[’]s Data Box to
`personalize and target advertising to the individual preferences of the user.”
`
`1 The Preliminary Response contains numerous passages reproduced from
`other documents as what appears to be images, with a variety of fonts and
`spacing. E.g., Prelim. Resp. 6, 9–12, 24. The parties are cautioned that all
`filings must comply with 37 C.F.R. § 42.6(a)(2)(ii)–(iii) and strict attention
`should be given to the word count certification of 37 C.F.R. § 42.24(a), (d).
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`Patent 9,053,494 B2
`Ex. 1003, 4:5–10; see id. at 3:30–4:12. The disclosed system has a local
`host Data Management System and Audio/Video Processor Recorder-player
`(“VPR/DMS”) unit, which allows for program reception, recording,
`processing, download, and playback, as well as a remote Account-
`Transaction Server (“ATS”), which stores and provides programming
`information for use with the VPR/DMS unit. Id. at 4:13–20, 21:42–44.
`
`The ’494 patent discusses advertising operations of the system in
`which broadcaster content provider 41 transmits advertising data to
`VPR/DMS 30, and the advertising data is recorded on built-in, non-movable
`storage device 14. Id. at 30:50–31:15. Figure 16 is reproduced below.
`
`
`Figure 16 “illustrates the communication pathways between advertisers 71, a
`broadcaster content provider 41, and . . . VPR/DMS 30.” Id. at 30:60–63.
`The ’494 patent explains that programmable “[a]dvertising ‘sections’
`or ‘spaces’ or ‘data boxes’” within VPR/DMS 30 “may be reserved, rented,
`leased or purchased from [an] end user, content providers, broadcasters,
`cable/satellite distributor, or other data communications companies
`administering the data products and services.” Id. at 31:44–64. For
`example, a cable distributor may provide a customer with a set-top box
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`containing VPR/DMS 30 with built-in non-movable storage device 14,
`which has “certain areas that are reserved and controlled by the cable
`company” and that can be sold or leased to advertisers. Id. at 31:64–32:6.
`Advertisements that are customer specific, based on customer
`selection or activity history monitoring, can be delivered to the advertising
`sections of VPR/DMS 30 and selectively recorded onto the “designated
`advertising ‘sections.’” Id. at 32:7–15; see id. at 31:49–60. According to
`the ’494 patent, this provides benefits for both the advertiser and customer,
`including “maximizing content, establishing customer qualifications, and
`ultimately producing more cost efficient advertising.” Id. at 32:17–21.
`2. Priority
`The ’494 patent claims priority as a continuation of Application
`No. 10/848,238 (now U.S. Patent No. 8,719,090 (“’090 patent”)), which was
`filed on May 18, 2004 as a continuation of Application No. 09/383,994
`(“’994 application”), filed on August 26, 1999. Ex. 1003, [63]. The
`’994 application, in turn, claims priority as a continuation-in-part of
`Application No. 08/873,584 (“’584 application”), filed on June 12, 1997. Id.
`
`Petitioner asserts that the challenged claims of the ’494 patent are not
`entitled to priority to the ’584 application, because it does not provide
`sufficient support for the advertising-related elements of the challenged
`claims. Pet. 8–10; see 35 U.S.C. § 120. Petitioner argues that “[e]ach and
`every disclosure of ‘advertising’ and any variation thereof was added in [the
`’994 application].” Pet. 9. Thus, according to Petitioner, the challenged
`claims of the ’494 patent are entitled to a priority date no earlier than the
`filing date of the ’994 application, August 26, 1999. Id. at 10. In the
`Preliminary Response, Patent Owner does not dispute Petitioner’s assertion.
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`On this record, we agree with Petitioner that the challenged claims of
`the ’494 patent are not entitled to priority to the ’584 application and,
`therefore, have an effective filing date no earlier than August 26, 1999. We
`note that the asserted prior art references would remain prior art even if the
`’494 patent were entitled to priority to the ’584 application. See Ex. 1009,
`[22], [45]; Ex. 1010, [45]; Pet. 3; 35 U.S.C. § 102(a), (b), (e).
