throbber
Telephone Hearing
`
`Case No. IPR2017-02188
`
`October 15, 2018
`
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` UNITED STATES PATENT AND TRADEMARK OFFICE
` ____________
` BEFORE THE PATENT TRIAL AND APPEAL BOARD
` ____________
` Caterpillar Inc.
` Petitioner
` v.
` Wirtgen America, Inc.
` Patent Owner
` ____________
` Case No. IPR2017-02188
` U.S. Patent No. 9,656,530
`---------------------------------------------------
`
` TELEPHONE HEARING
`
` Monday, October 15, 2018
` BEFORE: KEVIN CHERRY, JUDGE
` 12:01 p.m. to 12:29 p.m.
` (All parties appeared telephonically)
`
`Reported by: Judy Martin
`
`202-220-4158
`
`Henderson Legal Services, Inc.
`www.hendersonlegalservices.com
`
`CATERPILLAR EXHIBIT 1158
`CATERPILLAR v. WIRTGEN
`IPR2017-02188
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`Page 1 of 33
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` Telephone Hearing
`
`Case No. IPR2017-02188
`
`October 15, 2018
`
`2
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` A P P E A R A N C E S
`DAVID K. MROZ, ESQUIRE
`JOSHUA L. GOLDBERG, ESQUIRE
`CRAIG WALTER, ESQUIRE
`OF: Finnegan, Henderson, Farabow, Garrett, &
` Dunner, LLP
` 901 New York Avenue, N.W.
` Washington, D.C. 20001
` (202) 408-4000
` david.mroz@finnegan.com
` joshua.goldberg@finnegan.com
`
`Counsel for the PETITIONER
`
`SETH R. OGDEN, ESQUIRE
`OF: Patterson Intellectual Property Law PC
` 1600 Division, Suite Number 500
` Nashville, Tennessee 37203
` (615) 242-2400
` sro@iplawgroup.com
`Counsel for the PATENT OWNER
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`202-220-4158
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`www.hendersonlegalservices.com
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`Page 2 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
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` P R O C E E D I N G S
` JUDGE CHERRY: Petitioner, will you make your
` appearance?
` MR. MROZ: Sure. It's David Mroz from
` Finnegan, and I have two of my colleagues with
` me -- Josh Goldberg from Finnegan and Craig Walter
` also from Finnegan.
` JUDGE CHERRY: Great, thank you, Mr. Mroz.
` Patent owner.
` MR. OGDEN: Yes, this is Seth Ogden,
` O-G-D-E-N, on behalf of patent owner, Wirtgen
` America, Inc.
` JUDGE CHERRY: Mr. Mroz, you requested the
` phone call. Can you let us know what -- let me
` know what's going on?
` MR. MROZ: Sure. So we've had previous motion
` practice whenever Wirtgen was filing their patent
` owner response and they sought discovery from a
` related ITC proceeding between the parties and we
` tried to work it out.
` It didn't quite work, so we briefed the issue
` and the result was a protective order was put in
` place in this proceeding, and we produced a subset
` of the documents requested. It was pages from a
` number of different documents. I think it ended up
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`202-220-4158
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`www.hendersonlegalservices.com
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`Page 3 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
`
`October 15, 2018
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` being in the 40s somewhere.
` So the takeaway is that we now have a
` protective order in place. We've produced
` documents from the ITC proceeding, that were
` Caterpillar confidential, and Wirtgen used them in
` their analysis.
` We now -- the shoe's on the other foot, so to
` speak. We have our reply brief coming up and there
` is just one document from Wirtgen that was produced
` in the ITC case that we want to use. It's only a
` 43-page document. We want to rely on it to rebut a
` mischaracterization in their petition, and that
` mischaracterization was on page 1.
` First sentence of the last paragraph there it
` says, Patent owner was the first to recognize the
` advantages of monitoring the lifting positions of a
` road construction machine's lifting column to
` permit an operator to select the desired frame
` orientation for a particular Wirtgen operation.
` So that's an important statement in this
` petition and this document goes a long way in
` helping us rebut that. There's no other way to get
` this information, because it's -- without getting
` into the detail, because it hasn't been produced in
` this proceeding yet, it's a slide show presentation
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`202-220-4158
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`www.hendersonlegalservices.com
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`Page 4 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
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` and it involves some kind of Wirtgen's knowledge of
` prior art material.
