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`U.S. PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`MASABI LTD.,
`Petitioner,
`
`v.
`
`BYTEMARK, INC.,
`Patent Owner.
`____________
`
`Case IPR2017-01449
`Patent 8,494,967 B2
`____________
`
`Oral Hearing Held: August 22, 2018
`____________
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`
`
`
`Before JOSIAH C. COCKS, NEIL T. POWELL, and BARRY L.
`GROSSMAN, Administrative Patent Judges.
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`DOUGLAS P. LALONE, ESQUIRE
`THOMAS E. DONOHUE, ESQUIRE
`Fishman Stewart PLLC
`39533 Woodward Avenue, Suite 140
`Bloomfield Hills, Michigan 48304
`
`JENNIFER MEREDITH, ESQUIRE
`Meredith & Keyhani PLLC
`125 Park Avenue, 25th Floor
`New York, New York 10017
`
`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`
`APPEARANCES:
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`ON BEHALF OF THE PETITIONER:
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`ON BEHALF OF THE PATENT OWNER:
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`The above-entitled matter came on for hearing on Wednesday, August
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`22, 2018, commencing at 9:00 a.m., at the U.S. Patent and Trademark
`Office, 600 Dulany Street, Alexandria, Virginia.
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`
`P R O C E E D I N G S
`- - - - -
`JUDGE GROSSMAN: Good morning. Please be seated. We'll go
`off the record for just a minute while we get our computers to wake up.
`(Discussion off the record)
`JUDGE GROSSMAN: This is a hearing in IPR 2017-01449. I ask
`
`each party to make their appearances officially for our transcript. We'll start
`with the Patent Owner and then Patent Owner can sit down and when the
`Petitioner comes up, you can begin iour argument.
`
`And Petitioners, when you get up, you'll have an opportunity to
`reserve rebuttal time. So, if you'll let us know what rebuttal time you would
`like. Patent Owner, you have a motion to exclude some evidence. If you'll
`want to argue that during your time, you can save rebuttal time only on the
`motion to exclude where you have the burden; and then they can address
`that; and then you can, after the final say, if you want to reserve some time;
`and if you want to address it in the hearing.
`
`MS. MEREDITH: I can make it easy. I was going to just rest on the
`papers for that. I want to take all the time for the prior art.
`
`JUDGE GROSSMAN: Take the podium to make your appearance,
`and then we'll ask Petitioner to come up to the podium.
`
`MS. MEREDITH: I'm Jennifer Meredith from Meredith & Keyhani
`for Patent Owner, Bytemark, Inc.
`
`JUDGE GROSSMAN: Petitioner?
`
`MR. LALONE: Good morning, Your Honor. My name is Douglas
`Lalone, for Petitioner, Masabi. My colleague, Mr. Thomas Donohue, will be
`arguing the papers today.
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`JUDGE GROSSMAN: Would you like to reserve any time for
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`rebuttal?
`
`MR. DONOHUE: Thank you, Your Honor. I'd like to reserve 20
`minutes.
`
`JUDGE GROSSMAN: Each side, as we had a conference call on
`Monday to go over just some of the basic ground rules. As we explained in
`that call, each side will have 60 minutes. The timer should let you know
`when you will get your signaled time. I'll try and remind you. You can see
`the yellow light go on; and you can proceed whenever you'd like. One thing
`that I'd like you to do is, if you're going to use some of your demonstrative
`slides, as you refer to them, make sure you identify them sufficiently for the
`transcript, so that the transcript knows what slide you're on, and when we
`look at the transcript a month from now, we'll be able to figure out what
`slide you've pointed out. So with that, you can begin when ready.
`
`MR. DONOHUE: Thank you, Your Honor. May it please the Court,
`I'd direct them to start at slide 1 which is just an overview of what we are
`hoping to accomplish today.
`
`JUDGE GROSSMAN: Also to remind you, we have a complete
`record, electronically, in front of us on the screen, so, at least for me, from
`time-to-time you'll see me looking at the screen. I also have all your
`demonstratives in front of me with notes. So, if I'm not looking at you, it
`doesn't mean I'm checking my emails or doing something like that, it's just
`I'm looking at the record on the screen rather than on the big screen.
`
`MR. DONOHUE: Thank you. So, anyway, let's go back -- what our
`approach today is going to be, just give an outline of our general case and
`what's going on. We believe that the nature of both the '967 Patent
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`specification and claims, as well as the prior art, does not need nor is it
`justified to give the undue complexity that sort of been thrown into both this
`IPR and in the attempt at understanding the claims and what's going on.