`C. ILLUSTRATIVE CLAIM
`Of the challenged claims of the ’494 patent, claims 1 and 19 are
`independent. Claim 1, reproduced below, is illustrative:
`1. A system for providing targeted advertising to a multimedia
`content end user, comprising:
`at least one storage device, wherein at least one of said at least
`one storage device comprises at least one addressable and
`reserved storage space for storing digital advertising data;
`at least one processor; and
`software implemented by said at least one processor wherein
`said software comprises a program to reserve said at least
`one addressable storage space and wherein said software
`further comprises a program to select particular advertising
`data suitable for targeting to at least one end user based
`upon predefined criteria data, wherein particular
`advertising data is stored in said at least one addressable
`and reserved storage space and is accessible to the at least
`one end user.
`
`D. EVIDENCE OF RECORD
`The Petition relies upon the following asserted prior art references:
`U.S. Patent No. 5,774,170 (filed Dec. 13, 1994) (issued June 30, 1998)
`(Ex. 1009, “Hite”); and
`U.S. Patent No. 4,607,346 (issued Aug. 19, 1986) (Ex. 1010, “Hill”).
`Petitioner supports its contentions with the Declaration of Kevin Negus,
`Ph.D. (Ex. 1008). Patent Owner relies on the Declaration of Jay P. Kesan,
`Ph.D. (Ex. 2001).
`
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`E. ASSERTED GROUNDS OF UNPATENTABILITY
`Petitioner asserts the following grounds of unpatentability. Pet. 3.
`Challenged Claims
`Basis Reference(s)
`1–7, 16–19, 23–25, 27, and 28 § 1022 Hite
`4, 16, and 18
`§ 103 Hite
`1–7, 16–19, 23–25, 27, and 28 § 103 Hite and Hill
`
`II. ANALYSIS
`A. CLAIM CONSTRUCTION
`The Board interprets claim terms of an unexpired patent using the
`“broadest reasonable construction in light of the specification of the patent.”
`37 C.F.R. § 42.100(b); Cuozzo Speed Techs., LLC v. Lee, 136 S. Ct. 2131,
`2144–46 (2016). We presume a claim term carries its “ordinary and
`customary meaning,” which is the meaning “the term would have to a person
`of ordinary skill in the art” at the time of the invention. In re Translogic
`Tech., Inc., 504 F.3d 1249, 1257 (Fed. Cir. 2007) (citation omitted).
`A claim term will be interpreted more narrowly than its ordinary and
`customary meaning when: (1) the patentee “acts as [its] own lexicographer”
`or (2) the “patentee disavows the full scope of [the] term either in the
`specification or during prosecution.” Aventis Pharma S.A. v. Hospira, Inc.,
`675 F.3d 1324, 1330 (Fed. Cir. 2012). To act as lexicographer, the patentee
`“must clearly set forth a definition” of the term “other than its plain and
`ordinary meaning.” Id. (citations and quotations omitted). Similarly, to
`disavow claim scope, “the specification or prosecution history [must] make
`clear that the invention does not include a particular feature.” GE Lighting
`
`
`2 The ’494 patent has an effective filing date before the effective date of the
`sections of the Leahy-Smith America Invents Act (“AIA”), Pub. L. No. 112–
`29 (2011), that revised 35 U.S.C. §§ 102 and 103. See supra § I.B.2. Thus,
`we refer to the pre-AIA versions of §§ 102 and 103 throughout this decision.
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`Sols., LLC v. AgiLight, Inc., 750 F.3d 1304, 1309 (Fed. Cir. 2014) (citation,
`quotation, and alterations omitted).
`1. “addressable and reserved storage space for storing [digital / the
`particular] advertising data” (Claims 1 and 19)
`Independent claim 1 of the ’494 patent recites an “addressable and
`reserved storage space for storing digital advertising data.” Ex. 1003,
`46:16–18. Independent claim 19 features a nearly identical limitation, the
`only difference being that claim 19 replaces “digital advertising data” with
`“the particular advertising data.” Id. at 46:16–18, 48:28–29.
