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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`TELESIGN CORPORATION,
`Petitioner,
`
`v.
`
`TWILIO INC.,
`Patent Owner.
`____________
`
`Case IPR2017-01976 (Patent 8,837,465 B2)
`Case IPR2017-01977 (Patent 8,755,376 B2)
`____________
`
`Record of Oral Hearing
`Held: November 15, 2018
`___________
`
`
`
`
`Before ROBERT J. WEINSCHENK, KIMBERLY McGRAW, and
`SCOTT C. MOORE, Administrative Patent Judges.
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`Case IPR2017-01976 (Patent 8,837,465 B2)
`Case IPR2017-01977 (Patent 8,755,376 B2)
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`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`JESSE J. CAMACHO, ESQUIRE
`CHRISTINE GUASTELLO, ESQUIRE
`Shook, Hardy & Bacon, LLP
`2555 Grand Boulevard
`Kansas City, Missouri 64108
`
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`WAYNE STACY, ESQUIRE
`SARAH GUSKE, ESQUIRE
`Baker Botts, LLP
`101 California Street, Suite 3600
`San Francisco, California 94111
`
`Also Present: Robert McHenry, Twilio
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`The above-entitled matter came on for hearing on Thursday,
`November 15, 2018, commencing at 1:01 p.m., at the U.S. Patent and
`Trademark Office, Madison Building, 600 Dulany Street, Alexandria,
`Virginia, 22314.
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`P R O C E E D I N G S
`- - - - -
` (Proceedings begin at 1:01 p.m.)
` JUDGE WEINSCHENK: All right. Good afternoon
`everyone. This is an oral hearing for IPR2017-01976 and
`01977.
` Let's start with appearances, and when you introduce
`yourself, please step up to the center podium.
` Who do you have here for petitioner?
` MR. CAMACHO: Your Honor, this is Jesse Camacho, and
`a colleague, Christine Guastello.
` JUDGE WEINSCHENK: All right. Thank you,
`Mr. Camacho.
` MS. GUSKE: For patent owner is Sarah Guske and
`Wayne Stacy. And also from Twilio, Robert McHenry.
` JUDGE WEINSCHENK: All right. Thank you,
`Ms. Guske.
` As you may or may not know, usually when the first
` snowflake hits the ground here in D.C., the city shuts down,
` so we certainly appreciate you all braving the elements and
` making it here today.
` We'll start with a few preliminary matters. As you
` can see, Judges McGraw and Judge Moore are appearing
` remotely, so in order for them to hear you, please step up
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` to the center podium when you are speaking. And if you are
` using demonstratives, please refer to slide numbers so they
` can follow along.
` Secondly, in our order we gave each side 60 minutes
` to present their case for both of these cases. After
` looking over the issues, I think we actually may need a
` little bit more time to get through everything here today,
` so if we go a little bit longer, I'll make sure both sides
` get equal amounts of time.
` But with that, is there any time constraints we have
` here from either side in terms of travel after the hearing?
` MR. CAMACHO: Petitioner has a 4:45 flight.
` JUDGE WEINSCHENK: Okay. What time would you need
`to be done here, would you say?
` MR. CAMACHO: I would say 3:20, 3:30.
` JUDGE WEINSCHENK: Okay.
` MR. CAMACHO: But if we have to push that, that's
`okay.
` JUDGE WEINSCHENK: Okay. All right. Ms. Guske,
`any time restraints on your end?
` MS. GUSKE: Not for patent owner, no.
` JUDGE WEINSCHENK: All right. And then the last
`issue is, I know we have some information that was filed
`under seal in these cases. As of right now, this hearing is
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`open to the public. The transcript will be public. I think
`it would be my preference to keep it that way, so if we can
`sort of refer to information at a high enough level, I think
`that would great for us.
` If we do reach a situation where you think you need
`to refer to some confidential information, please stop me and
`let us know, and we can make sure that that designation gets
`in the transcript. Okay?
