IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`DTS, INC. AND PHORUS, INC.,
`Petitioners,
`
`v.
`
`AVAGO TECHNOLOGIES GENERAL IP (SINGAPORE) PTE. LTD.,
`Patent Owner.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Case No. To Be Assigned
`Patent No. 6,684,060
`
`
`
`
`PETITION FOR INTER PARTES REVIEW OF U.S. PATENT NO. 6,684,060
`UNDER 35 U.S.C. §§ 311-319 AND 37 C.F.R. § 42.100 et seq.
`
`
`
`

`

`Docket No. 038013.0008-US01
`
`LIST OF EXHIBITS
`
`
`Description
`U.S. Patent No. 6,684,060 (the “’060 patent”)
`File History for U.S. Patent No. 6,684,060
`File History for European Patent Application No. 01303365.9-
`2225
`U.S. Patent Application Publication No. 2004/0223622
`(“Lindemann”)
`U.S. Patent No. 5,832,024 (“Schotz”)
`U.S. Patent No. 6,922,730 (“Yaple”)
`File History For U.S. Patent Application No. 09/707,616
`U.S. Provisional Application No. 60/110,705
`U.S. Patent No. 5,946,343 (“Schotz 343”)
`Declaration of Stuart Lipoff
`Curriculum vitae of Stuart Lipoff
`
`Exhibit
`Ex. 1001
`Ex. 1002
`Ex. 1003
`
`Ex. 1004
`
`Ex. 1005
`Ex. 1006
`Ex. 1007
`Ex. 1008
`Ex. 1009
`Ex. 1010
`Ex. 1011
`
`- i -
`
`

`

`Docket No. 038013.0008-US01
`
`TABLE OF CONTENTS
`I.
`Introduction ......................................................................................................... 1
`II. Mandatory Notices (37 C.F.R. § 42.8(a)(1)) ....................................................... 4
`A.
`Real Party-In-Interest (37 C.F.R. § 42.8(b)(1)) ....................................... 4
`B.
`Related Matters (37 C.F.R. § 42.8(b)(2)) ................................................. 5
`C.
`Lead and Backup Counsel (37 C.F.R. § 42.8(b)(3)) ................................ 5
`D.
`Service Information (37 C.F.R. § 42.8(b)(4)) .......................................... 6
`III. Fees (37 C.F.R. § 42.103) ................................................................................... 6
`IV. Requirements for IPR Under 37 C.F.R. § 42.104 .............................................. 6
`A. Grounds for Standing (37 C.F.R. § 42.104(a)) ........................................ 6
`B.
`Citation of Prior Art .................................................................................. 7
`C.
`Claims and Statutory Grounds (37 C.F.R. §§ 42.104(b)(1) &
`(b)(2)) ........................................................................................................ 7
`Person of Ordinary Skill in the Art .......................................................... 8
`Unpatentability of the Construed Claims (37 C.F.R.
`§42.104(b)(4)) ........................................................................................... 8
`F.
`Supporting Evidence (37 C.F.R. §42.104(b)(5)) ..................................... 8
`Summary of the ‘060 Patent ................................................................................ 9
`A. Overview of the Technology .................................................................... 9
`B.
`Overview of the ‘060 Patent ..................................................................... 9
`C.
`Challenged Claims .................................................................................. 13
`D. U.S. Prosecution History ........................................................................ 13
`E.
`European Patent Application No. 01303365 ......................................... 15
`F.
`Claim Construction (37 C.F.R. §42.104(b)(3)) ...................................... 15
`
`D.
`E.
`
`V.
`
`- ii -
`
`

