`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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`FEDEX CORPORATION,
`Petitioner,
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`v.
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`INTELLECTUAL VENTURES II, LLC,
`Patent Owner.
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`____________
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`Case IPR2017-00741
`Patent 6,633,900 B1
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`____________
`
`Record of Oral Hearing
`Oral Hearing Held: April 26, 2018
`____________
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`Before DAVID C. MCKONE, BARBARA A. PARVIS, and JOHN A.
`HUDALLA, Administrative Patent Judges.
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`Case IPR2017-00741
`Patent 6,633,900 B1
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`APPEARANCES:
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`ON BEHALF OF THE PETITIONER:
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`
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`DANIEL C. TUCKER, ESQUIRE
`Finnegan, Henderson, Farabow, Garrett & Dunner, LLP
`Wilmer Cutler Pickering Hale & Dorr, LLP
`Two Freedom Square
`11955 Freedom Drive
`Reston, VA 21090
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`ON BEHALF OF THE PATENT OWNER:
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`KEVIN MCNISH, ESQUIRE
`ALAN S. KELLMAN, ESQUIRE
`Desmarais, LLP
`230 Park Avenue
`New York, NY 10169
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`
`
`The above-entitled matter came on for hearing on Thursday, April 26,
`2018, at 11:15 a.m., at the U.S. Patent and Trademark Office, Madison
`Building East, 600 Delany Street, Alexandria, Virginia, before Walter
`Murphy, Notary Public.
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`Case IPR2017-00741
`Patent 6,633,900 B1
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`P R O C E E D I N G S
`THE USHER: All rise.
`JUDGE PARVIS: Please be seated. We are here for IPR2017-00741.
`The challenged patent is U.S. patent No. 6,633,900 B1. Petitioner is FedEx
`Corporation. Patent Owner is Intellectual Ventures II, LLC. It's the same
`panel Judge Parvis, Judge McKone who is appearing remotely, and Judge
`Hudalla is here next to me.
`The parties, the same attorneys, so we don't need to redo
`introductions. Again, the guidance for this hearing was provided in the Oral
`Hearing Order of April 2nd, 2018. Again each side will be given 30 minutes
`for oral argument. After this hearing we will have a one hour break for
`lunch, and then after lunch we will conduct the remaining two hearings.
`Again, this hearing is open to the public and a full transcript of it will
`become part of the record. Please remember to speak into the microphone at
`the podium so that all judges can hear you and please speak into the
`microphone information identifying the document that is projected on the
`screen. The remote judge has a copy of the demonstratives but can't actually
`see the screen and anyone reading the transcript will also want to know what
`you're referring to. So anytime counsel for the Petitioner, you may proceed.
`MR. TUCKER: Thank you, Your Honors, and good morning. Daniel
`Tucker on behalf of Petitioner FedEx Corp. I'd like to reserve ten minutes
`for rebuttal.
`The petition in this case demonstrates that claim 1 is obvious over the
`combination of the prior art references Storch and Butler. In fact the Patent
`Owner does not contest that Storch and Butler disclose nearly every element
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`Case IPR2017-00741
`Patent 6,633,900 B1
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`of claim 1. Instead, the Patent Owner makes two arguments in its Patent
`Owner response and those are what I'd like to address today.
`First, the Patent Owner incorrectly argues that the term mobile field
`unit requires a wireless communication capability and second, the Patent
`Owner incorrectly argues that it would not have been obvious to combine
`these two references, Storch and Butler. And so I'd like to start with the
`mobile field unit argument.
`The BRI of mobile field unit does not require wireless and Patent
`Owner's arguments to the contrary are incorporating in from the
`specification limitations into the claim, and so for claim construction we
`should start with the plain language of the claim and we've reproduced claim
`1 on slide 39. Claim 1 does not include the word wireless. It doesn't recite
`wireless in any way, shape or form. It doesn't require a wireless network
`and it doesn't allude at all to wireless communications. This stands in sharp
`contrast to original claim 1 of this application which we produced on slide
`17 that did require a wireless network and that did require that the mobile
`field unit communicates with the wireless network. Original claim 54,
`which is the claim that would issue as claim 1, did not include any of these
`limitations.
