throbber
Telephonic hearing
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` Trials@uspto.gov
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`Paper No. 11
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`571-272-7822
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`Entered: April 25, 2018
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`Page 1
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` UNITED STATES PATENT AND TRADEMARK OFFICE
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`____________
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` BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`____________
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` WESTERN DIGITAL CORPORATION, Petitioner,
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`v.
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`SPEX TECHNOLOGIES, INC.,
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`Patent Owner.
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`____________
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`Case IPR2018-00082
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`Patent 6,088,802
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`____________
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`Before LYNNE E. PETTIGREW, DANIEL N. FISHMAN, and
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`CHARLES J. BOUDREAU, Administrative Patent Judges.
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`FISHMAN, Administrative Patent Judge.
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`TELEPHONE CONFERENCE
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`MAY 9, 2018
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`12:00 P.M. (C.S.T.)
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` Job Number: 141987
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`SPEX Technologies, Inc.
`IPR2018-00082 Ex. 2006
`Western Digital Corp. v SPEX Technologies, Inc.
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` TELEPHONIC APPEARANCES:
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` FOR PETITIONER:
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` Brian Buroker, Esquire
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` Gibson, Dunn & Crutcher
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` 1050 Connecticut Avenue, NW
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` Washington, DC 20036
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` FOR PATENT OWNER:
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` Alfred Fabricant, Esquire
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` Peter Lambrianakos, Esquire
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` Vincent Rubino, III, Esquire
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` Enrique Iturralde, Esquire
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` Brown Rudnick
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` Seven Times Square
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` New York, NY 10036
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` YOUR HONOR FISHMAN: Conference call
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` regarding two cases: IPR 201800082, IPR
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` 201800084.
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` Patent Owner, you've requested this
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` call to discuss SAS issues. Please
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` proceed.
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` MR. LAMBRIANAKOS: Thank you, Your
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` Honor. This is Peter Lambrianakos for the
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` patent owner. We asked to address these
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` issues because as the Board is aware,
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` these are two of the first cases where the
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` Board has instituted on the entirety of a
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` petition, even though the petitioner only
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` met its burden as to a subset of the
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` challenged claims.
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` 82 IPR, petitioner met its burden
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` only with respect to two of the challenged
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` claims, which are claims 38 and 39 of the
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` patent, and in the 84 IPR, the petitioner
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` met its burden with respect to three
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` claims but not claim 56.
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` And so we're seeking the Board's
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` guidance on how to proceed, specifically
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` first with respect to the 82 IPR. Our
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` question there is: If the patent owner
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` elects to waive its patent owner response,
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` would the petitioner be permitted to file
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` any paper in response to the institution
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` decision?
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` And specifically, our question is
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` whether it would be permitted to present
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` arguments or evidence addressing the
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` claims as to which the petitioner did not
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` meet its burden on institution in its
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` original petition.
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` YOUR HONOR FISHMAN: Petitioner,
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` would you like to chime in?
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` MR. BUROKER: Yes, Your Honor. This
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` is Brian Buroker on behalf of the
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` petitioner. First, I'd like to say that
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` we haven't had an opportunity to really
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` consider that issue. We were asked to
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` join a conference call, status conference
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` with the Board. We asked what they wanted
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` to address, and they just said generally
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` they wanted to address the post-stat
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` issues and how the Board might react. And
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` there wasn't a specific proposal made to
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` us before this call, except two hours ago
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` in an email, that they might be waiving
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` their patent owner response.
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` And so we really haven't had a
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` chance, Your Honor, to consult with the
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` client and see what we would do, what we
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` believe an accurate position to be. So I
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` think that's my initial reaction is that
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` this call may be a bit premature and that
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` we may need to have a further
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` meet-and-confer in either a follow up
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` commission or a status conference. But in
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` general, we believe we should be entitled
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` to supplement the record in some form or
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` fashion with respect to the claims that
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` the Board found, at least in the
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` institution decision, where there had not
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` been a reasonable likelihood of showing
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` unpassability. And that either through
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` supplemental information or additional
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` briefing and expert declaration testimony,
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` if necessary, that that should be what
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` happens in these post-stat cases in which
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` the Board institutes on more claims than
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` they would have previously or where they
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` were doing partial institutions.
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` Otherwise, the institution decision
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` becomes a final decision, and that does
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` not seem to be consistent with the
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` statutory framework laid out. Again, this
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` is our preliminary view point. We haven't
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` had a chance to really consult with the
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` client on this. And I just wanted to put
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` that on the record because, you know, of
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` the timing here, we got the proposal from
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` them about two hours ago, and really want
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` more time to consider it.