`

`Docket No. 038013.0008-US01
`
`B.
`
`VI. There is a Reasonable Likelihood that Petitioners Will Prevail as to at
`Least One Claim of the ‘060 Patent .................................................................. 16
`A.
`Prior Art .................................................................................................. 16
`1.
`Lindemann (Ex. 1004) ................................................................. 16
`2.
`Schotz (Ex. 1005) ......................................................................... 19
`3.
`Yaple (Ex. 1006) .......................................................................... 20
`Ground I: Claims 1-2, 4, 6–8, 10, 12–14, 16, 18–21, 23–27, 29
`are Unpatentable as Obvious over Lindemann ...................................... 21
`1.
`Independent Claims 1 and 7 ........................................................ 21
`2.
`Independent Claim 13 .................................................................. 36
`3.
`Independent Claim 19 .................................................................. 41
`4.
`Independent Claim 24 .................................................................. 44
`5.
`Dependent Claim 25: “The system as recited in claim 24 further
`comprising: a plurality of speaker modules, located on said
`premises, that receives said encoded audio channel and decodes
`respective ones of said plurality of audio channels therefrom.” . 56
`Dependent Claims 2, 8, 14, 20, 26: “wherein said power source is
`a line power source for said [premises / theater]” ....................... 57
`Dependent Claims 4, 10, 16, 21, 27: “wherein [said speaker
`module / each of said plurality of speaker modules / said digital
`audio receiver/decoder] further includes a channel selector,
`[coupled to said digital audio receiver/decoder / coupled to each
`of said plurality of digital audio receiver/decoder ], that identifies
`[an audio channel / one of said plurality of audio channels] to be
`decoded from said [stream / encoded audio channel]” /
`“identifying an audio channel to be decoded from said stream” 57
`Dependent Claims 6, 12, 18, 23, 29: “wherein said [encoded]
`audio channel conforms to a standard selected from the group
`consisting of: [two-channel stereo,] [four-channel quadraphonic,]
`
`6.
`
`7.
`
`8.
`
`- iii -
`
`

`

`Docket No. 038013.0008-US01
`
`E.
`
`Dolby® Stereo, Dolby® Digital 5.1 Surround, DTS™ Surround
`5.1, PAC Stereo Audio, and MP-3 Stereo Audio.” ..................... 60
`C. Ground II: Claims 5, 11, 17, 22, 28 are Unpatentable as Obvious
`over Lindemann Alone or in Combination with Yaple .......................... 61
`1.
`Dependent Claims 5, 11, 17, 22, 28: “wherein said stream
`conforms to a Bluetooth™ standard” / “wherein said digital
`encoded audio transmitter wirelessly transmits said encoded
`audio channel according to a BluetoothTM standard” .................. 61
`D. Ground III: Claims 3, 9 and 15 are Unpatentable as Obvious Over
`Lindemann in view of Schotz ................................................................. 66
`1.
`Dependent Claims 3, 9 and 15: “wherein said digital audio
`encoder/transmitter includes an analog to digital converter that
`generates said audio channel in digital form.” ............................ 66
`Ground IV: Claims 1-3, 6, 19-20, and 23 are Unpatentable as
`Obvious over Schotz ............................................................................... 71
`1.
`Independent Claim 1 .................................................................... 71
`2.
`Independent Claim 19 .................................................................. 85
`3.
`Dependent Claims 2 and 20: “wherein said power source is a line
`power source for said premises” .................................................. 86
`Dependent Claim 3: “wherein said digital audio
`encoder/transmitter includes an analog to digital converter that
`generates said audio channel in digital form.” ............................ 87
`Dependent Claims 6 and 23: “wherein said audio channel
`conforms to a standard selected from the group consisting of:
`two-channel stereo, four-channel quadraphonic, Dolby® Stereo,
`Dolby® Digital 5.1 Surround, DTS™ Surround 5.1, PAC Stereo
`Audio, and MP-3 Stereo Audio.” ................................................ 88
`VII. Conclusion ......................................................................................................... 89
`
`
`4.
`
`5.
`
`- iv -
`
`

`

`Docket No. 038013.0008-US01
`
`TABLE OF AUTHORITIES
`
` Page(s)
`
`Cases
`Dynamic Drinkware, LLC v. National Graphics, Inc.,
`800 F.3d 1375 (Fed. Cir. 2015) .......................................................................... 17
`Eaton Corp. v. Rockwell Int'l Corp.,
`323 F.3d 1332 (Fed. Cir. 2003) .......................................................................... 42
`Fresenius USA v. Baxter Int’l, Inc.,
`582 F.3d 1288 (Fed. Cir. 2009) .......................................................................... 61
`KSR Int’l. Co. v. Teleflex Inc.,
`550 U.S. 398 (2007) ...................................................................................... 65, 70
`Trivascular, Inc. v. Samuels,
`812 F.3d 1056 (Fed. Cir. 2016) .......................................................................... 15
`Statutes and Regulations
`35 U.S.C. § 102(b) ........................................................................................... 7, 9, 19
`35 U.S.C. § 102(e) ................................................................................... 7, 10, 17, 20
`35 U.S.C. § 103 ................................................................................................ 7, 8, 16
`35 U.S.C. § 119(e)(1) ............................................................................................... 17
`35 U.S.C. § 314(a) ................................................................................................... 16
`37 C.F.R. §42.100(b) ............................................................................................... 15
`
`
`
`
`- v -
`
`