`Based on these differences as we show on slide 19, the examiner
`issued a restriction requirement in the case dividing the claims into two
`groups, original claim 1 which requires a wireless communication network
`and original claim 54 which would issue as claim 1 which does not require a
`wireless network.
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`The examiner explained, as we have reproduced in slide 20 which is
`the prosecution history Exhibit 1005 at 197, that the difference between
`these inventions was in fact the existence or lack of requirement of a
`wireless communication network. The examiner stated inventions 1 and 4,
`that is original claim 1 and issued claim 1 are related as a combination and a
`sub-combination. The sub-combination, the one that would issue as claim 1
`has separate utilities such as a method that lacks the following step a) a
`wireless communication network. So the examiner recognized that this
`distinction between the two claims and in response to this requirement, the
`applicants elected the claims that do not require wireless.
`They elected, as we show on slide 21 in response to that requirement
`without traverse to prosecute the claims that do not require a wireless
`network, and so the Patent Owner cannot argue that the mobile field unit in
`these claims requires wireless communications when it gave that up during
`the prosecution of this patent and instead elected the broader set of claims
`that are not limited to wireless. As we mentioned in our reply, the Patent
`Owner doesn't address these powerful parts of the prosecution history and
`instead focuses their attention on the specification, and their argument is that
`the specification consistently describes mobile field unit as including
`wireless communications.
`There is a problem even with that aside from the prosecution history,
`which is that the specification is not unequivocal on this point. As we show
`on slide 22, the specification explains that the mobile field unit may be a
`portable computer, that's the 900 patent column 4, lines 13 through 23. The
`mobile field unit may be the portable computer. Well there's evidence in
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`this case that the portable computer is not necessarily wireless. It is extrinsic
`evidence but it is evidence nonetheless. Multiple dictionary definitions that
`make clear that a portable computer is defined by just that, it's portability, its
`size, whether it can be easily carried, not whether or not it needs to require
`wireless communications.
`The specification includes another point just one paragraph down at
`column 4, line 24, which we've reproduced on slide 24, uses the optional
`word may. Mobile field unit may comprise wireless radio modem. In other
`words, it may not. These statements in the specification are the antithesis of
`lexicography and disclaimer. That standard is exacting. That's what the
`G.E. Lighting case tells us. You have to have clear and unmistakable
`statements in the intrinsic record to get to where the Patent Owner needs to
`get to and, in this case, even though the Patent Owner is going to get up and
`point to portions of the specification that seem to say that the invention
`requires wireless, they cannot contend with these other parts of the
`specification that make it optional and even more importantly, the
`prosecution history that very clearly shows just as in the Rambus case that
`we cited in our reply, that they pursued a broader invention and they can't
`narrow it today at the Patent Office. So the --
`JUDGE PARVIS: Does this case then turn entirely on the
`construction of mobile field unit?
`MR. TUCKER: Yes, Your Honor, it does.
`JUDGE PARVIS: And Petitioner, just to be clear, Patent Owner
`raised in its response, the Petitioner has not argued that it would have been
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`Patent 6,633,900 B1
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`obvious to modify the Storch Butler combination so that it used wireless
`communication.
`MR. TUCKER: That is correct. We are not taking that position in
`this proceeding. Instead, our position is that this term is not limited to
`wireless and so under the correct broadest reasonable interpretation Storch
`and Butler which teach portable mobile computers just like the 900 patent
`teaches that can be integrated in and out of different parts of the network at a
`customer facility or a back end facility, those are mobile field units under the
`broadest reasonable interpretation even though we concede in this
`proceeding that Storch and Butler are wired systems.
`JUDGE PARVIS: And there's no argument that it would
`(indiscernible) the case (indiscernible)?
`MR. TUCKER: We have not made that argument in these papers.
`JUDGE MCKONE: Now, the Patent Owner is going to point to
`various examples in the patent of wireless systems and I understand the
`qualifying language you just pointed out to me, are there any counter
`examples in the patent of wired systems that you want to point us to?
`MR. TUCKER: We have pointed to two parts of the patent, the
`specification that we think supports our position are the two that I just went
`over, Judge McKone. That's in column 4 where the specification describes
`wireless as an optional component, not necessarily required.
`JUDGE MCKONE: So all the embodiments and examples actually
`described are wireless embodiments; is that correct?