`Petitioner proposes that the broadest reasonable construction of these
`limitations is an “individually controlled data storage section set apart just
`for storing advertising data.” Pet. 14. According to Petitioner, its proposed
`construction is consistent with and supported by the specification of the
`’494 patent as well as statements made by the applicant and the examiner
`during prosecution of the ’090 patent, of which the ’494 patent is a
`continuation. Id. at 14–16; see Ex. 1003, [63]; Ex. 1008 ¶¶ 144–146.
`Patent Owner, however, proposes that the broadest reasonable
`construction is an “individually controlled advertising data storage section
`for the particular advertising data set apart from other data storage sections
`that are on the same data storage and that store data other than the particular
`advertising data.” Prelim. Resp. 5–6 (emphasis omitted). According to
`Patent Owner, Petitioner’s proposal differs from Patent Owner’s proposal in
`that it does not (1) “describe what an[ ]individually controlled data storage
`section is set apart from” and (2) “specify that what the advertising section is
`set apart from is part of the same data storage.” Id. at 13.
`Patent Owner argues that Petitioner’s proposed construction is
`unreasonably broad in light of the specification of the ’494 patent and the
`
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`prosecution history of the related ’090 patent. Id. at 5–17. Patent Owner
`contends that its proposed construction is the only reasonable interpretation
`“[i]n light of the description of the[] terms in the specification,” given that
`the specification describes, and depicts in Figure 16, partitioning the same
`data storage device into multiple sections that are reserved for advertising
`data and non-advertising data. Id. at 8–10, 14–15. Patent Owner also argues
`that statements the examiner made during prosecution of the ’090 patent
`support its proffered construction. Id. at 11–13, 15–17.
`After the Petition was filed, the District Court issued an order in the
`District Court Case, which adopted the following constructions for the
`instant limitations of claims 1 and 19 under the claim construction standard
`articulated in Phillips v. AWH Corp., 415 F.3d 1303 (Fed. Cir. 2005): “data
`storage section set aside just for storing digital advertising data” (claim 1)
`and “data storage section set aside just for storing the particular advertising
`data” (claim 19). Ex. 1027, 19; see id. at 6, 9–18; Power Integrations, Inc.
`v. Lee, 797 F.3d 1318, 1326 (Fed. Cir. 2015) (explaining that the Board
`should consider and address a “district court’s previous interpretation” of a
`claim term). The District Court’s constructions are similar to the
`construction that Petitioner offers in this proceeding.
`For the reasons given below, we are persuaded that Petitioner’s
`proposed construction, with minor exceptions discussed in our analysis
`below that are reflected in the District Court’s constructions, is the broadest
`reasonable construction in light of the specification of the ’494 patent.
`Beginning with the claims, the plain language of claims 1 and 19
`supports and is consistent with Petitioner’s proposal that the claimed storage
`space is “set apart just for storing advertising data.” The limitations of
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`claims 1 and 19 specifically require that the storage space is “reserved” and
`“for storing . . . advertising data.” Ex. 1003, 46:16–18, 48:28–29.
`The language of claims 1 and 19, however, diverges from Petitioner’s
`proposed construction in two respects—each of which is reflected in the
`District Court’s adopted constructions. First, Petitioner proposes that the
`storage space in each claim be “set apart just for storing advertising data.”
`Pet. 14 (emphasis added). Yet the plain language of claim 1 requires that the
`advertising data be “digital advertising data.” Ex. 1003, 46:16–18 (emphasis
`added). Claim 19 likewise specifies that the advertising data be “the
`particular advertising data.” Id. at 48:28–29 (emphasis added).
`Accordingly, our interpretations of claims 1 and 19 differ to incorporate
`these particular requirements and distinctions in the claim language.
`Second, Petitioner’s proposed construction, like Patent Owner’s
`proposal, features the language “individually controlled.” Pet. 14; Prelim.