`

`Docket No. 038013.0008-US01
`
`I.
`
`INTRODUCTION
`DTS, Inc. and Phorus, Inc. (“Petitioners”) petition for Inter Partes Review
`
`(“IPR”) seeking cancellation of claims 1-29 of U.S. Patent No. 6,684,060 (Ex.
`
`1001, “the ‘060 Patent”), assigned to Avago Technologies General IP (Singapore)
`
`Pte. Ltd.
`
`The ‘060 Patent relates generally to “a digital wireless premises audio
`
`system and method of operation thereof.” Ex. 1001, 1:6-9. More specifically, the
`
`‘060 Patent is concerned with wireless audio systems capable of playing digital
`
`multi-channel surround sound on speakers that are wirelessly connected to, e.g., a
`
`DVD or CD player (for example, on left, right, center, left surround and right
`
`surround speakers). Id., 1:10-65; 2:42-51. The ‘060 Patent acknowledges that
`
`audio systems with wired speakers were available to play digital multi-channel
`
`surround sound from DVDs and CDs. Id. However, the ‘060 Patent teaches that
`
`long speaker wires required by such systems “may create adverse impedance
`
`matching situations for an amplifier/driver thereby affecting fidelity.” Id., 2:5-7.
`
`Further, the ‘060 Patent teaches that it may be physically difficult to run wiring
`
`through existing walls, floors and ceilings. Id., 2:8-14. Accordingly, the ‘060
`
`Patent purports to disclose a digital wireless audio system “that provides increased
`
`flexibility and reduces distortion.” Id., 2:16-17; 2:42-51.
`
`- 1 -
`
`

`

`Docket No. 038013.0008-US01
`
`Claim 1 is representative of each independent claim of the ‘060 Patent and is
`
`directed to a “digital wireless premises audio system” comprising (i) “a digital
`
`audio encoder/transmitter…that accepts a plurality of audio channels in digital
`
`form, encodes said plurality of audio channels into a stream of digital data and
`
`wirelessly transmits said stream about said premises” and (ii) “a plurality of
`
`speaker modules…including, in series, a digital audio/receiver/decoder, an audio
`
`amplifier and a speaker that receives said stream, decodes respective ones of said
`
`plurality of audio channels…converts said respective ones of said plurality of
`
`audio channels to analog form” and amplifies the audio channel for playback. Id.,
`
`7:59-8:8.
`
`The ‘060 Patent, however, does not purport to invent digital audio formats or
`
`multi-channel audio. Id., 1:22-55; 3:30-39 (referring to existing Dolby Digital 5.1
`
`Surround and DTS Surround 5.1, for example). The ‘060 Patent also does not
`
`purport to invent wirelessly transmitting a stream of digital data. Id., 5:4-9
`
`(“Transmission of the audio bit stream may be accomplished using transmission
`
`technology, standards and formats that are proprietary, special, customized or
`
`publicly available. A publicly available technology is BlueTooth…”).
`
`Nor does the ‘060 Patent disclose the first wireless audio surround sound
`
`system that encodes audio channels from a CD/DVD into a single bit stream for
`
`playback on wireless speakers.
`
` U.S. Patent Application Publication No.
`
`- 2 -
`
`

`

`Docket No. 038013.0008-US01
`
`2004/0223622 (Ex. 1004, “Lindemann”), for example, titled “Digital Wireless
`
`Loudspeaker System,” discloses a transmission device for transmitting digital data
`
`and multiple wireless speaker modules for receiving the data. Ex. 1004, [0011].
`
`Similar to the ’060 Patent, the transmission device receives multichannel digital
`
`audio data from a CD or DVD, generates a stream of digital data, and wirelessly
`
`transmits the stream to speakers in a home theater system. Id. The speakers
`
`receive the stream of digital data, decode a single channel from the data, and
`
`convert the selected channel to analog format to drive the speaker. Id., [0011],
`
`[0070], Figs. 1A-1B.
`
`Similarly, U.S. Patent No. 5,832,024 (Ex. 1005, “Schotz”) discloses a
`
`“Digital Wireless Speaker System” having a digital radio frequency (RF)
`
`transmitter and one or more digital RF receivers coupled to speakers to create a
`
`surround sound experience. Ex. 1005, Abstract, 5:33-37, 13:48-50. As with the
`
`’060 Patent and Lindemann, Schotz discloses a transmitter that receives a digital
`
`audio signal from a CD player, encodes the digital audio signal into a serial bit
`
`stream of digital data and wirelessly transmits this stream to one or more receivers,
`
`which decode the stream and convert the received data into analog format for
`
`driving a speaker. Id., 5:5-38, Fig. 1.
`
`To the extent not disclosed in Lindemann or Schotz, U.S. Patent No.
`
`6,922,730 (Ex. 1006, “Yaple”) discloses a wireless audio system in which an audio
`
`- 3 -
`
`