`MR. TUCKER: That is correct and in this case that's not controlling
`because there are examples in column 4 that wireless is optional and, like I
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`said in the prosecution history the examiner recognized that mobile field unit
`is not limited to wireless and in response to a restriction requirement the
`applicant said okay, we'll take the broader claims. They could have taken
`that wireless claim and they didn't and they elected those claims without
`traverse, and so this brings this case into the Rambus case and the Ventana
`case that we cited in our reply under similar facts that the Federal Circuit
`held very clearly and that the claim term had to be construed more broadly
`and not in this narrow way based on that restriction requirement.
`JUDGE PARVIS: Petitioner in its reply, points to column 4, I guess it
`ends right around lines 29 through 30, column 4, the reference that the
`wireless radio modem may be internal or external for a computing device.
`Has Petitioner argued that the combined teachings of Storch and Butler
`could have an external wireless modem?
`MR. TUCKER: So I think, Judge Parvis, the point -- I just want to
`make sure I'm on the same page with you, the part you're talking about is
`reproduced on our slide 24, its wireless radio modem may be internal or
`external?
`JUDGE PARVIS: Uh-huh, right.
`MR. TUCKER: Right.
`MR. TUCKER: I'm sorry, what was your question?
`JUDGE PARVIS: So with this sentence, has Petitioner taken the
`position that it would have been obvious to modify Storch and Butler to have
`one of those two, have an internal or an external wireless radio modem?
`MR. TUCKER: We have not taken the position that it would be
`obvious to modify Storch and Butler to include wireless. We have not taken
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`Patent 6,633,900 B1
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`that position. What we did point out, and I just want to focus on this
`sentence in the 900 patent because there is a dispute between the parties
`here. I think Patent Owner reads this entire paragraph as saying this part of
`the specification only means that the mobile field unit's wireless radio can be
`internal or external to the mobile field unit. It doesn't say that the mobile
`field unit might not have a wireless radio modem. We completely disagree
`with that position and instead, as we've stated in our reply and I think we
`explained, the first sentence in this paragraph is broad. It's broad. Mobile
`field unit may also comprise wireless radio modem 74. It's optional. It can
`or cannot. The last sentence in the paragraph makes the Patent Owner's
`point that it can be internal or external.
`So they can't attribute this technical distinction to both of these
`sentences. They make different points. The broader point is it could include
`the wireless radio modem. It also could not include it, and that assuming
`that that's a topic sentence in a paragraph in the instance where it could
`include the wireless radio modem, that could be internal or external too. So
`that sentence does not support the Patent Owner's position that somehow all
`mobile field units must have wireless communication.
`We think that the intrinsic record is enough here. We don't think that
`it's necessary to get into the extrinsic record. But I'd like to talk about it
`briefly in case the Board disagrees and thinks it needs to go to the extrinsic
`record, because here the extrinsic record confirms everything that I've said
`today. The reply that we filed discusses the problems with the extrinsic
`evidence that the Patent Owner cited. The Patent Owner's position
`remember is that mobile requires wireless, so mobile and wireless are
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`synonymous and the Patent Owner submitted some dictionary definitions
`and some regulations from the Federal government to support its position.
`As we pointed out in the reply, the problem with those regulations and
`definitions is they were almost exclusively from wireless sources. So if you
`want a definition that equates mobile with wireless, you're going to pick a
`wireless source and that's exactly what the Patent Owner did. So in response
`in our reply we've provided a much broader range of extrinsic evidence.
`Multiple textbooks, multiple articles, multiple technical dictionaries, all of
`which confirm that mobile and wireless are not synonymous. We
`summarized those in our reply and I'd like to just go over a couple of them
`real quick today.
`On slide 25, we've reproduced the Tanenbaum computer network
`textbook published just two years before the priority date of this patent that
`explains that portable computers are sometimes wired and even includes this
`little chart, wireless mobile to explain that you can have things that are
`mobile but not wireless, wireless but not mobile. Pretty much every
`iteration, and it even gives an example that's common through much of this
`extrinsic evidence. This idea that a worker or a traveler could be at work or
`at their hotel and plug their portable laptop computer in to the wired network
`and then when they're done for the day, they unplug and they go home or
`they go somewhere else and they plug it back in and that computer is
`mobile. That computer is not wireless, and that's the example and
`Tanenbaum gives on slide 26, that's the example that the Kurose & Ross
`textbook gives. So we have a textbook from just before the patent's priority
`date and just after the patent's priority date that confirm with the same
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`working example that one skilled in the art did not equate wireless and
`mobile to be the same thing.