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` YOUR HONOR FISHMAN: Okay. This is
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` Judge Fishman. Let me make clear first
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` and foremost, that our guidance for, in
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` the trial practice guide as well as the
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` recent guidance that was issued regarding
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` the SAS decision makes clear that the
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` parties should confer. It's a bit of a
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` waste of our time when the parties have
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` not discussed the issue and tried to work
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` it out before bringing the Board in.
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` So first and foremost, let me
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` instruct the parties, please don't
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` initiate another conference call where the
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` parties have not conferred and tried to
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` narrow the focus of the issues.
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` Responding to the question of, in
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` general, I would direct both parties to
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` the trial practice guide and the online
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` guidance regarding the SAS decision.
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` Given that our institution decision is
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` very recent, just a little over a week
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` ago, I can't perceive of any need for
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` additional time or additional pages of
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` briefing.
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` As to strategy for patent owners or
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` petitioner, we would offer no guidance to
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` either side as to what is an appropriate
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` strategy to proceed. I think, Patent
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` Owner, your question is, if you waive
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` altogether your option to file a POR, does
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` the petitioner have an opportunity to
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` reply at all, is that your question?
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` MR. LAMBRIANAKOS: That is our
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` question. Our understanding is normally a
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` petitioner would get a reply to respond to
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` issues raised in the patent owner
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` response. There would be no patent-owner
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` response. We would assume under the rules
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` that there would be no opportunity for a
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` reply since no further argument was
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` presented.
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` YOUR HONOR FISHMAN: Let me consult
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` with the panel.
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` (Pause.)
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` YOUR HONOR FISHMAN: I apologize to
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` the parties. Obviously, the SAS decision
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` has raised a number of interesting, unique
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` fact patterns that have not all been
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` addressed yet. Question for petitioner:
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` If it were the case that patent owner were
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` waiving its opportunity for a patent owner
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` response, waiving it in writing on the
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` record, would the petitioner be requesting
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` any further briefing or reply or whatever
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` form it may be?
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` MR. BUROKER: Again, Your Honor, this
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` is Brian Buroker. We would like the
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` opportunity to consult with the client
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` regarding that issue. I suspect that we
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` will narrow claims, for example, that you
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` in the initial petition decision found
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` there wasn't sufficient, you know,
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` evidence to show a reasonable likelihood
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` of a quote on unpassability, we would like
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` the opportunity to address those points at
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` a minimum so that we, you know, there is a
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` complete record on those points.
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` But, you know, that's why -- and
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` you're right, there is a lot of issues
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` that have been raised by the SAS decision,
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` and that's why we were thinking that a
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` good solution would be for the parties to
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` meet and confer. If we can't reach
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` agreement on what should happen, then we
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` could each -- either each file a motion or
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` one of us could file a motion where we
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` could set forth our arguments in writing
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` and give Your Honors an opportunity to
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` think about these issues, rather than
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` being forced to address them on a
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` conference call without having either
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` party have an opportunity to see the other
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` side's argument and respond to it in
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` writing.
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` So if we may, that's where we, you
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` know, go down the road of making the final
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` determination on whether we will or won't
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` file a response or have a right to or not,
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` we think we should be given an opportunity
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` to put something in writing in the record.
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` MR. LAMBRIANAKOS: Your Honor, this
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` is Peter Lambrianakos for the patent
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` owner. My understanding is that counsel
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` for SPEX raised the issue in a
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` meet-and-confer last week with counsel for
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` the petitioner. And the issue that was
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` raised was whether if the patent owner,
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` who is a plaintiff in district court
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` litigation, were to agree to withdraw
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` claims 38 and 39 of the 802 patent from
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` the case, therefore, to not allege
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` infringement of those claims any longer,
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` whether -- whether the petitioner would
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` agree to drop the IPR. And the answer
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` that came back was no, and that the
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` petitioner intended to submit additional
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` evidence with respect to the other claims.
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` So our understanding was that on that
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` issue, which we expected to raise here
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` today, that there has been a
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` meet-and-confer and that the petitioner
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` has already consulted with his client and
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` made a decision that it was intended to
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` present additional evidence and/or
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` arguments as to the claims as to which it
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` failed to show a substantial or reasonable
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` likelihood of success.
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` So we believe that the issue -- that
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` specific issue of whether additional
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` information was -- has to be brought
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` before the board has already been
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` conferred on and was ripe for discussion.