` All right. Well, with that, let's start with
`petitioner, Mr. Camacho.
` How much time would you like to reserve for
` rebuttal?
` MR. CAMACHO: 30 minutes, please.
` JUDGE WEINSCHENK: Okay. Like I said, if we need
`more time, which I think we might, I'll keep track of that
`for us. All right?
` MR. CAMACHO: Okay. Thank you very much, Your
`Honor. May it please the Board.
` JUDGE WEINSCHENK: Can I actually, before you
`begin, actually direct you where I'd like you to begin --
` MR. CAMACHO: Sure.
` JUDGE WEINSCHENK: -- if that's okay?
` MR. CAMACHO: That is.
` JUDGE WEINSCHENK: I think it would be helpful to
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`myself and my panel members here if you could, at least at
`the beginning, give us a sort of overview of the technology
`here. Not just sort of in an abstract view, but maybe in
`terms of an example claim, like Claim 1, or something like
`that.
` MR. CAMACHO: Yes, Your Honor. The subject matter
`of the two patents, the two patents share a common
`specification. So the '376 patent and the '465 patent are
`very similar to each other. Like I said, they both share a
`identical common specification.
` And I'll start with reading from petitioner's
`page 21. Petitioner -- I'm sorry -- the patent owner
`response is page 21.
` It says, "The inventors of the '376 patent sought to
` solve a problem relating to developing software applications
` that interact with and use older, complex telephony network
` systems."
` So what these two patents are trying to do is make
` it easier for people who want to interact with a network,
` but something that happens behind the scenes of the network,
` interact with that network.
` The use case of the two patents is a telephony
` network.
` So, for example, if someone wants to interact with
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` telephony, historically, that's been difficult. So the
` solutions provide by the '376 patent, by the two patents at
` issue, is to provide an interface to make it easier for
` developers to interact with an older network, in this case a
` telephony network. Because developers know how to code,
` they know how to make a web application, that's familiar.
` There's two main development models that we'll get
` into, but first I want to address your question. And now I
` can address your question in the context of, say, Claim 1 of
` the '376 patent.
` So Claim 1 of the '376 patent begins with operating
` two different types of networks; operating a telephony
` network and internet-connected system together with this --
` with a plurality of application programming resources. API
` resources.
` An API resource is a resource that can be used by
` the API. So, for example, so it would include a resource
` that would allow someone to make a call, place a call,
` transfer a call, something like that.
` Again, just walking through the steps of Claim 1.
` It says, "Initiating a telephony session. A telephony
` session is not the same as a telephone call. Initiating a
` telephony session is illustrated in various figures, and
` basically, it's the start of a process."
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` The second step is communicating with an application
` server to receive an application response.
` So one way -- I think one thing that can be helped
` if Your Honor wants a little bit more background is to maybe
` direct the Court's attention to Fig. 7.
` JUDGE WEINSCHENK: Did you say Figure 7?
` MR. CAMACHO: Yes, Figure 7. Figures 7 through 12
`just provide various -- they're just illustrative embodiments
`of the invention.
` So you see what happens in what's labeled step S1,
`there's an incoming call. So say someone wants to make a
`telephone call to some inbound number, a target phone number.
`The incoming call comes in, and that's step S1.
` Those steps are also parroted or parallel in Fig. 1.
`We don't need to turn to Fig. 1, they're just also in Fig. 1.
` So that's step S1. What happens there is there is a
` lookup that occurs based on, say, the incoming call.
` So if someone wanted to call 867-5309, well, this
` little URI, step S1, would look up that phone number and map
` and understand that that phone number needs to be mapped --
` which is step S3 is the mapping -- that's going to get
` mapped to the application server, which is the vertical bar
` on the right. And it's also referred to as a web service.
` So again, the call comes in, it gets mapped by way
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` of that URI. The URI is the Twilio.com/autoattendant/, and
` it's that string that ends in D0.