`Slide 27 also includes an article from Charles Perkins explaining the
`same thing, that you can be mobile without being wireless. That's exactly
`what Mr. Perkins says. Computers can be considered mobile, even without
`any data communication or with wired data communications. For example,
`a user might wish to disconnect from an office ethernet connection and
`reconnect via a telephone link shortly thereafter.
`So, to put this all in context, coming back to a question that Judge
`Parvis asked earlier, this whole argument hinges on claim construction.
`Patent Owner makes two arguments in its Patent Owner response. One is if
`we win on claim construction, we win the claims. We obviously disagree
`with that and do not think that a mobile field unit should be wireless. But
`the other argument, as we explained in our reply, is just a rehash of the
`wireless argument. Patent Owner's second argument that the Storch and
`Butler do not teach a mobile field unit under any reasonable interpretation of
`the claim is because you can't communicate when you're in motion in the
`Storch system and they say it multiple times in the Patent Owner's response
`because you're tethered to a land line. That's the same argument just
`repackaged in a different way. So this dispute, it all comes down to whether
`a mobile field unit requires wireless or not and if the Board agrees with the
`Petitioner that it does not require wireless, these arguments all fall away.
`So with the time that I have in my opening arguments, I'd like to
`switch to the combination argument. As it did in the Patent Owner
`preliminary response the Patent Owner asserts that it wouldn't have been
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`obvious to combine Storch and Butler. Patent Owner's arguments can be
`broken down into two categories that I'd like to address.
`First, it would not have been efficient to combine Storch and Butler
`and second what basically amounts to an attack on some of the rationales
`that we proffered in the case for making the obviousness determination.
`And so before I address those arguments, I think it's important to provide
`context to the Board to summarize exactly what we did provide in the
`petition because we provided more than you would think for reading the
`Patent Owner's response.
`So, on slide 33 we explain here that we provided general reasons first,
`why it would have been obvious to combine Storch and Butler. The
`references are directed to the same problem. The references disclose similar
`back end systems and the references disclose additional implementation
`details in the technical terminal. And then we provided specific reasons,
`why it would have been obvious to combine Storch and Butler and
`specifically we provided a specific reason for every single claim limitation
`where we relied on Butler to fill a gap and so when I summarize Patent
`Owner's arguments I'd like to address the second one first. It amounts to an
`attack on our rationale. The attack on the rationale, it really only attacks
`these more general arguments that I've summarized on 33. It doesn't attack
`the more specific ones. For example, the Patent Owner in its response cites
`cases for the proposition that a similar purpose or similar disclosure by itself
`wouldn't have been enough, but as I discussed that wasn't our position. It's
`not our position that this is the only reason. We provided general reasons
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`and then specific reasons tethered to every single element of the claims and
`we briefed this in our reply.
`So with the couple of minutes that I have I'd like to address the other
`part of Patent Owner's argument which is the sufficiency argument, that it
`wouldn't have been obvious to combine Storch and Butler because it
`wouldn't have been efficient, and so to step back, in the proposed
`combination Butler's short message -- Butler teaches sending a short
`message -- is used to notify the technician of the initial task to be performed,
`and then responsive to the technician's selection in this combination, Storch's
`more detailed message is sent to provide the additional details.
`We explained this in our petition, as I've highlighted on slide 35, that
`this allows the combined system to more efficiently notify, focused on notify
`-- I've highlighted it three times in this one paragraph -- more efficiently
`notify the technician using a shorter initial message. This is how all
`communications work. If I go on the Internet, to say ESPN to check the
`scores from last night, I get a page that includes all the scores for all the
`games. It's a brief message with a little bit of information. If I want more
`information I click on the link and I get more data. It may not be efficient
`overall because you're sending data twice, sometimes it's repeated data but
`it's more efficient for that initial notification and that was our point with the
`petition.