`Resp. 5. The claims do not include this or corresponding language. Neither
`party provides adequate explanation or evidence, whether intrinsic or
`extrinsic to the ’494 patent, to support including “individually controlled” in
`the interpretation of the instant limitations. In contrast, independent
`claims 1, 81, and 97 of the related ’090 patent feature similar limitations that
`include “individually controlled” (e.g., “individually controlled and reserved
`advertising data storage section adapted specifically for storing the
`specifically identified advertising data”)—which counsels against including
`this language in the interpretation of the instant limitations. Ex. 1001,
`46:24–26 (emphasis added), 52:67–53:2, 55:10–14; Clare v. Chrysler Group
`LLC, 819 F.3d 1323, 1330 (Fed. Cir. 2016) (explaining that claim
`differentiation applies across related patents but “is not as strong” as within
`the same patent); Curtiss-Wright Flow Control v. Velan, Inc., 438 F.3d
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`1374, 1381 (Fed. Cir. 2006) (“[C]laim differentiation takes on relevance in
`the context of a claim construction that would render additional, or different,
`language in another independent claim superfluous . . . .”).
`In addition, the claim language does not support Patent Owner’s
`proposed construction. The plain language of claims 1 and 19 does not
`require, or even imply, that the “addressable and reserved storage space” be
`set apart from other data storage sections that are on the same data storage
`and that store data other than the particular advertising data, as Patent
`Owner’s proposed construction requires. Rather, claims 1 and 19 are silent
`as to whether the recited “addressable and reserved storage space” is a
`separate device or is a portion of a storage device that stores other data.
`Adding Patent Owner’s proffered requirements that the recited
`“storage space” be set apart from other storage sections that are on the same
`data storage and that store non-advertising data would improperly import
`extraneous limitations and read limitations from the specification into the
`claims. “It is improper for a court to add extraneous limitations to a claim,
`that is, limitations added wholly apart from any need to interpret what the
`patentee meant by particular words or phrases in the claim.” Hoganas AB v.
`Dresser Indus., Inc., 9 F.3d 948, 950 (Fed. Cir. 1993) (citations and
`quotations omitted). Likewise, “[i]t is improper to read limitations from a
`preferred embodiment described in the specification . . . into the claims
`absent a clear indication in the intrinsic record that the patentee intended the
`claims to be so limited.” GE Lighting, 750 F.3d at 1309 (citation omitted).
`Although, as Patent Owner points out, Figure 16 depicts and the
`corresponding discussion of an embodiment in the specification discloses
`“advertising ‘sections’” as part of the same non-movable storage device 14,
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`we see nothing in the specification that supports limiting the claimed
`invention to these particular features. See Ex. 1003, 31:44–32:15, Fig. 16.
`The written description, however, does provide additional support for
`Petitioner’s proposed construction, given that several passages support the
`“addressable and reserved storage space” being specifically designated and
`set aside for storing certain advertising data. The specification discusses
`“[p]rogrammable designation of advertising ‘sections’” and the “designated
`advertising ‘sections’” being “reserved, rented, leased or purchased.” Id.
`at 31:44–52, 31:60–32:15. The specification further discloses an example in
`which storage areas are “reserved and controlled by the cable company,” and
`“are available for commercial sales or leasing to others.” Id. at 31:64–32:6.
`In addition, the specification refers to delivering “customer specific”
`advertisements to, and recording them on, the advertising sections. Id.
`at 31:49–52, 32:7–15. The specification also discloses that a “user may
`designate a partition in his individual Data Box to hold only advertising
`information[,] which has been processed and customized according to his
`unique user suitability criteria.” Id. at 39:10–17.
`The specification also supports interpreting the recited “storage space”
`to mean a “storage section,” as both Petitioner and Patent Owner propose
`and as reflected in the District Court’s constructions. Pet. 14; Prelim.
`Resp. 17; Ex. 1027, 19. As Patent Owner points out, the specification
`repeatedly refers to the designated advertising sections as “‘sections’, data
`boxes’ or spaces.’” Ex. 1003, 31:45–46, 31:60–61; Prelim. Resp. 6.
`Moreover, we agree with Petitioner that the prosecution history of the
`related ’090 patent supports Petitioner’s proposed construction and disagree
`with Patent Owner that it supports Patent Owner’s narrower proposal.