`

`Docket No. 038013.0008-US01
`
`host and an audio bridging device communicate via a Bluetooth network. Ex.
`
`1006, 3:20-5:3.
`
`As discussed in detail below, Lindemann, Schotz, and Yaple demonstrate that
`
`digital wireless audio systems were known and that Claims 1-29 of the ‘060 Patent
`
`are unpatentable.
`
`II. MANDATORY NOTICES (37 C.F.R. § 42.8(a)(1))
`A. Real Party-In-Interest (37 C.F.R. § 42.8(b)(1))
`The Petitioners are DTS, Inc. and Phorus, Inc. Xperi Corporation is also a
`
`real party-in-interest. Additionally, out of an abundance of caution, Petitioners
`
`further identify co-respondents named in the ITC proceeding, captioned Certain
`
`Wireless Audio Systems and Components Thereof, Inv. No. 337-TA-1071,
`
`including Paradigm Electronics Inc., MartinLogan, Ltd., Definitive Technology,
`
`LLC, Polk Audio, LLC, Wren Sound Systems, LLC, and McIntosh Laboratory,
`
`Inc., solely to the extent that the Patent Owner contends that these entities should
`
`be named real parties-in-interest in the requested IPR. Petitioners do so to avoid
`
`the potential expenditure of resources to resolve such a challenge. No unnamed
`
`entity is funding, controlling, or otherwise has an opportunity to control or direct
`
`this Petition or Petitioners’ participation in any resulting IPR. Also, Petitioners
`
`note that Xperi Corporation has several affiliated companies and each of these
`
`entities agrees to be estopped under the provisions of 35 U.S.C. § 315 as a result of
`
`- 4 -
`
`

`

`any final written decision in the requested IPR to the same extent that Petitioners
`
`Docket No. 038013.0008-US01
`
`are estopped.
`
`B. Related Matters (37 C.F.R. § 42.8(b)(2))
`U.S. Patent No. 6,684,060 (“the ‘060 Patent”) is currently the subject of
`
`litigation in the Central District of California, captioned Broadcom Limited et al. v.
`
`DTS, Inc. (Civil Action No. 2:17-cv-05935). In addition, the ‘060 Patent is the
`
`subject of an investigation under 19 U.S.C. §1337 before the International Trade
`
`Commission (ITC), captioned Certain Wireless Audio Systems and Components
`
`Thereof, Inv. No. 337-TA-1071.
`
`C. Lead and Backup Counsel (37 C.F.R. § 42.8(b)(3))
`Petitioners
`designate Christopher Eppich
`(Reg. No.
`
`52,868,
`
`ceppich@cov.com) as lead counsel and Laura Muschamp (Reg No. 45,693,
`
`lmuschamp@cov.com) as back-up counsel, Covington & Burling LLP, 1999
`
`Avenue of the Stars, Los Angeles, CA 90067 (postal and hand delivery),
`
`telephone: 424-332-4800, facsimile: 424-332-4749, and Andrea G. Reister (Reg.
`
`No. 36,253, areister@cov.com) and David Garr
`
`(Reg. No. 74,932,
`
`dgarr@cov.com) as back-up counsel, Covington & Burling LLP, One CityCenter,
`
`850 Tenth Street, NW, Washington, DC 20001 (postal and hand delivery),
`
`telephone: 202-662-6000, facsimile: 202-662-6291.
`
`- 5 -
`
`