`
`So, for the first part, we'd like to just give a general overview, even
`though I'm sure you're all aware of patent and prior art of what our
`understanding of basics of what's happening in these patents; what they're
`directed to; the nature of the claims; and the nature of their disclosure to sort
`of pierce through the lengthy verbiage, without accurately portraying what
`they're doing, but to try to simplify it because we don't believe this case
`deserves the in depth analysis interpretation that it appears to be headed
`towards.
`
`We'll discuss the central three claim construction issues we believe are
`more at the heart of the anticipation positions and the anticipation defense on
`behalf of the Paten Owner; and we believe that these three issues if, you
`know, sort of taken and resolved correctly, will drastically simplify both
`what we're looking at, as well as the ability to, you know, pierce through
`what the disclosures are both in the '967 Patent as well as these prior art
`references.
`
`We will, hopefully, show to you, establish that the claims for the '967
`Patent are properly put forth by the Petitioner as being anticipated by Terrell,
`Cruz, and Dutta references; and we will attempt to show that the positions
`on claims 2 and 19 were sort of top level asserted in the Petition with, what
`we believe is adequate support, can be clarified to the point that it really
`does make it clear of what's going on. Because, again, we believe this is
`more of a case of reading and attempting to add complexity where none is
`deserved.
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`So, if we could go to slide 2. For an overview of the '967 Patent and,
`
`again, we do realize you're aware of the contents here; but the '967 Patent
`specification claims, despite apparent complexity, really are directed
`towards the simple process of validating a ticket of a user on a mobile device
`after the time when the electronic ticket was purchased. This claim system
`is very simple and is an electronic ticketing system that displays a visual
`validation display element, which is simply an element that the ticket taker
`can look at and have some reliability or indication of a ticket's validity to let
`you into an event.
`
`So, when a user purchases the ticket, the unique number referred to as
`a token in the '967 Patent, it's sent to the user device, and that same token is
`stored in the ticketing database. In the '967 Patent sets an explicitly plea
`(phonetic) in column 2, lines 45 to 48. They talk about the purchase on a
`website -- in the process of purchasing, it assigns a unique number to the
`ticket; sends one to the mobile device and one to the servers shown in the --.
`
`JUDGE GROSSMAN: That's the same unique number, right? It
`sends one to the mobile device and one to the server? It's the same number?
`
`MR. DONOHUE: That's the way that particular discussion in the '967
`Patent says. It says you buy it; it generates a unique number; it sends that
`number to the mobile device; and sends it to the database. So, the clear
`discussion there is yes, it's the same token. When a user goes to activate the
`ticket in the '967 Patent, they request an activation. The token that was sent
`to the mobile device is now sent back to the server system. It then,
`according to the language of the '967 Patent, matches the token that was sent
`back to that stored in the database -- which logically makes sense -- it's
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`comparing and if they are the same and they match, then it turns around and
`authorizes and delivers the visual validation ticket to the mobile device.
`
`JUDGE GROSSMAN: And that in your slide, I think, what that
`visual (inaudible) delivers the visual validation? Is that your understanding
`of what is referred to as the ticket payload?
`
`MR. DONOHUE: Yes.
`
`JUDGE GROSSMAN: The bottom two boxes in slide 2 on the left
`side?
`MR. DONOHUE: Yes.
`
`JUDGE GROSSMAN: Would it be incorrect to try and simplify? So,
`
`when we're talking about the token --
`
`MR. DONOHUE: Yeah.
`
`JUDGE GROSSMAN: -- there's one on the mobile device, the same
`one is there, is there essentially a password so that when the mobile device
`user wants to now access their ticket and validate it, they were given what I
`might say, overly simplify as a password. They don't know what it is; but
`that's what the token is. They send that password back to the server; the
`server says you've got the right password; I'm going to send you the
`validated ticket, which is the ticket payload.