`Pet. 14–16 (citing Ex. 1002, 302, 365–66, 432–33); Prelim. Resp. 11–13,
`11
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`15–17 (citing Ex. 1002, 365–66, 432–33). The cited portions of the
`’090 patent prosecution history, when read in context, support Petitioner’s
`proposal, as they address or relate to the patentee’s statements concerning
`the reserved storage section or space being just for storing advertising data.
`See Ex. 1002, 302, 365–66, 432–33. For example, in addressing a limitation
`similar to the “addressable and reserved storage space” of claims 1 and 19,
`the patentee represented that “to ‘reserve’ a memory space for advertising
`data would mean to a person skilled in the art that such memory space is
`kept for only advertising data and only for advertising data for which the
`specific storage space is ‘reserved,’” and that the limitation requires at least
`one storage section be “reserve[d]” “just for storing advertising data” or, in
`other words, “structurally set aside for advertising data.” Id. at 2, 302, 351,
`364–67 (emphases, other than first, added). The cited portions, however, do
`not support sufficiently Patent Owner’s proposed construction, because none
`of the cited statements of the patentee, or the examiner, address or represent
`that the claimed storage section or space is limited to a portion of a storage
`device set apart from other portions of the same device that store
`non-advertising data. See id. at 302, 365, 366, 432–33.
`Accordingly, on the present record, we determine that the broadest
`reasonable interpretation, in light of the ’494 patent specification, of
`claim 1’s limitation “addressable and reserved storage space for storing
`digital advertising data” is “data storage section set apart just for storing
`digital advertising data.” Moreover, the broadest reasonable interpretation
`of claim 19’s limitation “addressable and reserved storage space for storing
`the particular advertising data” is “data storage section set apart just for
`storing the particular advertising data.” We note that our constructions are
`nearly identical to those adopted in the District Court Case. Ex. 1027, 19
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`(adopting constructions identical to those we adopt other than using the term
`“aside,” rather than “apart”).
`2. “predefined criteria data” (Claims 1, 3, and 19) and “suitability
`criteria data” (Claims 4, 5, 23, and 25)
`Challenged independent claims 1 and 19, as well as dependent
`claim 3, recite “predefined criteria data.” Ex. 1003, 46:25, 46:36–37, 48:25.
`Challenged dependent claims 4, 5, 23, and 25 recite “the suitability criteria
`data.” Id. at 46:41–44, 48:55, 48:61–62. Petitioner raises arguments
`regarding two aspects of the scope and meaning of these terms. Pet. 17–18.
`Patent Owner does not respond to Petitioner’s assertions.
`First, Petitioner argues that “the suitability criteria data” in dependent
`claims 4, 5, 23, and 25 “lacks antecedent basis other than to relate back to
`‘predefined criteria data’” in independent claims 1 and 19. Id. at 17.
`Therefore, according to Petitioner, “suitability criteria data” should be given
`the same interpretation as “predefined criteria data.” Id.; Ex. 1008 ¶ 155.
`Claims 4 and 5 each depend directly from independent claim 1,
`whereas claims 23 and 25 each depend directly from independent claim 19.
`Ex. 1003, 46:41–44, 48:47–55, 48:61–62. The only “criteria data” in
`independent claims 1 and 19 is “predefined criteria data.” Id. at 46:25,
`48:25. Accordingly, based on the record before us, we are persuaded that a
`person of ordinary skill in the art, upon reviewing the ’494 patent, would
`have understood “the suitability criteria data” recited in claims 4, 5, 23, and
`25 to refer to “predefined criteria data” in their respective independent
`claim. See id. at 46:25, 46:41–44, 48:25, 48:47–55, 48:61–62 (emphasis
`added); NTP, Inc. v. Research in Motion, Ltd., 418 F.3d 1282, 1306 (Fed.
`Circ. 2005), abrogated on other grounds by Zoltek Corp. v. United States,
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`672 F.3d 1309, 1323 (Fed. Cir. 2012) (explaining that a claim term using the
`definite article “the” requires antecedent basis).