`

`Docket No. 038013.0008-US01
`
`Service Information (37 C.F.R. § 42.8(b)(4))
`D.
`Service information is provided in the designation of counsel above. A
`
`power of attorney is submitted with this Petition. Counsel for Petitioners consents
`
`to service of all documents via electronic mail at the email addresses listed above
`
`and at DTS-Avago-IPR@cov.com.
`
`III. FEES (37 C.F.R. § 42.103)
`The undersigned authorizes the Office to charge $30,400 ($9,000 request
`
`fee, $1,800 request excess claims fee, $14,000 post-institution fee, and $5,600
`
`post-institution excess claims fee) to Deposit Account No. 50-0740 for the fees set
`
`forth in 37 C.F.R. § 42.15(a) for this Petition for IPR. The undersigned further
`
`authorizes payment for any additional fees that might be due in connection with
`
`this Petition to be charged to the above referenced Deposit Account.
`
`IV. REQUIREMENTS FOR IPR UNDER 37 C.F.R. § 42.104
`A. Grounds for Standing (37 C.F.R. § 42.104(a))
`Pursuant to 37 C.F.R. § 42.104(a), Petitioners certify that the ‘060 Patent is
`
`available for IPR and that Petitioners are not barred or estopped from requesting an
`
`IPR challenging the ‘060 Patent on the grounds identified in the present petition.
`
`- 6 -
`
`

`

`B. Citation of Prior Art
`Exhibit
`Reference
`
`Docket No. 038013.0008-US01
`
`Publication
`
`Availability
`
`or Filing Date
`
`as Prior Art1
`
`Ex. 1004 U.S. Patent Application Publication
`
`December 3,
`
`§ 102(e)
`
`No. 2004/0223622 (“Lindemann”)
`
`1998
`
`Ex. 1005 U.S. Patent No. 5,832,024
`
`November 3,
`
`§ 102(b)
`
`(“Schotz”)
`
`1998
`
`Ex. 1006 U.S. Patent No. 6,922,730
`
`December 21,
`
`§ 102(e)
`
`(“Yaple”)
`
`1999
`
`
`
`C. Claims and Statutory Grounds (37 C.F.R. §§ 42.104(b)(1) &
`(b)(2))
`The relief requested by Petitioners is that claims 1-29 of the ‘060 Patent be
`
`found unpatentable and cancelled from the ‘060 Patent on the grounds below.
`
`Ground Claims
`
`Basis
`
`I
`
`1–2, 4, 6–8, 10,
`
`Under 35 U.S.C. § 103 as obvious over Lindemann
`
`12–14, 16, 18–
`
`21, 23–27, 29
`
`
`1 All references to §§ 102 and 103 of the Patent Statute refer to the pre-AIA versions
`
`of those statutory provisions.
`
`- 7 -
`
`

`

`Docket No. 038013.0008-US01
`
`II
`
`5, 11, 17, 22, 28 Under 35 U.S.C. § 103 as obvious over Lindemann
`
`alone or in combination with Yaple
`
`III
`
`3, 9, 15
`
`Under 35 U.S.C. § 103 as obvious over Lindemann
`
`and Schotz
`
`IV
`
`1–3, 6, 19–20,
`
`Under 35 U.S.C. § 103 as obvious over Schotz
`
`23
`
`
`
`Person of Ordinary Skill in the Art
`D.
`A person of ordinary skill in the art of the ’060 Patent at the time of the
`
`alleged invention (“POSA”) would have had at least a four year undergraduate
`
`degree in electrical engineering or a computer science-related discipline and at
`
`least two years of experience in the field of wireless communication technology or
`
`a closely related field. Ex. 1010, ¶47.
`
`E. Unpatentability of the Construed Claims (37 C.F.R. §42.104(b)(4))
`An explanation of how claims 1-29 of the ’060 Patent are unpatentable
`
`under the statutory ground(s) identified above, is provided in Section VI, below.
`
`Supporting Evidence (37 C.F.R. §42.104(b)(5))
`F.
`An Exhibit List with the exhibit numbers and a brief description of each
`
`exhibit is set forth above. The relevance of the evidence to the challenge raised,
`
`- 8 -
`
`