`
`MR. DONOHUE: You can use that. Loosely, it's -- my only
`hesitation with that is the general descriptor is throughout the process
`between Masabi and Bytemark, there's been a long history of a loose
`definition of what the token is; and is it the password to log in; is it some
`sort of user ID, so when I attach it, you know, it looks me up in the database
`and finds this. The reality is under the language of the '967 Patent, if you
`want to use the term password, it's fine; but the reality is when you log in
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`and request a ticket and it sends this ticket back, it's a value that is
`representative of that particular ticket -- maybe that seed (phonetic) may be
`what it is -- because in reality, the user will have -- if it's an even mildly
`successful system -- multiple tickets on there for multiple events, or multiple
`trips. When you go to select one, it's not an opt to say, you know, its Tom
`Donohue; it's not an opt to say this is Tom Donohue's phone. It's a ticket-
`specific identifier.
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`JUDGE GROSSMAN: I understand; it's not a user password; the user
`doesn't select it. The system picks some random number that it assigns to
`that ticket;
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`MR. DONOHUE: Yeah.
`
`JUDGE GROSSMAN: -- and then it sends it to the user and just
`when you're ready to ask for your ticket or when it's time to ask for us to
`validate it or to download the ticket payload --
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`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: -- we're going to use that token number?
`
`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: And if it doesn't match the same number that's
`in our system, we're not sending you the ticket?
`
`MR. DONOHUE: In a similar vein -- if you go to slide 9, Doug -- the
`Terrell reference that we rely on is a very similar process. It is a ticketing
`system directed towards the delivery of electronic tickets to a mobile device.
`When the user seeks to activate the ticket, the mobile service requests begin
`from the server, validation of a particular ticket having a specific ticket
`number. When that is validated, it, in return, delivers the ticket package. It
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`sends back the ticket package that includes ticket data that includes high-
`readable data for inspection purposes.
`
`So, in the large scale, top of the line, it is contacting the server;
`picking a specific ticket that needs to be identified. Terrell talks about
`validating that request and returning, essentially, a visual validation object
`for inspection of the ticket taker.
`
`Can we go to slide 12? Cruz, again, is disclosing an electronic
`ticketing system that discusses, essentially, modular tickets where tickets are
`sent in more than one portion to the user; so it's not necessarily delivered all
`to you at once, but it comes in modular sections. Yet, again, refers to a user
`seeking a validation by sending a request to the server, which is in paragraph
`90 of Cruz. In checking that data, compared to historic data, results in the
`putting together a ticket data object 403 that can include optically or
`visually-recognizable patterns and send that to the mobile device, which is in
`paragraph 61 of Cruz.
`
`So, again, Cruz, like Dutta, and the '967 Patent are all about,
`essentially, delivering this visual confirmation or validity element back to
`the phone after a request from the mobile device you're using that identifies
`the ticket in some fashion.
`
`And finally, Dutta -- if you want to go to slides 10 and 11. Dutta,
`again, is directed towards an electronic ticketing system that responds to a
`redemption request that by identifying the electronic ticket under column 7,
`lines 62 to 66, by returning a rapid-verification object which includes scrap-
`filled (phonetic) elements for human recognition.
`
`If you want to go to the next slide? Sorry, slide 11. And, obviously,
`there's animations, there's indications. This is, again, something merely
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`delivered to the mobile device in order to get some indication of validity to
`the ticket taker; and these are commonly used, and often used, in what we
`call low-cost fare situations like buses, trains, subways; wherein the value of
`the ticket itself isn't such that it justifies the complex network of scanning
`and having each ticket scanned and confirmed digitally by the server that
`this is the one and only use of this particular serial number, and once it's
`registered, it's done. Instead, these are visual indicators of validity that
`allow, without a network connection, people to pass through and for
`relatively low fares everything taken care of just by the visual indication of
`the ticket taker.
`
`JUDGE COCKS: Counsel, may I ask a question?
`
`MR. DONOHUE: Sure.
`
`JUDGE COCKS: In the institution decision you construed digital
`validation displayed object, from your perspective, do we need to
`(inaudible).
`
`MR. DONOHUE: No. Our decision is you do not. We believe that,
`you know, any of these can be tweaked; ours was just slightly different than
`your own; but it's just, essentially, an indicator as you've put forth in yours.
`
`JUDGE COCKS: Well, at this point, I don't own a construction, so
`I'm asking you to tell me what the construction is.
`
`MR. DONOHUE: Okay; fair enough, thank you. Our proposed
`construction is virtually the same as that adopted by the Board, and we,
`generally, agree with the Board's construction.
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`JUDGE GROSSMAN: Just to reinforce what Judge Cocks said, you
`want to say adopted by the Board; but we don't really have one yet.