`Second, Petitioner argues the broadest reasonable interpretation of
`both “predefined criteria data” and “suitability criteria data” is “one or more
`of total number of customers, customer profile data, customer demographics,
`program schedules, product showcase schedules, available advertising
`formats, available advertising schedules, advertising rates, ad placement
`timing, or cost effectiveness.” Pet. 18. As support, Petitioner asserts that
`“[d]uring prosecution, the [Office] identified that the term ‘predefined
`criteria data’ replaced the ten ‘factors’ originally listed in claim 83 of the
`related ’090 [p]atent,” i.e., the factors in Petitioner’s proposed construction.
`Id. at 17 (citing Ex. 1001, 53:19–23; Ex. 1004, 207); see Ex. 1008 ¶¶ 118,
`153; Ex. 1001, 46:48–56 (claim 5), 53:15–23 (claim 83).
`The cited portion of the prosecution history of the ’494 patent does
`not adequately support Petitioner’s proffered construction. Petitioner cites
`to the statement of reasons for allowance in which the examiner explained
`that the ’494 patent claims differ only in obvious ways from the ’090 patent
`claims and would have been subject to an obviousness-type double patenting
`rejection but for the filing of a terminal disclaimer. Ex. 1004, 207. The
`examiner continues: “[f]or example, instant claim 110 is claim 83 in the
`[’]090 patent much simplified with . . . the ten ‘factors’ in claim 83 replaced
`with the genus ‘predefined criteria data.’” Id. We do not agree with
`Petitioner’s implication that this statement narrows or limits the meaning of
`“predefined” and “suitability criteria data” in the ’494 patent claims to the
`factors specifically enumerated in dependent claims of a different, though
`related, patent. Petitioner provides no other evidence to support its proposed
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`construction. Thus, Petitioner has not shown that its proposed construction
`is the broadest reasonable construction of the claim terms.
`Having reviewed the ’494 patent and the record before us, we
`determine that, beyond addressing the issues raised by Petitioner above, we
`need not provide an express construction of the claim terms “predefined
`criteria data” and “suitability criteria data” for purposes of this decision.
`3. Other Claim Terms
`On this record, we determine that no other claim terms require an
`express construction to resolve the issues presented by the patentability
`challenges. See Wellman, Inc. v. Eastman Chem. Co., 642 F.3d 1355, 1361
`(Fed. Cir. 2011) ((“[C]laim terms need only be construed ‘to the extent
`necessary to resolve the controversy.’”) (citation omitted)).
`B. ALLEGED ANTICIPATION BY HITE
`Petitioner argues, and Patent Owner disputes, that Hite anticipates
`claims 1–7, 16–19, 23–25, 27, and 28. Pet. 18–59; Prelim. Resp. 20–28.
`1. Principles of Law
`Anticipation under 35 U.S.C. § 102 requires that “each claim
`element,” and “the claimed arrangement or combination of those elements,”
`“be disclosed, either expressly or inherently, in a single prior art reference.”
`Therasense, Inc. v. Becton, Dickinson & Co., 593 F.3d 1325, 1332–33 (Fed.
`Cir. 2010) (citation omitted). Inherent disclosure is established where the
`reference “must necessarily include” an “unstated limitation.” Id. (citation
`and emphasis omitted).
`
`2. Overview of Hite
`Hite discloses a system that delivers and displays television and radio
`commercials targeted to individual viewers. Ex. 1009, [57], 1:7–10, 5:28–
`37. The disclosed system is intended to provide “viewers with
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`advertisements which are matched to [their] interests and needs” and
`“advertisers with less waste and greater cost effectiveness.” Id. at 3:20–35.
`In Hite’s system, “[e]ach commercial is analyzed as to its nature and
`focus” and a Commercial Identifier (“CID”) code “is appended.” Id.
`at 1:40–45. Commercials that can be preempted are imbedded with a CID
`code indicating “under what circumstances a more suitable commercial may
`be substituted.” Id. at 3:45–64. Additional codes, such as a context code
`and viewer reaction codes, can be “appended to the CID code to provide
`additional capabilities.” Id. at 4:19–24; see id. at 4:25–5:16. Likewise, a set
`of CID codes is assigned to a viewer, based on the viewer’s needs and
`wants. Id. at 1:7–10, 3:65–4:2, 8:18–22. The display site can store and
`process CID codes for multiple viewers so that when the viewer is identified,
`commercials appropriate to that viewer are presented. Id. at 8:39–44.