` JUDGE CHERRY: Mr. Ogden, what is your
` response?
` MR. OGDEN: Thank you, Your Honor. I just
` want to address Factor 1 of the Garmin factors. I
` think that's the one that really applies here and
` the requirement that the discovery request be
` looking for something useful.
` I know the PTAB has described useful as
` meaning more than relevant or admissible, but
` favorable in substantive value to contention of a
` party moving for discovery.
` Here the problem is the document that Cat is
` requesting isn't relevant to any ground of
` unpatentability, let alone useful as the PTAB has
` defined that term and there's a couple reasons.
` Without going into the confidential aspect of
` the document, I can just say that it is a slide
` presentation comparing a Wirtgen machine to that of
` a third-party competitor and it basically compares
` the machines to show why the Wirtgen machine is
` superior.
` So here are the reasons that this doesn't rise
` to useful information. First Wirtgen's inspection
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`202-220-4158
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`www.hendersonlegalservices.com
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`Page 5 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
`
`October 15, 2018
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` of a third-party machine lacks any relevance to any
` of the grounds of unpatentability asserted in the
` petition.
` We did raise a copying issue in our response
` relating to Caterpillar's copying of the claimed
` feature after tearing down a Wirtgen machine, but
` that we inspected a third-party machine has nothing
` to do with Caterpillar's actions relating to
` copying Wirtgen's commercial product --
` JUDGE CHERRY: If something was known -- but
` if something was known in the prior art and they
` copied it -- just cause they copied it from you if
` they copied a known thing in the art, doesn't
` that -- doesn't that negate the relevance of
` copying to the obviousness inquiry?
` MR. OGDEN: I agree with that, Your Honor, but
` what I would say here is there's no evidence of
` which I'm aware that suggests that the third-party
` machine that Wirtgen actually inspected included
` any of the features claimed in the patent at issue
` or even features relating thereto.
` Even assuming that the third-party machine
` that Wirtgen inspected had those features, nothing
` is discussed in the document that relates to those
` claimed features.
`
`202-220-4158
`
`Henderson Legal Services, Inc.
`www.hendersonlegalservices.com
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`Page 6 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
`
`October 15, 2018
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` I honestly don't think Caterpillar's counsel
` can make a colorful argument that anything in there
` does relate to the claimed features.
` I think that further evidence of that is that
` Caterpillar essentially refused to meaningfully
` reduce the number of pages they want from this
` document and that's because none of the pages are
` specifically relevant in any way, so they can't
` choose any pages that they want. They said they
` would not put in the final page until the end, so
` that's really the issue.
` If there was something in here that was
` relevant, then we probably wouldn't be having this
` discussion because -- I agree the shoe is on the
` other foot, but this is not a comparable situation
` because there's nothing in this document that
` relates to the claimed features.
` JUDGE CHERRY: Mr. Mroz.
` MR. MROZ: Sure. I have to be careful.
` Mr. Ogden is at liberty to get into the details
` more than I am because it's his party's documents,
` so I have one hand tied behind my back here, but
` I'll do my best.
` The document in terms of the inspection and
` the pages that we want to rely on, we really want
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`202-220-4158
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`Henderson Legal Services, Inc.
`www.hendersonlegalservices.com
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`Page 7 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
`
`October 15, 2018
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` to rely on this two different ways: One to show
` the extent of the inspection, and that requires
` relying on the entire document at a broad level,
` because it's only 43-page document, and then -- we
` do have specific pages we want to rely on in
` addition to that that we plan to use in conjunction
` with other documents that do show relevance to the
` patented features.
` I can't get much more into it than that, but
` these will help us rebut -- that statement that I
` mentioned on page 1 and I know that Mr. Ogden
` disagreed with me on the relevance of it, but our
` position is it's not just relevant, it's highly
` relevant.
` It is relevant to copying too -- and you
` actually hit the nail on the head, Your Honor, when
` you talked about public features being available
` and preventing a copying defense. So that's the
` other reason we want to rely on it, but we're
` hesitant to get too much into what the features are
` in the document. So it's highly relevant. If this
` comes down to a relevance issue, it's highly
` relevant.