`
`MR. DONOHUE: Okay.
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`JUDGE GROSSMAN: We have a placeholder that was in our
`
`decision to institute under a reasonable likelihood standard because in order
`to decide whether we're going to institute, we have to know what the claims
`mean.
`
`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: But for purposes of that first step, we came up
`with a construction, but that's not any construction that we have adopted.
`Now, you have one in your petition; the Patent Owner has a different one --
`had one in their preliminary response; they have a different one in their
`actual response.
`
`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: And I understand how the references all
`generally do the same thing, the issue is do the references anticipate what's
`claimed in the patent?
`
`MR. DONOHUE: Right. And to that degree that's why, again, why I
`started out with the concept that these three terms that we've put forth as
`needing construction, or have gone back and forth, really put a box around
`both what we're discussing and what the prior art is; and there we're going to
`want to allow an intelligent and rational decision on anticipation. So, I think
`these are very important. Our original proposed construction was any object
`that is readily-recognizable from human observation. The Board's
`preliminary construction strictly for the purpose of institution was a display
`object that is readily-recognizable from human observation and validates a
`ticket.
`
`One of the issues the Patent Owner had with this was the term -- and
`I'm not speaking for you -- but mentioned in their reply was that the concern
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`was with the human observation and validates. In other words, that there
`was some proactive thing. In line with that, what we would suggest and
`prefer, is a display object that is readily-recognizable from human
`observation and provides an indication of the ticket's validity. And the logic
`behind that is -- as you'll find out as we go into this and we go through our
`full discussion here on claim construction -- is the Patent Owner has started
`to introduce in their construction of addresses (phonetic) new terms
`redefining objects. Now, all of sudden we have verified authenticity rather
`than validates. There's this gigantic discussion of what's valid; what's
`authentic; what's inspected in this attempt to generate all kinds of differences
`where none actually exists. So, our preference is one, to remain as close to
`the Board's initial -- we have no problem with instead of validates, we would
`suggest that gives an indication of validity would be a much more apt
`description of what is actually going on.
`
`And part of that too is any visual object can only give an indication of
`validity. When you digitally scan a barcode or something like that and
`communicate back to the server, you're actually taking an individual number
`or an individual identity from this ticket and comparing it to the server; and
`at the same time -- because you're connected in this way -- you can check it
`off. So, even if it is copied perfectly, at least you can't do it a second time.
`With this visual validation display object you're requesting a ticket taker to
`look and make a judgment based on it -- no matter how complex -- that he
`sees it's valid.
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`As far as authentication goes, you can't truly authenticate visually if
`it's a pure copy, exact copy -- and with digital technology, you can copy
`colors, pictures, animations, you name it. It's all well within, you know,
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`people's capacity nowadays, which is why these systems, both the prior art
`reference, as well as the '967, utilizes delayed delivery of request to activate
`that you can change or wait to give this visual indicator to the ticket taker at
`a time period where they don't have periods of time to hack the system, or
`copy it, or what have you.
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`But, at the end of the day, the visual indicator is just that. The visual
`validation display element can only ever amount to an indication of validity
`or an assurance of validity because there is no sort of level of authentication
`that the human can do without actually having referenced the database to see
`that it was actually assigned to this person; it was only used once; etc. So is
`our data, it can only be communicated with specific numbers and interaction
`between server system and that nullifies it.
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`JUDGE GROSSMAN: So, the nuisance difference between the
`construction and the position to institute that said it validates, and your
`proposed modification is a (inaudible).
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`MR. DONOHUE: Yes.
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`JUDGE GROSSMAN: It's just that all that the visual validation
`displayed object is a picture, or something, something visual?
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`MR. DONOHUE: Right.
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`JUDGE GROSSMAN: An animation or something. And if for some
`reason someone be able to counterfeit that, the ticket taker at the gate will
`see the code visual and will let the person in whether it's a valid ticket or
`not?
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`MR. DONOHUE: Right.
`JUDGE GROSSMAN: Okay.
`MR. DONOHUE: Yeah.
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`JUDGE GROSSMAN: So, it's not technical -- so you're saying we're
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`not technically from saying valid, technically you're saying that it's an
`indicator that indicates (inaudible)?