`

`Docket No. 038013.0008-US01
`
`including identifying specific portions of the evidence that support the challenge,
`
`are provided below in the form of explanatory text.
`
`V.
`
`SUMMARY OF THE ‘060 PATENT
`A. Overview of the Technology
`Wireless premises audio systems have existed since at least the introduction
`
`of wireless infrared stereo headphones in the late 1980s. Ex. 1010, ¶24. With new
`
`FCC rulemaking in 1991 permitting the use of frequency bands above 900 MHz
`
`for unlicensed short range wireless communication, several wireless stereo audio
`
`systems, including those from Datawave and Recoton, were introduced in the early
`
`1990s. Ex. 1010, ¶21-27. In parallel with this development in wireless home audio
`
`systems, there were several advancements in digital audio, as Dolby introduced its
`
`5.1 channel surround sound format, “Dolby AC-3” or “Dolby Digital 5.1,” in late
`
`1987, and the DTS 5.1 format was released by 1993. Ex. 1010, ¶28-35. Thus, by
`
`the late 1990s, the foundations of wireless home audio systems and digital
`
`multichannel audio formats had been developed. Ex. 1010, ¶36.
`
`B. Overview of the ‘060 Patent
`The ’060 patent, entitled “Digital Wireless Premises Audio System and
`
`Method of Operation Thereof,” issued on January 27, 2004 from Application No.
`
`09/547,381 (the “’381 Application”), filed April 11, 2000. Thus, documents
`
`published before April 11, 1999 are prior art under 35 U.S.C. § 102(b). U.S.
`
`- 9 -
`
`

`

`Docket No. 038013.0008-US01
`
`patents that issued from, or publications of, an application filed in the United States
`
`before April 11, 2000 are prior art under 35 U.S.C. § 102(e).
`
`As discussed in the Introduction, the ’060 Patent relates generally to a digital
`
`wireless premises audio system which includes a digital encoder/transmitter and a
`
`plurality of digital receivers/decoders. An example of the ’060 Patent’s system is
`
`depicted in Figure 1:
`
`
`
`Ex. 1001, Fig. 1
`
`As depicted in Figure 1, a DVD or CD provides a “plurality of audio
`
`channels” to the audio system. Id., 4:20-21. These audio channels “may include
`
`several formats” including “two-channel stereo, four-channel quadraphonic,
`
`Dolby® Digital Stereo, Dolby® Digital 5.1 Surround, DTS® Surround 5.1, PAC
`
`Stereo Audio, or MP-3 Stereo.” Id., 4:22-29. While the audio from a DVD or CD
`
`- 10 -
`
`

`

`Docket No. 038013.0008-US01
`
`is already in digital form, the specification notes that the digital audio
`
`encoder/transmitter (DAE/T) may be equipped with an analog-to-digital converter
`
`(ADC) “front end” to allow the DAE/T to accept audio signals from “conventional
`
`analog equipment.” Id., 4:48-57.
`
`The DAE/T accepts a plurality of audio channels from, e.g., a Dolby Digital
`
`5.1 signal, and “encodes these six separate audio channels into a single digital
`
`audio bit stream for wireless transmission.” Id., 4:48-50. This encoding is
`
`accomplished
`
`in a “time division multiplexed fashion.”
`
` Id., 4:58-66.
`
`Alternatively, the DAE/T may accept an existing bit stream (e.g., “a Dolby®
`
`Digital bit stream”) and “reformat it for transmission to the speaker modules.” Id.,
`
`4:66-5:3.
`
`Once encoded, the bit stream is sent to a wireless transmitter “using
`
`transmission technology, standards and formats that are proprietary, standards and
`
`formats that are proprietary, special, customized or publicly available.” Id., 5:4-7.
`
`The ‘060 Patent identifies Bluetooth transmission as a “publicly available
`
`technology.” Id., 5:7-19.
`
`Each of the speaker modules is coupled to a power source and receives the
`
`wireless transmission from the DAE/T having the encoded bit stream of digital
`
`data. Id., 5:45-48. As seen in Figure 2, each speaker module includes a channel
`
`- 11 -
`
`

`

`Docket No. 038013.0008-US01
`
`selector, “digital audio receiver/decoder (DAR/D)”, an audio power amplifier,
`
`speaker, and power source.
`
`Ex. 1001, Fig. 2
`
`
`
`Specifically, the ‘060 Patent discloses that the wireless transmission from
`
`the DAE/T is received by the receiver of the DAR/D accepts the encoded data
`
`stream and formats it for presentation to the decoder. Ex. 1001, 7:6-9. A user
`
`identifies an audio channel to be decoded from the data stream via channel selector
`
`234. Id., 6:25-31. The decoder 245 inspects and selects the audio channel
`
`designated for the speaker according to user input received from the channel
`
`selector 234, and then formats the audio data for presentation to the D/A converter.
`
`Id., 7:9-16. D/A converter 250 which converts the digital data stream to an analog
`
`signal. Id., 7:17-20. The analog signal is processed by the power amplifier, which
`
`drives the attached speaker. Id., 7:20-22.
`
`- 12 -
`
`