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` I just wanted to point out as well
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` that the timing on this call is
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` necessitated by the fact that today is the
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` deadline for a motion for rehearing, which
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` we believe may be the proper way to raise
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` certain issues that we are raising here
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` today, and we were concerned about losing
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` that deadline.
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` For that reason, while we just
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` recently finalized the strategy and the
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` issues that we wanted to bring before the
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` Board, we felt it necessary so as not to
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` lose any rights in connection with filing
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` additional papers.
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` YOUR HONOR FISHMAN: Let me confer
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` with the panel again.
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` MR. BUROKER: I have one point, Your
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` Honor. This is Brian Buroker. The
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` meet-and-confer he's referring to was
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` between litigation counsel and was in
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` context of how they were going to handle
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` the litigation going forward. It was not
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` in context with what they were going to
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` propose in this call today to Your Honors.
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` So I don't think that that's an accurate
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` representation of what the context of that
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` conversation was. I wanted to make sure
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` that was clear before getting on this call
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` today.
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` YOUR HONOR FISHMAN: Let's not argue
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` how we got to the phone call today. We
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` are in the phone call today and we will
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` work to resolve it. Again, my general
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` suggestion, guidance, request is the
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` parties should always confer before
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` requesting a conference call, period.
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` So let me just leave that standing.
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` Let me confer with the panel regarding the
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` underlying request. Hold on a moment.
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` (Pause.)
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` YOUR HONOR FISHMAN: One question.
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` Since the patent owner raised the issue,
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` does either patent owner or petitioner
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` intend to file a request for rehearing on
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` the decision to institute?
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` MR. LAMBRIANAKOS: This is Peter
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` Lambrianakos for patent owner. We were
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` going to ask today of the Board, you know,
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` in connection with the request we just
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` made, whether in the alternative, if the
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` patent owner were to withdraw from the
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` underlying litigation Claims 38 and 39 of
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` the 802 patent, such that there is no
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` controversy anymore between the patent
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` owner and petitioner concerning any claims
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` as to which the petitioner had met its
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` burden, whether we would be permitted or
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` whether the board would be receptive to a
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` motion for rehearing requesting that the
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` Board denies institution as to the
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` remaining claims.
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` So that is something we are
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` considering doing today as well as perhaps
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` a motion for rehearing with respect to the
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` issue that was presented in the reply and
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` surreply reached earlier in this
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` proceeding which concerned the issue of
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` the petitioner taking contradictory claim
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` construction positions in the district
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` court and in this proceeding.
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` MR. BUROKER: And, Your Honor, for
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` the petitioner, I believe our deadline is
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` 30 days, and we're not there yet, so we
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` haven't finalized a determination with the
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` client, whether we would seek a rehearing
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` at this point.
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` YOUR HONOR FISHMAN: Hold on a
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` moment.
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` (Pause.)
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` YOUR HONOR FISHMAN: Again, apologies
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` for the lengthy delay. We're discussing a
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` lot of subtopics here. First off, our
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` interpretation of the rules would suggest
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` that, indeed, if patent owner were to
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` waive its option for filing a patent owner
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` response, waive it in writing, that the
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` petitioner would have no basis for which
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` to file a reply, reply brief. That's the
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` first, the answer to the ultimate question
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` that patent owner was raising in this
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` discussion.
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` We also want to point out that,
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` Petitioner, you made a statement that we
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` believe is in error in accordance with our
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` rules, and that is a request for rehearing
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` we believe would be a 14-day deadline, if
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` you consider Rule 42.71(d)1. This was a
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` decision to institute with at least one
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` ground or one claim institution, rather
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` than a complete denial of institution.
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` So I believe your deadline for
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` request for rehearing would be 14 days. I
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` don't have a calendar in front of me to
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` note if that's today or tomorrow or next
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` week, but 14 days we believe would be the
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` deadline.
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` Yes, it's been pointed out to me,
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` this was not merely an institution of one
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` claim because of SAS, it was an
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` institution of all claims. So the
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` deadline is 14 days, not 30 days.
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` That said, we believe that resolves
`
` the issues raised in this phone call. We
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` will issue a very short order to
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` memorialize this order. We would also
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` request that whoever engaged the services
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` of the court reporter, please file a
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` transcript of this as soon as possible.
`
` Is there any questions?