`The Patent Owner didn't respond to this position. The Patent Owner,
`instead, tried to flip the script a little bit and reframe the argument to argue
`that well, the combination would result in an overall increase in data needed
`to complete the job because there's this overlap between the two pieces of
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`information. But all this means is that our initial argument on slide 35 has
`gone unrebutted, that it would have been more efficient to notify the
`technician in the field that the short message, hey, you've got an assignment,
`and then if the technician wants more information about that assignment he
`can select the assignment from the list and get more information. One more
`point on this is that --
`JUDGE PARVIS: You're just about at your ten minutes before you
`go into your rebuttal time.
`MR. TUCKER: Okay. Thank you. I just want to wrap up with, the
`efficiency argument doesn't make any sense from two additional briefings.
`That's one and we summarized this in our reply, I'll be brief. The 900 patent
`does the exact same thing. On slide 37 you see figure 10 shows the
`summary page. You click the link that says assignment No. 7296 and you're
`brought to an additional detailed assignment page. There's overlap between
`the data in the 900 patent itself. So it doesn't really make sense for the
`Patent Owner to argue that this would have been inefficient.
`Moreover, Dr. Sharony, Patent Owner's expert, admitted that this
`provides the user with additional flexibility and so that undermines the
`Patent Owner's argument. And finally, even if you believe the Patent
`Owner's factual premise, this isn't the law and this is the In re Fulton case
`that we have on slide 38. The cases don't require the combination to be the
`most preferred or desirable. You just need to prove that they would have
`been obvious to one skilled ibn the art. We provided that rationale and much
`of it has gone unrebutted. Thank you, Your Honors.
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`MR. MCNISH: Good morning, Your Honors. May it please the
`Board. Claim 1 of the 900 is patentable over Storch and Butler. Claim 1 of
`the 900 patent requires mobile field units and mobile field units
`communicate wirelessly. Storch and Butler don't, as you heard Petitioner
`just discuss. They're limited to land lines because they're designed for
`testing and repairing land line telephone facilities. Claim 1 is patentable
`over Storch and Butler for that reason alone. But claim 1 is also patentable
`over Storch and Butler because the combination of references simply doesn't
`make sense in the context of Storch and Butler.
`FedEx's combination of those references particular with respect to
`limitations F and G of claim 1, as we argued in our Patent Owner response,
`is simply not efficient and it's based on hindsight and conjecture and not a
`preponderance of the evidence. Your Honor, I don't think there's any real
`dispute at this point that a mobile field unit is limiting. It's part of the
`preamble, it limits the claims. It's essential the claims. The method steps of
`claim 1 require the use of a mobile field unit. Really the issue is, what does
`mobile field unit mean in the context of the 900 patent?
`I'm going to be turning to Patent Owner's slide 6. Patent Owner's
`slide 6 describes that the present invention -- this is in the Summary of the
`Invention -- the present invention provides a system for assigning work
`orders, communicating work orders, and communicating at the request of
`field personnel. The system of the present invention comprises an enterprise
`computing system of mobile field unit and wireless communication network,
`and if you continue during that Summary of the Invention, not just a
`Summary of Embodiments, but Summary of the Invention, a mobile field
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`unit comprises a computing device and modem for communicating over the
`wireless network to the enterprise computing system.
`Now, FedEx argued that there's no lexicography here. It's in the
`Summary of the Invention. The mobile field unit, you know, can
`communicate wirelessly. It's right here plain as day in the Summary of the
`Invention, not just the Summary of Embodiments.
`JUDGE HUDALLA: Are you saying that we should disregard the
`other part where it says the mobile field unit may also comprise a wireless
`radio modem?
`MR. MCNISH: So, Your Honor, the way a person of ordinary skill in
`the art would understand that, as Dr. Sharony testified, what that refers to is
`a computing device being provided with a wireless modem or some means
`of wireless communications so as to constitute a mobile field unit, and Dr.
`Sharony gives an example in his declaration testimony. He describes
`something called a Bluetooth null modem, and what that is is a connection
`between a computing device and something such as a cell phone in order to
`achieve wireless communications.
`JUDGE HUDALLA: I guess I'm having trouble because you're
`telling me I should look to probably the aspects of the object of the invention
`and give that higher weight or some sort of higher regard than these other
`parts of the spec where it says hey, you may include a wireless modem. You
`know, we're under a broadest reasonable interpretation in this case. I don't
`see how you square those two things.