`

`Docket No. 038013.0008-US01
`
`C. Challenged Claims
`All 29 Claims are at issue in this Petition. Independent claims 1 and 13 are
`
`directed to a “digital wireless premises audio system” and a “theater audio
`
`system,” respectively, wherein they each recite common limitations, including a
`
`digital audio encoder/transmitter and a plurality of speaker modules that receive
`
`and decode an encoded audio stream before converting an audio channel to analog
`
`form for playback by a speaker. Independent claim 7 is directed to a method of
`
`distributing a plurality of audio channels about a premises, including steps
`
`corresponding to limitations of claims 1 and 13. Independent claim 19 is directed
`
`to a receiver/decoder module for use with a digital wireless premises audio
`
`encoder/transmitter, and again recites similar limitations as claims 1 and 13.
`
`Independent claim 24 is directed to another digital wireless premises audio system
`
`and is similar to claim 1, with the modification that the transmitter in Claim 24
`
`accepts an “encoded audio channel” and thus omits the encoding in the transmitter.
`
`Each independent claim is followed by a substantially similar set of
`
`dependent claims.
`
`D. U.S. Prosecution History
`The Examiner allowed the claims of the ’060 Patent only after multiple prior
`
`art rejections and Applicant’s narrowing claim amendment.
`
`The Examiner first rejected all claims as either anticipated or made obvious
`
`- 13 -
`
`

`

`Docket No. 038013.0008-US01
`
`by U.S. Patent No. 6,064,699 (“Law”). In overcoming Law, Applicant argued that
`
`“Law does not receive data in digital form, the audio encoder receives analog data
`
`and may then convert the analog signal to a digital signal or merely frequency
`
`modulates the analog signal.” Ex. 1002, 218.
`
`The Examiner rejected all claims a second time as anticipated or made
`
`obvious by U.S. Patent No. 6,466,832 (“Zuqert”). Id., 237-243. In response,
`
`Applicant amended the claims to change (i) “an audio channel” to “a plurality of
`
`audio channels” and (ii) “decodes said audio channel” to “decodes respective ones
`
`of said plurality of audio channels.” Id., 278-293. Applicant distinguished Zuqert
`
`as disclosing “a transmitter that transmits two continuous streams of packets in two
`
`distinct frequency bands to each operating receiver of a speaker, where the packets
`
`are addressed to two separate speakers in an interlaced order.” Id., 288. In contrast,
`
`and referencing each of the independent claims, Applicant argued its “claimed
`
`invention, however, encodes all of the audio channels into a single digital stream and
`
`transmits only one digital stream.” Id., 289.
`
`The Examiner allowed the claims, stating “None of prior art [sic] teaching
`
`‘accepting a plurality of audio channels in digital form; and encodes said plurality
`
`of audio channels into a stream of digital [sic] and wirelessly transmits said stream
`
`about said premises’ as cited in the claims.” Id., 295. The ’060 Patent issued on
`
`January 27, 2004.
`
`- 14 -
`
`

`

`Docket No. 038013.0008-US01
`
`More than a year later, on March 29, 2005, Applicant submitted an
`
`Information Disclosure Statement disclosing the prior art identified in a European
`
`Search Report for the European counterpart to the ’060 Patent. Id., 307-308. This
`
`disclosure lists six prior art references, including U.S. Patent No. 5,946,343 to
`
`Schotz et al., a continuation of Schotz (Ex. 1005). Id. There is no indication the
`
`PTO considered these references. Id.
`
`European Patent Application No. 01303365
`E.
`On April 4, 2001, Applicant submitted a patent application at the European
`
`Patent Office (EPO), claiming priority to the ’060 Patent Application. Ex. 1003,
`
`187-193. The description, drawings, and initial claims were identical to those in
`
`the ‘060 Patent Application. Id., 118-135, 138-141; Ex. 1002, 8-40, 46-49. A
`
`European Search Report was mailed on February 17, 2005, identifying six prior art
`
`references, including the continuation of Schotz. Ex. 1003, 111-113. Relying on
`
`the cited prior art, the EPO rejected all claims as lacking novelty and/or inventive
`
`step. Id., 98-106. Applicant did not appeal the decision refusing the application
`
`following oral proceedings, thus abandoning the application. Id., 14-22.
`
`F. Claim Construction (37 C.F.R. §42.104(b)(3))
`An unexpired claim subject to IPR is given its “broadest reasonable
`
`construction in light of the specification of the patent in which it appears.” 37
`
`C.F.R. §42.100(b); Trivascular, Inc. v. Samuels, 812 F.3d 1056, 1061-62 (Fed. Cir.
`
`- 15 -
`
`