` JUDGE WEINSCHENK: And what does the mapping
`actually entail?
` MR. CAMACHO: So what the mapping does is the
`mapping allows the historic telephony to be converted into a
`type of protocol that can be used over the web. The best
`place to see that is at the end -- at the bottom of Column 3.
` Column 3, I'll just read it for the Board's benefit.
` So this is Column 3 of the '376 patent starting at line 52.
` It says, "Step S3, which recites mapping the call to
` a URI, functions to enable a telephony session to be
` converted into a format that can be handled with standard
` web servers."
` So what happens is basically that URI gets
` generated. That's what allows the incoming call to interact
` in the same way that a web model would interact.
` So we see the request S5, and then a response S9,
` and then another request S5, with a corresponding response
` S9, and it repeats one more time in Fig. 7, a request S5 and
` a corresponding response, S9.
` JUDGE WEINSCHENK: So does the mapping have to do
`with generating the URI in some fashion?
` MR. CAMACHO: Well, I think so. Inasmuch as it says
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`that it allows -- it functions the telephony session to be
`converted into a format, then the mapping is going to map,
`yes, the call to that specific URI.
` That URI could be -- or could already exist. It
` doesn't need to be generated in real time. I think that's
` part of the associating stuff that is more expressly recited
` in the '465.
` But generally, before this even happens, there would
` be an associating really before step S1 that would associate
` a URI with an inbound call. So that when somebody calls a
` target number, that's how the system knows to direct the
` call to a specific server associated with that URI.
` JUDGE WEINSCHENK: Okay. I know there's some --
` JUDGE MOORE: Counsel, you're saying this -- you're
`saying the incoming call then would be the telephony --
`telephony endpoint?
` MR. CAMACHO: The telephony endpoint is generally
`the telephone number, or it could be -- for example, that's
`addressed at Column 3, line 60, where it says it could be a
`DID, a direct inbound dial, phone number or a VOIP SIP
`address.
` So the telephony endpoint could be either one of
` those. Generally, it's going to be the phone number, or
` it's going to be the whatever's needing to be called, Judge
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` Moore.
` JUDGE WEINSCHENK: Okay.
` JUDGE MOORE: Thank you.
` MR. CAMACHO: Sure.
` JUDGE WEINSCHENK: Do you think now maybe we could
`take these in order of the case numbers here? Maybe we could
`turn to the 1976 case first and go through the issues there?
`Is that agreeable, Mr. Camacho?
` MR. CAMACHO: Yes, that's fine.
` JUDGE WEINSCHENK: Okay. And the first question I
`had for you on the 1976 case, which is the '465 patent,
`patent owner raises a couple of claim construction issues
`here. They propose constructions for telephony endpoint and
`for URI.
` Does petitioner have any dispute with those
`constructions? I understood they were agreed to in the
`district court and adopted by the district court. Is there
`any dispute about those constructions in this case?
` MR. CAMACHO: Tell me the two again just to confirm?
` JUDGE WEINSCHENK: We have telephony endpoint,
`which patent owner proposes construing as an end user device
`identifier, such as a telephone number or mobile device
`address.
` MR. CAMACHO: I think, to the extent it would
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`include -- I don't see any major issues with that as long as
`it would include -- the "such as" is important, so a SIP
`address would also include, but I think that's captured in
`that claim construction.
` JUDGE WEINSCHENK: Okay. And then their
`construction for URI is, "A compact sequence of characters
`that identifies an abstract or physical resource."
` MR. CAMACHO: No, we did not have any dispute on
`that.
` JUDGE WEINSCHENK: Okay. That's helpful. Thank
`you.
` And we've been talking a little bit about this
` patent and the claims. I believe Claim 1 has this
` associating an initial URI with a telephony endpoint, and I
` was hoping you could walk through this for me because I
` think there's confusion here, the parties are -- there's a
` little bit of a dispute about what's identified as what in
` each of these elements.