`MR. MCNISH: So, let me explain. In Netcraft Corp. v. Ebay, Inc.,
`which I recognize is -- this is a Federal Circuit case from 2008 and I
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`recognize the Phillips case -- the Summary of the Invention mentioned in the
`present invention was enough to limit the scope of the claims, right? So this
`is referring to the invention as a whole and the broadest reasonable
`interpretation under In re Smith International has to be consistent with how
`the patentee describes his or her invention.
`So what the invention is being described as in the specification of the
`900 patent in the Summary of the Invention, not just embodiments, but the
`invention, is that there is a mobile field unit and it has wireless
`communications capabilities. It communicates over a wireless network.
`JUDGE PARVIS: Is the example in column 4 a portable computer, is
`a portable computer necessarily wireless?
`MR. MCNISH: There's certainly examples of wireless portable
`computers, but (indiscernible) it lacks wireless communications capabilities.
`It can be provided with a modem in so as to constitute a mobile field unit.
`JUDGE PARVIS: So the Patent Owner's position then is that say a
`portable computer is not the example of a mobile field unit?
`MR. MCNISH: So a mobile field unit as we're describing it is a
`computing device that communicates wirelessly. So standing alone, the
`mobile field unit would need to include some form of wireless
`communications.
`JUDGE PARVIS: And that's based then on not extrinsic evidence,
`but lexicography?
`MR. MCNISH: Not just lexicography, Your Honor, and actually that
`turns to a good point here. What Petitioner has said is that based on G. E.
`Lighting that unless there is some kind of lexicography or unless there's
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`some kind of disclaimer, you essentially have to read the ordinary meaning
`as broadly as possible and that's just not what the case law is. Under
`Phillips, the ordinary meaning of a claim has to be the ordinary meaning in
`light of the specification. I believe the exact wording is a meaning to the
`ordinary artisan after reading the entire patent.
`So what FedEx is doing, is FedEx is essentially inviting you to
`commit the same error in claim construction that led to the Federal Circuit
`reversing and remanding In re Smith International, the 2017 Federal Circuit
`case, and that legal error is that everything that expressly disclaimed,
`disavowed lexicographer is within the claim without regard to the
`specification. The claims have to be read in conjunction with the
`specification of which they're a part.
`So, and Smith explains that. In re Smith International explains that
`when there is a consistent reference in the specification or something and
`there's a consistent reference here to a mobile field unit as being wireless,
`the claim has to be understood in light of that consistent description and
`even if FedEx were correct about its legal approach, which they're not, we
`still have the lexicography as you see on Patent Owner's slide 6, where
`you've got a definition in the present invention of what the mobile field unit
`is communicating over a wireless network.
`JUDGE PARVIS: So the lexicography, Patent Owner's position that
`the specification has somehow defined mobile field unit to be something
`more narrow perhaps than what would be understood under Phillips, or is
`Patent Owner's position that Phillips in light of the specification defines
`mobile field unit in this way because to me there may be two different
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`arguments there. If Patent Owner is saying that the specification sets forth
`its own definition of mobile field unit in such a way that makes it clear that
`mobile field unit is different than what one of ordinary skill in the art would
`understand, that's a little different argument than under Phillips this is what
`the plain meaning of mobile field unit. Which is Patent Owner's position?
`MR. MCNISH: It's actually both, Your Honor, and let me explain
`that. So under In re Smith International, the Federal Circuit 2017 case, even
`under the broadest reasonable interpretation the claim terms have to be
`understood with respect to how they are consistently defined in the
`specification and as you heard from my colleague earlier, every embodiment
`in which the mobile field unit is communicating with the enterprise
`computing system, it is doing so over a wireless network. That's an example
`of the sort of consistent definition in the specification, or rather the
`consistent discussion in the specification of a mobile field unit
`communicating wirelessly.
`Now, stepping back from that, even assuming the Petitioner's legal
`argument based on G.E. Lighting is correct, and we dispute that it is because
`it fails to consider the ordinary meaning actually as an ordinary meaning in
`light of the specification, we do actually have some lexicography here and
`when we take a look at the Summary of the Invention, you have some pretty
`clear statements that a mobile field unit is going to be communicating over a
`wireless network.
`JUDGE MCKONE: Now what is your response to the argument from
`Petitioner that in response to a restriction requirement, you essentially
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