`Hite discloses that its system includes Ad Administration Facility
`(“AAF”) 100, which analyzes customers, commercials, and programs to
`construct CID codes. Id. at 8:64–9:1. The commercials and CID codes are
`conveyed to Ad Transmission Facility (“ATF”) 200, which combines them
`with audio/video programming and conveys the combined programming to
`Media Origination Facility (“MOF”) 300. Id. at 9:16–20, Fig. 1. Next, the
`package of programming, commercials, and CID codes is conveyed to
`display site 400. Id. at 9:32–38, 13:58–66, Fig. 1. Display site 400 includes
`commercial processor 438 and optional video storage device 456, from
`which “[c]ommercial [p]rocessor 438 can cause commercial signals to be
`stored or played back.” Id. at 14:12–13, 14:28–32, 14:42–46, Fig. 5.
`
`According to Hite, “[t]he storage devices used” in its system “can be
`any form which is economical at the time of construction.” Id. at 10:44–46,
`
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`16
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`IPR2017-00717
`Patent 9,053,494 B2
`12:6–8. Examples “include magnetic, optical, and semiconductor
`implemented in tapes, disks, and chips.” Id. at 10:46–49, 12:8–11.
`
`In one embodiment of Hite’s system, “an individually addressable
`digital recording device (RD) with a unique address is installed at the
`display site in the television receiver, VCR, display device set-top[ ]box or
`modular decoder associated with the video provider.” Id. at 6:60–66. “CID
`codes chosen for a particular display site (consumer) are transmitted to and
`stored in” the RD at the display site. Id. at 6:66–7:1; see id. at 4:1–2, 5:40–
`48, 6:60–66, 7:34–37. Subsequently, commercials, each attached with
`“codes indicating the conditions and rules” required for its display, are
`“transmitted to the display site prior to the time of their intended use.” Id.
`at 7:1–11, 7:36–38. The CID codes and display rules are stored in an Ad
`Queue in the commercial processor. Id. at 7:12–14.
`Commercial processor 438 at the display site, which “is programmed
`to find and analyze the CID codes in each commercial,” compares the codes
`attached to the commercials with the previously stored CID codes for the
`consumer. Id. at 4:3–15, 7:7–10, 7:24, 7:38–42. The commercials with CID
`codes that match the stored CID codes are “selected” and “stored in the
`storage at the display site.” Id. at 7:11–12, 7:38–42. Then, during a break in
`a broadcast program, commercial processor 438 looks for CID codes in
`incoming commercials. Id. at 7:24–26. If there is a CID code, the processor
`applies the display rules for the stored commercials and substitutes the
`default, incoming commercials with stored commercials. Id. at 7:24–51.
`
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`
`3. Independent Claims 1 and 19
`a. “addressable and reserved storage space for storing digital”
`or “the particular advertising data” (Claims 1 and 19)
`Petitioner argues that Hite’s “individually addressable digital
`recording device (RD) with a unique address or Video Storage Device”
`constitutes the “addressable and reserved storage space for storing digital” or
`“the particular advertising data” recited in claims 1 and 19 of the
`’494 patent. Pet. 19–21, 51. According to Petitioner and Petitioner’s
`declarant, Dr. Kevin Negus, Hite meets the claim language, given that Hite
`“discloses that digitized commercials may be stored in the storage device
`that is the ‘individually addressable digital recording device (RD) with a
`unique address’ or ‘Video Storage Device,’” and “Hite discloses no other
`usage for such memory or storage device at the display site other than
`storing ‘CID codes’ and/or commercials with ‘CID codes.’” Id. at 20–21;
`see Ex. 1008 ¶¶ 417, 419.
`In response, Patent Owner contends that Hite’s RD, which stores CID
`codes, cannot meet the recited “addressable and reserved storage space,”
`because it does not store advertising data, i.e., multimedia data. Prelim.
`Resp. 22–23.3 Patent Owner also arg