`
` MR. BUROKER: Brian Buroker for
`
` petitioner. I'm sorry for misreading the
`
` rule. I was doing that on the fly and
`
` will take a look at the rule again in
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` light of your guidance. Thank you.
`
` YOUR HONOR FISHMAN: Anything
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` further?
`
` MR. LAMBRIANAKOS: Yes, in response
`
` to the Court's ruling, we had a follow-up
`
` question. And that is, if we waive the
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` POR, then is the Board's institution
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` decision considered part of the record,
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` you know, with respect to the Board
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` considering its institution decision as a
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` basis for its final written decision? And
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` secondly, would the waiver of the POR have
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` an effect on the timing of the final
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` written decision?
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` YOUR HONOR FISHMAN: Everything is
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` part of the record including, yes, the DI,
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` unless something gets excluded from the
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` record for some reason. But, yes, the DI
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` is part of the record. I would point out
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` to both parties, the standard of proof for
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` a final decision is different than the
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` standard of proof for the decision
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` institution. It's a preponderance of the
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` evidence in the final decision. I can't
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` tell you right now if -- if it's --
`
` whether the preponderance of evidence
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` standard has been met with regard to
`
` everything.
`
` MR. LAMBRIANAKOS: Then with respect
`
` to the timing, given the waiver of a POR
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` and the lack of any reply, would we expect
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` that the timing to final written decision
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` would be expedited?
`
` YOUR HONOR FISHMAN: Would either
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` party be requesting an oral hearing?
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` MR. LAMBRIANAKOS: Patent owner would
`
` not request an oral hearing.
`
` MR. BUROKER: Your Honor, it's a
`
` hypothetical. I'm not sure what's down
`
` the road, and we don't know what we would
`
` do in that regard, again, haven't had a
`
` chance to talk to the client about how
`
` they would want us to how to handle that
`
` issue.
`
` YOUR HONOR FISHMAN: Yes, it is a
`
` hypothetical question. I can't tell you
`
` right now that the schedule would be
`
` expedited. It's certainly a possibility.
`
` MR. LAMBRIANAKOS: Thank you very
`
` much, Your Honor.
`
` YOUR HONOR FISHMAN: Hold on, one
`
` moment. Let me consult further with the
`
` panel.
`
` (Pause.)
`
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` Telephonic hearing
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` YOUR HONOR FISHMAN: We will issue a
`
` brief order. It might be a day or two
`
` before it gets entered. Just a final
`
` reminder, that we really need the parties
`
` to confer further on issues of this nature
`
` before requesting a phone call or
`
` requesting any kind of additional briefing
`
` or filing. We don't want to work these
`
` things out in this kind of lengthy phone
`
` call. Anything further?
`
` MR. LAMBRIANAKOS: Nothing further
`
` from patent owner, Your Honor.
`
` MR. BUROKER: No, Your Honor, not
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` from petitioner at this time.
`
` YOUR HONOR FISHMAN: Okay. Thank
`
` you, everyone.
`
` MR. LAMBRIANAKOS: Thank you very
`
` much.
`
`
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`
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`Page 20
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` STATE OF MINNESOTA )
`
` COUNTY OF HENNEPIN )
`
`
`
` I hereby certify that I reported the
`
` telephone conference on the MAY 9, 2018 in
`
` Minneapolis, Minnesota, and that the witness
`
` was by me first duly sworn to tell the whole
`
` truth;
`
` That the testimony was transcribed under
`
` my direction and is a true record of the
`
` testimony of the witness;
`
` That the cost of the original has been
`
` charged to the party who noticed the
`
` deposition, and that all parties who ordered
`
` Telephonic hearing 21
`
` such copies;
`
` That I am not a relative or employee or
`
` attorney or counsel of any of the parties or a
`
` relative or employee of such attorney or
`
` counsel;
`
` That I am not financially interested in
`
` the action and have no contract with the
`
` parties, attorneys, or persons with an
`
` interest in the action that affects or has a
`
`TSG Reporting - Worldwide 800-702-9580
`
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`

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` substantial tendency to affect my
`
` impartiality;
`
` That the right to read and sign the
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` deposition was not reserved by the witness.
`
`
`
`
`
` WITNESS MY HAND AND SEAL this
`
` 9TH DAY OF MAY, 2018.
`
`
`
`
`
`
`
` ___________________________________
`
` Mari A. Skalicky RMR
`
` NOTARY PUBLIC, Hennepin County, Minnesota
`
` My commission expires 1/31/2020
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`TSG Reporting - Worldwide 800-702-9580
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`21
`
`

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