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`MR. DONOHUE: Right; and the reason why we also went down that
`road is because of the proposed construction elements proposed by the
`Patent Owner; and, basically, they made the assertion in their Paper 19, page
`5, that really the term validation should be authentication because it's really
`authenticating, and valid just means it can -- you know, valid can mean that
`it's authentic or it could mean that it's still operationally good; and something
`can be authentic but invalid; or invalid but authentic -- you know, if the time
`period's up. We think this is, one, it's a bad idea. For one, it's introducing
`authentication term into the language of the patent where the only -- there
`was one precise use of the term authentication in the '967 Patent that had
`nothing to do with the visual validation display element. It was talking
`about authenticating the token as it came back to the server to check whether
`it was any good. The entire rest of the time it uses validation.
`
`And the other reason why we don't think this is a useful direction to
`go down either is it is somewhat immaterial. They've used validities is used
`throughout the Patent; but two, when it comes down to it, when the ticket
`taker is looking at the visual validation to let you in or not, if the visual
`validation is accurate, it means it's a valid ticket to get in, which implies that
`it's still good and it gives enough indication of validity that it thinks it's
`authentic. If it's expired -- even the '967 Patent talks about disabling the
`visual validation display object. So, the fact is if it's there, it works both
`functions. Is the ticket good is the essential question, you know, which
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
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`includes both a time and a period as well as, you know, a time period where
`it should be activated, as well as some assurance that it is not a counterfeit.
`
`JUDGE GROSSMAN: I want to ask you a question about your
`suggested proposed modification in your reply on a token?
`
`MR. DONOHUE: Yeah.
`
`JUDGE GROSSMAN: Everybody agrees in the first part of the
`definition that it's displayed and is readily-recognizable from human
`observation. And then you add the phrase, and provides an indication. Is
`what you're saying is it's the display object that provides the indication?
`
`MR. DONOHUE: Yes.
`
`JUDGE GROSSMAN: It's not something different than the display
`object?
`
`MR. DONOHUE: No.
`
`JUDGE GROSSMAN: Right. So, I'm trying to make sure as in all
`claim construction, you're looking for precision of what the claims actually
`mean; and so when you say and provides an indication, it's really and the
`display object that's referred to in the first part of that sentence that provides
`the indication; it's not something different? And I ask because, for example,
`Terrell used up two indicators -- he includes a visual indicator and an
`electronic indicator.
`
`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: And it gives you the option of using a barcode
`reader or not.
`
`MR. DONOHUE: Right.
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`JUDGE GROSSMAN: And it's on the same page (phonetic); and that
`
`is different from a construction -- so that provides an indication of the
`(inaudible).
`
`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: But you're using a barcode. But what you're
`talking about in your construction, I think, is that it is the display object that
`has two requirements. One is that it's readily recognizable from human
`observation; and the display object also provides an indication of
`(inaudible).
`
`MR. DONOHUE: Correct.
`
`JUDGE GROSSMAN: Is that correct?
`
`MR. DONOHUE: That's correct. So, the second part that we've
`moved on in the slide to the term token; but before we do that, I'd like to
`stress one more thing that the visual validation display object. Can you go
`back one? So, the second issue that I'd just like to briefly address is this
`addition of recently secured so as to avoid piracy. That is unsupported; and
`we don't believe that this moves forward any intelligent interpretation of
`what is or what is not a visual validation display object, not for the least of
`which is the '967 Patent has no metes or bounds to give any indication of
`what it is to be reasonably secured so as to avoid piracy; and that can arrange
`from all these simply delivering it in a contemporaneous manner from the
`request to activation so you don't have it at any time. Is that reasonably
`secured? It's not encrypting it on the way; it just is we don't believe that it's
`necessary or productive.
`
`We're going to move onto the next slide.
`
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`JUDGE GROSSMAN: When you say not necessary or not supported,
`
`in anything by the specification?
`
`MR. DONOHUE: Both. I mean, you know, that there is a brief
`mention of, you know, that the visual validation object can be or should be
`recently secured in one sentence, but it doesn't provide that as a basis for
`reading that into the term visual validation from a product's reasonable
`standard., or product's reasonable construction, as used in the claim or the
`rest of the specification. So, because of the fact it has vague language, I
`would argue it's also not supported properly either to give anyone a concrete
`idea of what is actually being claimed if that's put into the claim
`construction.
`
`JUDGE GROSSMAN: The claim construction -- where we switched
`the token --
`
`MR. DONOHUE: Yeah.
`
`JUDGE GROSSMAN: -- is exactly where you were going. Is there
`anything in the District Court litigation where they construed these claims
`that we should know about?