` So what is petitioner's argument here specifically
` about what is the telephony endpoint in the prior art -- and
` you've identified we can start with the Maes and Ransom
` combination -- and how does it teach associating a URI with
` that endpoint?
` MR. CAMACHO: Okay. Yes.
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` If you want to start with the Maes reference --
` essentially, just to sum things up, the Institution decision
` is correct. What the Institution decision says is right.
` As far as the telephony endpoint is going to be the
` target, the thing that is going -- that is trying to be
` called. That is trying to be reached.
` So in Maes -- let me see, I think I actually have
` the ETSI reference up first. Let me confirm.
` (Pause in the proceedings)
` JUDGE WEINSCHENK: And I guess I'll frame the
`question I have for you here even more specifically.
` MR. CAMACHO: Sure.
` JUDGE WEINSCHENK: I think patent owner seems to
`argue that what you've pointed to as being the telephony
`endpoint is an application in Maes, and I'm trying to figure
`out, is that what you're relying on is the telephony
`endpoint, the application 14, or is it something else?
` MR. CAMACHO: Okay. I see. Okay. I will walk
`through this and then step back, and then if I don't hit it,
`I will go back and address His Honor's question.
` So in Maes, the URI of the application initially
`assigned to the incoming call, that's going to be the initial
`URI.
` So as far as what the initial URI is, the initial
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`URI is the URI of the application that was initially assigned
`to the incoming call.
` JUDGE WEINSCHENK: Okay. And Maes doesn't actually
`teach a URI though, correct?
` MR. CAMACHO: Maes does not expressly use the
`word -- or the letters "URI", but Maes does describe
`communicating with an application, and that application would
`be associated with a URI.
` But you're right, Maes does not expressly use the
`term "URI", Ransom does.
` JUDGE WEINSCHENK: Right.
` MR. CAMACHO: Right.
` JUDGE WEINSCHENK: So you've got an application,
`and you argue that someone reading Maes and Ransom together
`would know that the application would have a URI.
` MR. CAMACHO: Yes. Exactly. For sure.
` JUDGE WEINSCHENK: Okay. What's the telephony
`endpoint that we're associating this URI with?
` MR. CAMACHO: The end -- okay. In ETSI, it's the
`Sarah@ -- it's the target address.
` JUDGE WEINSCHENK: One second. Let me find out
`where you're -- in the ETSI reference.
` MR. CAMACHO: Yes. In the ETSI reference,
`there's -- I'm doing this from memory -- there's a symbol and
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`it says Mary@. It's a SIP address.
` JUDGE WEINSCHENK: Okay.
` MR. CAMACHO: It's in the lower -- lower right
`portion of the diagram, of the main ETSI diagram. So
`basically, it's the SIP address of the person to be called.
`Mary@company.com. That's the telephony endpoint.
` So the telephony endpoint is the target. It's
`what's being contacted. It's what's trying to be reached.
`In ETSI, it's Mary@company.com.
` JUDGE WEINSCHENK: Okay. And what is it in Maes?
` MR. CAMACHO: I think in Maes -- I apologize because
`it's the (inaudible) so I'm making sure I'm not getting
`tripped up.
` I believe in Maes it is also the incoming call. So
`it's the number of the address associated with the incoming
`call. It's the target number that's being called. That's
`the telephony endpoint, who you're trying to call.
` JUDGE WEINSCHENK: Okay.
` MR. CAMACHO: The incoming call.
` JUDGE WEINSCHENK: And does that fit our
`construction here, that it's an end user device identifier?
` MR. CAMACHO: Sure. It's like -- yeah. It's the
`address -- it's the call -- like the number that's being
`called. It's just like who you're actually trying to call,
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`whatever that is.
` JUDGE WEINSCHENK: Okay.
` MR. CAMACHO: I -- I did -- I don't think there's a
`distinction between like the phone number and the phone.
`There was never such a distinction below.