` JUDGE CHERRY: Mr. Ogden, how can I -- how can
` we really -- how can we really determine -- I mean,
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`202-220-4158
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`www.hendersonlegalservices.com
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` Telephone Hearing
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`Case No. IPR2017-02188
`
`October 15, 2018
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` he's made a case that it's -- why it would be
` relevant. I mean, without seeing the document, how
` can we really make that determination?
` MR. OGDEN: I think that's a fair point. I'll
` be honest, I'm surprised that he would continue to
` push relevance, and I note that he did not mention
` that he believes that anything that's specifically
` related to the claimed features is there.
` They want -- I think the first point he made
` was he wants to show the extent of our inspection,
` and I don't see how in any way, shape, or form the
` extent of our inspection is relevant to their
` copying. I think what he would like to argue to
` you is everybody looks at each other's stuff, so
` what we did is okay, but I don't think that's
` relevant to the issues at hand.
` I agree with you it's difficult without seeing
` the document and so maybe, you know, if you guys
` end up deciding this, you'll come to find out that
` there is nothing in this document that's relevant
` to the claimed features.
` But I would also point out that this is the
` first time that he's ever suggested to me that
` there might be certain pages that they need to rely
` on here, and we haven't had a meaningful discussion
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`202-220-4158
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`www.hendersonlegalservices.com
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`Page 9 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
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` about whether that might be okay. Because when I
` asked this, and I have the email, "specifically
` identify the pages", he was unable to do so and
` that's a little -- I find that a little frustrating
` to be caught on this call with him now alleging
` there are relevant pages.
` JUDGE CHERRY: Mr. Ogden, you guys don't play
` well together, we've kind of established that --
` MR. OGDEN: Right.
` JUDGE CHERRY: -- in this case, so I don't --
` I don't want to hear this tit for tat stuff.
` MR. OGDEN: Fair enough, Your Honor.
` JUDGE CHERRY: Do you understand, Mr. Mroz,
` with that caution that I just put out there?
` MR. MROZ: I do, Your Honor, sure.
` Sorry, I didn't -- I'm sorry, Your Honor, I
` didn't hear what you said for that last part.
` JUDGE CHERRY: I'm just saying like -- I just
` warned Mr. Ogden about the tit for tat. With that
` warning applying to you as well, what did you want
` to say?
` MR. MROZ: Sure. I just want to correct the
` record. I don't want to get into what Mr. Ogden
` just said, given your advice, but we disagree with
` that characterization. We had a meet and confer
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`202-220-4158
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`Page 10 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
`
`October 15, 2018
`
`11
` over the phone where we did discuss specific pages.
` In terms of the patented feature, that
` statement I read from page 1, Patent owner was the
` first to recognize the advantages of monitoring the
` lifting positions of a road construction machine
` lifting column to permit an operator to select a
` desired frame orientation of a particular Wirtgen
` operation, that goes to the heart of the claims and
` it's a mischaracterization in our view. I know
` that Mr. Ogden disagrees, but I think we're
` entitled to prove our side of the case.
` JUDGE CHERRY: I guess why wouldn't that be
` relevant to the state of the art, Mr. Ogden?
` MR. OGDEN: Well, I think what you'll see when
` you see this document is that there is nothing in
` this document about anything on either machine, the
` Wirtgen machine or the third-party machine,
` monitoring the lifting position on the road
` construction machines lifting columns to permit an
` operator to select a desired frame orientation for
` a particular Wirtgen operation.
` I see they have some other public documents
` that might have relevance to that, but not this CBI
` document. Without you seeing it you make a point,
` it's difficult to know what's in the document.
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
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` JUDGE CHERRY: What is so confidential about
` this document that -- just the mere fact that
` Wirtgen inspected this machine?
` MR. OGDEN: It's a document that's generated
` that demonstrates how Wirtgen business people go
` about differentiating their machines from other
` machines.
` Wirtgen would like to protect all confidential
` information and keep it confidential whenever it
` can, so I'm advocating on the behalf of that
` confidentiality.