`

`Docket No. 038013.0008-US01
`
`2016). Under this standard, and for purposes of this Petition only, Petitioners
`
`submit that the claims of the ’060 Patent should be interpreted consistent with the
`
`broadest reasonable interpretation of their ordinary and customary meaning.
`
`VI. THERE IS A REASONABLE LIKELIHOOD THAT PETITIONERS
`WILL PREVAIL AS TO AT LEAST ONE CLAIM OF THE ‘060
`PATENT
`The subject matter of claims 1-29 of the ‘060 Patent is disclosed in the prior
`
`art. As set forth in Sections VI.A-VI.E, the references and combinations utilized in
`
`Grounds I-IV render obvious each of claims 1-29 pursuant to 35 U.S.C. § 103 and
`
`provide a reasonable likelihood that the Petitioners will prevail on at least one
`
`claim. 35 U.S.C. § 314(a).
`
`Prior Art
`A.
`Paragraphs 20-36 of the Lipoff Declaration, Ex. 1010, describe the state of
`
`the art of wireless audio transmission and speaker systems in the 1999 time frame.
`
`As that discussion and the prior art make clear, by April 1999, the purported
`
`innovation of the ’060 patent was well known.
`
`Lindemann (Ex. 1004)
`1.
`Lindemann is the publication of Application No. 09/707,616 (“’616
`
`Application). The ’616 Application was filed on April 6, 2001 as a division of
`
`Application No. 09/452,904 (“’904 Application), filed on December 1, 1999, and
`
`was amended to claim priority to U.S. Provisional Application No. 60/110,705
`
`(“’705 Provisional”), filed December 3, 1998 (to which the ’904 Application also
`
`- 16 -
`
`

`

`Docket No. 038013.0008-US01
`
`claims priority). Ex. 1007, 131-133, 171. Notably, the Abstract, Figures, and
`
`Description in Lindemann are identical to those in the ’705 Provisional. Cf. Exs.
`
`1004, 1008. Accordingly, the claims of Lindemann are supported by, and entitled
`
`to, a filing date of December 3, 1998 under 35 U.S.C. § 119(e)(1) and § 102(e).
`
`See Dynamic Drinkware, LLC v. National Graphics, Inc., 800 F.3d 1375, 1378
`
`(Fed. Cir. 2015) (discussing § 119(e)(1)); Ex. 1010, ¶141-147.
`
`Lindemann discloses a “digital wireless loudspeaker system,” including an
`
`audio transmission device for transmitting digital data and wireless speakers for
`
`receiving the data and broadcasting sound. Ex. 1004, [0011]. Similar to the ’060
`
`Patent, the transmission device accepts digital audio data selected from either a CD
`
`or DVD. Id. As in the ’060 Patent, the transmission device of Lindemann
`
`generates a stream of digital data from the input multichannel digital audio data. Id.
`
`This stream is then wirelessly transmitted to a plurality of speakers:
`
`- 17 -
`
`

`

`Docket No. 038013.0008-US01
`
`
`
`Lindemann, Ex. 1004, Fig. 1B
`
`‘060 Patent, Ex. 1001, Fig. 2
`
`
`
`(excerpt)
`
`Further, similar to the speaker modules in the ’060 Patent, the system inside
`
`each of the wireless loudspeakers of Lindemann receives and decodes the stream
`
`transmitted by the transmission device, and converts the decoded audio channel to
`
`analog form in order to drive the attached speaker. Ex. 1004, [0011].
`
`- 18 -
`
`

`

`Docket No. 038013.0008-US01
`
`
`
`
`
`Lindemann, Ex. 1004, Fig. 1B
`
`‘060 Patent, Ex. 1001, Fig