`
`MR. DONOHUE: The claims --
`
`MR. LALONE: I'm not sure I can add anything to that; I'm not sure.
`
`MR. DONOHUE: I'm not recalling at the moment. I don't believe so.
`Certainly, these claim constructions, either one proposed -- but, actually, I
`shouldn't say that -- the original proposal -- well, actually, I'm looking at the
`wrong one, that's why -- no, the court's, Plaintiff's construction, original
`construction, Petitioner's proposed construction are all what were set forth,
`lodged more or less -- you know, I can't promise word-for-word, but more or
`less -- a look in the Eastern District of Texas, the newly proposed
`
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`construction is not anything that has been come up or addressed, to my
`knowledge, in the Eastern District case.
`
`JUDGE GROSSMAN: I mean I like to say, you know what's
`proposed when you're talking about the Patent Owner's --
`
`MR. DONOHUE: Yes.
`
`JUDGE GRIMES: -- (inaudible) proposed that's on your slide
`number 5?
`
`MR. DONOHUE: Yes.
`
`JUDGE GROSSMAN: And because I ask if these things -- you also
`have a (inaudible) proposed, which is in your reply.
`
`MR. DONOHUE: Yes; that is true; fair enough; thank you, Your
`Honor. Moving to token, slide number 6, the Petitioner reasserts that the
`construction of token -- their construction or our construction, sorry -- is the
`most broadest reasonable construction; and that is an electronic information
`that represents a ticket. It's essentially a placeholder. It's in line with the
`common usage of the term token, meaning something that's an impression or
`representation of something else, which Dr. Sigurd's declaration and support
`of our reply, Exhibit 1018, paragraph 40 supports.
`
`The '967 Patent also provides different examples of tokens within the
`specification that include "the unique number" or a number related to seating
`information, which is in the '967 Patent, paragraph 39. And, again, I won't
`go through, we just talked about it; you know, the website -- it talks about
`the website sending the unique number referred to a token to the mobile
`device in column 2, 45 to 48; and it says each seat has a data record that has
`an unique show identifier and a ticket token, which includes the identity of
`the seat itself, which is in column 5, 13 to 15.
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`We believe the broad meaning of token is appropriate in this case as a
`
`representative value. We disagree with both the Patent Owner's original
`proposed construction and we vehemently disagree with the Patent Owner's
`latest proposed construction.
`
`JUDGE GROSSMAN: What about the placeholder construction -- I'll
`call it -- in the decision to institute that we used where we assigned a
`function to the word token where we said it is electronic information that
`causes validation of the purchased ticket. Now, that sort of maybe you
`looked into it for what it does once it's in a process of validating --
`
`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: -- that's the payload.
`
`MR. DONOHUE: Right.
`
`JUDGE GROSSMAN: That's how it's used; and I understand that is a
`functional thing that we put in there. In your proposed construction, it's just
`a random number, it's just any kind -- random, unknown indicator -- that the
`computer knows but nobody else knows what it is. What it's used for at that
`point might be irrelevant to its -- maybe to find in other clauses of the claim
`-- but the function of the token -- you're separating the function of the token
`from what the actual token is. It's just some electronic information.
`
`MR. DONOHUE: Right. I would argue it doesn't necessarily even
`mandate that it's, you know, unknown. You know, there's plenty of ways of
`delivery. It could be, you know, it doesn't have to be some, you know. It is
`a representative number; it represents a particular ticket; it represents, you
`know, what was purchased, etc. And, so, of course, keeping it from public
`view would be beneficial, but for the broadest reasonable definition of token,
`I'm not sure it, necessarily, requires that it be "unknown." There are plenty
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`Appeal IPR2017-01449
`Patent 8,494,967 B2
`
`of methodologies of delivering it in a fashion that could be known and yet
`not accessible by the individual to fool the system.
`
`JUDGE GROSSMAN: The only thing that we require it being known
`(inaudible). If it's said in the claim that a token -- I'm sorry, the server --
`over whether the wording that was in the specification so as we're looking
`through the correct instructions of the token, based on the specification,
`whether the specification says. Are you aware; is there anything in the
`specification that refers to the token as an unknown?
`
`MR. DONOHUE: No; yes. No, I am not aware of any. The closest, I
`think, the Patent Owner might come back with this in one embodiment they
`talked about it being a randomly generated value. T

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