` JUDGE CHERRY: I mean, I guess if he's saying
` that they're going to put this together with other
` documents and you've admitted that there are --
` there may be other public documents that bear on
` this and they want to -- and they think that this
` is a part of that -- that that will help make the
` public documents more meaningful, why doesn't that
` meet the threshold of the first factor of the
` Garmin test?
` MR. OGDEN: Because I don't think this
` document does anything when it's put together with
` anything else, especially the thing -- let me just
` briefly raise the context of what's going on here.
` They want to file some exhibits related to a
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`202-220-4158
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`www.hendersonlegalservices.com
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
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` third-party machine and they're going to start to
` demonstrate the state of the art, but they're
` trying to gap fill back for the lack of what they
` needed to have in their prima facia case.
` The reason this is an issue is that when they
` come to depose our expert, he relied on
` confidential testimony from a third-party employee
` when he gave his opinion in the ITC investigation
` parallel to this.
` The concern here is they want to use this
` asking questions and he's going to have to
` differentiate in his head what he can and can't say
` knowing that there's third-party confidential
` information that might assist in our case, and he's
` not going to be able to do this without implicating
` issues with protective order third-party
` information.
` My concern is that the more that they put in
` of this sort of thing, and this particular thing
` that I don't believe is relevant, it's going to
` make this a mess when we get around to the
` deposition, and so that's another reason I'm trying
` to, you know, be agreeable about what's relevant
` but keep out what's not relevant so that we don't
` have all this noise around everything when we have
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`202-220-4158
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`Page 13 of 33
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` Telephone Hearing
`
`Case No. IPR2017-02188
`
`October 15, 2018
`
`14
` to answer these questions that are going to then be
` essentially derived from third-party confidential
` information, so that's just a second issue with
` this.
` JUDGE CHERRY: I guess that kind of raises a
` concern with me that there's an incomplete record.
` MR. OGDEN: In terms of if you don't have this
` particular document, the record would be
` incomplete?
` JUDGE CHERRY: Well, it concerns me that there
` is questions that may be relevant that he can't
` answer.
` MR. OGDEN: I believe that that will be the
` case.
` JUDGE CHERRY: I mean, if it's completely
` irrelevant, then why would he be even concerned
` about these questions?
` MR. OGDEN: Let me back up. The relevance
` issue is going to come in with these other
` documents --
` JUDGE CHERRY: It's really hard for me to
` totally understand what -- what you're talking
` about.
` MR. OGDEN: Right. Right. So I believe --
` you know, he can answer the questions about the
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
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` Wirtgen document, but when they interrelate with
` these other public documents those are the ones
` where all the information that was explained in the
` public documents occurred in a confidential
` deposition.
` Now, we're between a rock and a hard place
` where he needs to explain why this document of
` Wirtgen's is not relevant, but in order to do so he
` would mostly likely need to reveal stuff that's
` based on third-party confidential information.
` So now we're in a big mess and that's really a
` big part of this issue. It's almost impossible for
` me to explain it to you without revealing all that
` information, so...
` MR. MROZ: There's a protective order in place
` at this point and we can -- if the deposition is
` the issue, we can -- we worked on this case for a
` long time together, opposing counsel, and we can
` sort through the confidentiality issue at the
` deposition.
` I don't think that should be a reason to
` preclude us from relying on what we believe is
` highly relevant evidence in supporting our case.
` In fact rebutting the positions that Wirtgen
` was able to make, because the documents we gave
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`202-220-4158
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
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` them were confidentially in this IPR.
` MR. OGDEN: Your Honor, I just believe we're
` handicapped if my expert can't rely on this
` third-party confidential information he knows to
` essentially rebut what I expect them to argue.
` This document introduces all of this together and
` it's going to come --
` JUDGE CHERRY: I have to take your word for it
` that that's not relevant. You're --
` MR. OGDEN: That's true.
` JUDGE CHERRY: -- that if -- if the panel sees
` the document that that will be somehow misled,
` because it does seem relevant; but there's some
` other secret information that you have that would
` render it irrelevant, but you can't show it to us.
` MR. OGDEN: I think you'll see right off that
` this particular document they're seeking does not
` have any relevance to anything that's going on in
` this case, not to any ground of unpatentability
` that's at issue in this case and not to the copying
` allegations in this case.