` JUDGE WEINSCHENK: Okay. And then how do we know
`that the URI of the application gets associated with that
`phone number?
` MR. CAMACHO: Because when the call is actually --
`when the call is actually processed, like for instance in the
`ETSI reference, the Mary@. When the Mary gets -- when the
`Mary@ gets sent down through that Cloud 2, it includes
`information about, say, the calling device.
` So, for example, if we flip back to the ETSI
`reference, the ETSI reference is going to include information
`about the call. So if it includes information about the
`call, then it was associated with the call.
` JUDGE WEINSCHENK: Okay. And then how do we get to
`the mapping limitation? How is the mapping different from
`the associating?
` MR. CAMACHO: So the associating is associating the
`URI with the endpoint. So that would be associating the URI
`with the phone number.
` Mapping is mapping the URI to the telephony session.
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` We know that the URI gets mapped to the telephony
`session because the URI includes information about the
`telephony session, such as the calling party, so it must have
`been associated --
` JUDGE WEINSCHENK: So let --
` MR. CAMACHO: -- with that mapping.
` JUDGE WEINSCHENK: -- so let's start with the first
`ground, with Maes and Ransom.
` Where do we have a disclosure that the URI includes
`information about the telephony session?
` MR. CAMACHO: I wanted to wait because I wanted to
`answer the specific question instead of just (inaudible).
` Can you confirm the question, Your Honor?
` JUDGE WEINSCHENK: Yeah. My question was, you said
`that mapping the initial URI to the telephony session is
`disclosed because the URI includes information about the
`telephony session.
` And my question was, where do we have disclosure in
`Maes and Ransom that the URI that was associated with the
`telephone number includes information about the telephony
`session?
` MR. CAMACHO: Okay. We addressed this on page 18 of
`the '465 petition.
` JUDGE WEINSCHENK: Okay.
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` MR. CAMACHO: And it says, "As described above for
`element 1B, Maes discloses that once application 14 is
`assigned to the incoming call, call router 21 sends a request
`to application 14 over the internet. That includes
`information relating to the call" -- and to answer His
`Honor's question -- "such as the appropriate TEL-address,
`e.g., the duration of the call, if it was session-based," and
`that comes from Exhibit 1003 at 1558 through 62. Okay.
` THE COURT[MS1]: And again, though, how do we know that
`that TEL-address, which I guess is your -- what you're
`pointing to as the information about the telephony session --
`how do we know that that gets included in the URI?
` Because again, I think the problem we're having here
`is Maes doesn't actually talk about a URI. I know Ransom
`talks about URIs but doesn't actually say putting telephone
`addresses into the URI. Right? So that's -- you're saying
`that would be obvious, I assume.
` MR. CAMACHO: I am. That's right.
` And that basically gets to the heart of the issue is
`that the information that you're describing, that in, for
`instance, the Maes reference, or the ETSI reference, this
`information that would be included in the body of the
`submessage, such as this that I just said, or even the
`calling party, Mary@ is -- that called -- the calling party,
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`the '465 patent discloses that that also is state information
`or information associated with the telephony session.
` That sort of information is going to be included in
`the body of a SOAP message.
` But if, per Ransom, one was employing a REST model,
`then the information that's in the body would be in the URI.
`So that's why it would be in the URI.
` JUDGE WEINSCHENKWEINSCHENK: So your position is that
`anytime
`you would switch over to use REST instead of SOAP, the
`information that would be in the body, for example this
`telephone address, would then be put into the URI itself.
` MR. CAMACHO: And just to confirm, it wouldn't be
`like any information, like if -- the SOAP message could
`contain a lot of information. I'm not contending that all
`that information would get put into the URI, but some
`information, such as the calling party, the person who is
`making the call, that information would get put into the URI.
` JUDGE WEINSCHENKWEINSCHENK: Okay. How do we know
`that?
`Like where is the evidence in the record that we know that
`that would happen?