` Like you said, I can't tell you -- I can't
` tell you why that is completely without showing you
` the document so you can see for yourself.
` JUDGE CHERRY: I'm going to have to take
`
`202-220-4158
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`Page 16 of 33
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` Telephone Hearing
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`Case No. IPR2017-02188
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`October 15, 2018
`
`17
` Mr. Mroz' word on -- he's represented to us that it
` is relevant to the statement you made on page 1 of
` the patent owner response.
` Do you have a response to that contention?
` MR. OGDEN: My response to that contention is
` the only thing I can tell you is nothing in the
` document relates to the advantages of monitoring
` the lifting positions in a road construction
` machine's lifting columns to permit an operator to
` select a desired frame orientation for a particular
` Wirtgen operation. There's just nothing about that
` in this document.
` JUDGE CHERRY: Mr. Mroz, what do you say to
` that?
` MR. MROZ: It's just not true. There's a
` feature described in there that if used in
` conjunction with other -- of the documents we have,
` without going into anything more than that, it is
` relevant. We just disagree.
` MR. OGDEN: One thing I would suggest is it
` would be very helpful if Mr. Mroz wanted to
` actually point me to the page, or pages, that he's
` talking about, I might be willing to forego any
` kind of issue about briefing, if that's going to be
` an issue, and just get this in with the pages that
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`October 15, 2018
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`18
` they want. I don't know because I haven't seen the
` pages and I don't -- he hasn't told me what they
` are.
` I could be wrong, I could be wrong. I just
` don't see anything in here. Maybe I could see his
` point of view if I knew what he was trying to say.
` MR. MROZ: At a minimum the first page is the
` one we talked about on the phone when we had a meet
` and confer, which is WA-ITC_0028023.
` MR. OGDEN: I'm sorry, Dave, I'm having a
` problem pulling this up. If you have it, I'd ask
` that you can shoot it to me, that would be helpful.
` MR. MROZ: Sure.
` MR. OGDEN: I got it. What was the last three
` digits of the page number that you referenced?
` MR. MROZ: One second, we're pulling it up
` again. We closed it out to email it to you. It's
` 023.
` MR. OGDEN: I guess the one I have is
` different. Oh, I see, gotcha.
` MR. MROZ: That's just one example of pages
` that's used with other documents to be connected to
` the relevant features.
` MR. OGDEN: I don't see it at all. To be
` honest, I just don't even see how you can assert
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`October 15, 2018
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` that's relevant.
` MR. MROZ: I just can't get into the document
` unfortunately. There's a picture on there --
` MR. OGDEN: I understand. I understand. I
` just -- we just disagree, that's all there is to
` it.
` MR. MROZ: Okay.
` JUDGE CHERRY: Well, it sounds like we're not
` going to reach an agreement on this call. It
` sounds like what we need is some briefing.
` Petitioner, when can you file your motion?
` MR. MROZ: Within a week?
` JUDGE CHERRY: Sure. October 22nd?
` MR. MROZ: Yes, that works.
` JUDGE CHERRY: Mr. Ogden, when do you want to
` oppose?
` MR. OGDEN: I think I should be able to do
` that -- week and a half to have opposition in by
` the close of business on the 25th.
` JUDGE CHERRY: On October 25th?
` MR. OGDEN: Yes.
` MR. MROZ: Your Honor, I just realized this
` will be relevant -- this could be relevant for a
` deposition. It's I think set for November 1st, so
` we can do it faster than a week. We can -- we can
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` do it by Friday if that works.
` MR. OGDEN: I can do by Wednesday the 24th if
` that's sufficient. If you let me know when you
` need it so that we can get a decision in time for
` the deposition so that Mr. Mroz has everything he
` needs, I'll make it happen.
` MR. MROZ: In the last, did we give a -- did
` do we have a reply?
` MR. OGDEN: I think we did.
` JUDGE CHERRY: You need a reply, Mr. Mroz?
` MR. MROZ: I don't think so. I mean, if it's
` going to put Your Honors in a bind -- well, maybe
` just like a one-page reply the day after is
` something we can do, that would be fine.