` MR. CAMACHO: Okay. That's generally going to come
`from, for example, Dr. Nielson addressed this in paragraphs
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`59 through 62 in Exhibit 1010, and 64 through 66.
` What you have, Your Honor, is a situation where
`someone reading Maes and seeing that it's a SOAP
`implementation would know that there's only two design models
`to follow. That's not contested in this case. There's only
`two design models; REST and SOAP.
` Therefore, since it would just be an obvious design
`choice whether someone uses REST or SOAP, information that
`was included in the SOAP message could as easily have been
`included in the URI -- in the body of a URI.
` JUDGE WEINSCHENKWEINSCHENK: Okay.
` MR. CAMACHO: And because there's only two
`alternatives -- just to confirm, our contention isn't just
`that there was something, A, was known in the art, and
`something, B, was known in the art, and then we're somehow
`trying to say, well, somebody would combine those, what our
`bigger point is, is just to confirm, is that people --
`skilled artisans would understand that these were two design
`alternatives. That there were only two, and that they were
`design alternatives. Not just that they existed, but they
`would be known alternatives.
` And that's what would provide the motivation to
`combine to someone who is reading Maes and sees, oh, the
`information is put into a SOAP. Well -- or SOAP body -- that
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`information would be put into the URI if he was a proponent
`of the REST model.
` JUDGE WEINSCHENK: Okay. How do you respond to
`patent owner's argument that Ransom is really not analogous
`art? I know you've argued that patent owner defines the
`field of endeavor too narrowly being related to telephony,
`but isn't that really what the patent's talking about?
` MR. CAMACHO: It's not. It's just a use case, and
`that's why -- I mean, one of my main responses is, is that
`what the patent does, when addressing the problem that it
`wants to address, is the problem that -- is one of the
`problems, one of the main problems, that's addressed as
`petitioner, as patent owner itself articulates on page 21 of
`the patent owner response.
` The question is, when one thinks about non-analogous
`art is, well, what type of problems would have logically
`commended a POSA's attention?
` So they describe the problem as relating to
`developing software applications that interact with and use
`older complex -- now, they say telephony network systems, but
`our contention is that anyone who is interested in looking
`for a way to develop software applications to interact with
`older complex networks would look to, for example, Maes or
`Ransom. The reason is this:
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` The '465 patent -- these two patents at issue
`actually don't have that much to do with telephony. The
`petitioner --
` JUDGE WEINSCHENK: You recite telephony throughout
`the claims.
` MR. CAMACHO: We say telephony throughout the
`claims, and that is a use case, and that is true.
` But the problem that they're trying to solve is how
`to make telephony operations as accessible and as easily to
`work with as a web application.
` So if there's only two models, for example, if
`there's only two models and you're reading Maes, and you
`think to yourself, okay, huh. I'm reading Maes -- Maes
`describes a telephony operation, I don't think there's any
`dispute there -- and one of ordinary skill in the art knows
`there's only two models, REST and SOAP, he reads -- he or she
`reads that Maes is implemented via SOAP, knows that the other
`option is REST, and then thinks, I could just implement this
`via REST, and that's exactly what Ransom is doing. Ransom is
`doing the exact same thing.
` If telephony -- if one word were swapped out at this
`page 21, "telephony" were swapped out for, say, "electrical",
`it would read, "The problem relating to developing software
`applications that interact with and use older complex
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`electrical network systems."
` If someone wants to interact with any sort of other
` old telephony or old network system, how would they do that?
` And here's why. It may sound -- it may sound odd
` that I said, hey, this patent isn't really much about
` telephony. It's because this patent doesn't describe how
` the actual telephony works.
` The actual telephony here is handled by, say,
` carriers; the Verizons, AT&T, T-Mobiles. I mean, patent
` owner contends that they practice their claims. But Twilio
` does not own any network -- or excuse me -- does not own any
` networking infrastructure at all. They don't own any
` telephony type, PSTN type. The stuff that's ac