` JUDGE CHERRY: How many pages do you want for
` the motion?
` MR. MROZ: I think we only need five, given
` this has been briefed -- this issue has been
` briefed so much in the past.
` We just confirmed there was no reply brief
` last time, but we're happy to take a one-page reply
` brief or two-page reply brief.
` (Simultaneous talking)
` JUDGE CHERRY: I'm sorry?
` MR. OGDEN: I said that would be okay with me
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`October 15, 2018
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` if they need it.
` JUDGE CHERRY: Sure, a one-page reply. Five
` pages is okay for you, Mr. Ogden?
` MR. OGDEN: Sure, that's sufficient. I'll try
` to keep it to three.
` JUDGE CHERRY: Perhaps the parties can talk a
` little bit more and maybe reach an agreement. I
` mean, I've got to say given the discussion that
` we've had, it seems like something that we would
` have to see probably in the context of the reply
` brief to be able to make a final -- to be able to
` evaluate it ourselves.
` But, you know, we'll let -- Mr. Ogden is
` within his rights to not produce it, so we'll go
` through the motion route.
` MR. OGDEN: Dave, I would like to consult with
` the other attorneys and possibly have another phone
` call within the next day or two days before you get
` your brief written and see if we can't work it out.
` MR. MROZ: Sounds good.
` JUDGE CHERRY: Do the parties have anything
` else they want to discuss?
` MR. MROZ: One thing Mr. Goldberg just
` recommended is, if it would make it easier,
` Your Honor, we could do an in-camera review of the
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`Case No. IPR2017-02188
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`October 15, 2018
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` document.
` JUDGE CHERRY: What do you think about that,
` Mr. Ogden?
` MR. OGDEN: That would be fine with me.
` JUDGE CHERRY: I'm always reluctant to do
` these things, because again it's subject to the
` protective order of ITC and I don't think that an
` in-camera review -- given that it's business
` confidential information and ITC, I'm a little
` reluctant to have you sending into us and -- I
` mean, unless Mr. Ogden -- I guess you can waive the
` confidentiality with respect to that?
` MR. OGDEN: Yes, Your Honor. I think -- we
` already have a protective order in this case, but I
` think the wording is pretty close to what's in the
` ITC. So I would think that that would make a
` filing of this confidentially with the board for
` the board's review acceptable.
` Dave, do you have a view on that?
` MR. MROZ: No, that's fine with us. You would
` have to -- that would be on your side to waive
` that.
` MR. OGDEN: Yeah, I can do that.
` JUDGE CHERRY: Would you just file -- would
` you file it -- I don't know, I've not had anybody
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`October 15, 2018
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` do in-camera review. I don't know what -- maybe
` Mr. Goldberg is more familiar.
` Have you just sent it to us in an email or did
` you file it in the -- file it on the docket?
` MR. GOLDBERG: This is Josh Goldberg. I've
` never actually done it, I've just heard of it being
` done --
` JUDGE CHERRY: I don't have any -- I've heard
` of it, I didn't -- I don't remember the details,
` though.
` MR. GOLDBERG: I think as a practical matter
` it could be accomplished by us filing it as either
` board's eyes only or parties and board's eyes only.
` Then in the event that the motion for additional
` discovery was not granted, then it could be
` expunged from the record.
` JUDGE CHERRY: I like that approach.
` Is that okay with you, Mr. Ogden?
` MR. OGDEN: Yes, that would be fine with me.
` I guess the question here is: Do you prefer to
` have the full briefing around it or -- I mean, I've
` said my piece and I don't know if Mr. Mroz wants to
` say more, but I can stand on what we've discussed
` today and be satisfied just with you guys taking a
` look, but I'm happy to put briefing around it if
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` Telephone Hearing
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`October 15, 2018
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` that would assist the board.
` JUDGE CHERRY: Well, we need a motion to do
` things. We don't just do things. We're going to
` have a motion. Especially cause Judge Grossman and
` Judge Daniels aren't here, I think they'd benefit
` from, even though -- I want to remind the parties
` to file -- Mr. Mroz, please file the transcript as
` an exhibit once you receive it from the court
` reporter.
` MR. MROZ: Certainly.
`

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