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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`COMCAST CABLE COMMUNICATIONS, LLC,
`Petitioner,
`
`v.
`
`PROMPTU SYSTEMS CORPORATION,
`Patent Owner.
`____________
`
`Case IPR2018-00342 (Patent RE44,326)
`Case IPR2018-00343 (Patent RE44,326)
`Case IPR2018-00344 (Patent 7,047,196)
`Case IPR2018-00345 (Patent 7,047,196)
`___________
`
`Record of Oral Hearing
`Held: January 28, 2019
`____________
`
`
`
`
`Before JAMESON LEE, ROBERT L. KINDER, and
`ALEX S. YAP, Administrative Patent Judges.
`
`
`
`
`
`

`

`
`
`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
`
`APPEARANCES:
`
`ON BEHALF OF THE PETITIONER:
`
`
`JAMES L. DAY, ESQ.
`DANIEL CALLOWAY, ESQ.
`Farella, Braun & Martel
`Russ Building
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`
`
`ON BEHALF OF THE PATENT OWNER:
`
`
`JACOB A. SCHROEDER, ESQ.
`JOSH GOLDBERG, ESQ.
`DANIEL F. KLODOWSKI, ESQ.
`Finnegan, Henderson, Farabow, Garrett & Dunner, LLP
`Stanford Research Park
`3300 Hillview Avenue, 2nd Floor
`Palo Alto, California 94304-1203
`
`
`
`
`The above-entitled matter came on for hearing on Monday, January
`
`28, 2019, commencing at 2:00 p.m., at the U.S. Patent and Trademark
`Office, 600 Dulany Street, Alexandria, Virginia.
`
`
`
`
`
`
`
`
`2
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`

`

`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
`
`
`
`P R O C E E D I N G S
`- - - - -
`JUDGE KINDER: Please be seated. All right, good afternoon,
`everyone. I am Judge Kinder, and with me today in Alexandria is Judge
`Jameson Lee, and remote from California is Judge Alex Yap.
`If we could have your appearance. For Petitioner?
`MR. DAY: Good afternoon, Your Honor. James Day, Farella,
`Braun & Martel, for Petitioner Comcast. I am joined by my partner, Daniel
`Callaway.
`JUDGE KINDER: Okay. For Patent Owner?
`MR. SCHROEDER: Good afternoon, Your Honor. Jacob
`Schroeder from Finnegan on behalf of Promptu. And with me at counsel
`table is Cory Bell and lead counsel Joshua Goldberg as well.
`JUDGE KINDER: All right. This is a proceeding for Comcast
`Cable Communications, LLC as the Petitioner, versus Promptu Systems
`Corporation, the Patent Owner. This afternoon we're going to cover IPR
`2018-00342, 343, involving U.S. Patent Number -- it's a reissue, so
`RE44326. And also proceedings IPR2018-00344 and 345, involving U.S.
`Patent Number 7,047,196.
`Before we went off for lunch, I asked the parties to consider
`whether the Board could use transcripts from the morning proceedings in
`some areas where there's overlapping. So I'll ask Petitioner's counsel first
`if -- did the parties reach any agreement?
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
`
`
`MR. DAY: Yes, Your Honor. We agree that the transcripts from
`this morning's proceeding could be used in these IPRs and that the transcript
`from this afternoon could be used in this morning's IPRs. Just to be clear,
`our understanding is that means we can't touch on some topic this afternoon
`just because it was touched on earlier today.
`JUDGE KINDER: That is correct. It's really for our benefit how
`we can write the cases up and what we can cite to. So just for the record,
`this morning's proceedings were IPR2018-00340 and 341. So those are -- so
`the parties have agreed to allow interchangeability for the Board when
`writing up the final written decisions to cite from transcripts from either
`proceeding.
`MR. SCHROEDER: Yes, Your Honor.
`JUDGE KINDER: Or either transcript, I should say. Excuse me.
`All right. This afternoon for these four proceedings, I think we've
`given the parties a total of 75 minutes of argument time. The parties may
`allocate that time at their discretion over the four cases, but again, 75
`minutes total. Petitioner will go first. Patent Owner will then have the
`opportunity to respond. Petitioner may reserve rebuttal time to respond to
`the Patent Owner arguments, and then the Patent Owner, again, is allowed a
`brief surrebuttal if it decides to reserve time.
`As I mentioned this morning, no new issues or arguments for
`rebuttals, just covering what has already been addressed. And as I
`mentioned this morning, too, Judge Alex Yap is remote, so please mention
`the transcript -- or excuse me, the demonstrative slide number or exhibit
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`number when you're presenting something so he can follow and we can also
`have a clean record of that.
`Are there any questions at this time from either party?
`MR. DAY: No, Your Honor.
`MR. SCHROEDER: No, Your Honor.
`JUDGE: All right. Petitioner, how much time would you like to
`reserve for your reply?
`MR. DAY: Your Honor, I'd like to reserve 10 minutes, again,
`reserve whatever time is left of the 75.
`JUDGE KINDER: So I'll split you 65 and 10, approximately.
`MR. DAY: That would be great. Thank you.
`JUDGE KINDER: All right.
`MR. SCHROEDER: Your Honor, we would like to reserve 10
`minutes for our surrebuttal as well.
`JUDGE KINDER: All right. Whenever you're ready, Mr. Day.
`MR. DAY: All right. Good afternoon, Your Honors. This
`afternoon, we're talking about two patents in four different IPRs, it's the '326
`patent and the '196 patent. I'd like to start by talking about the '196 patent.
`It's the earlier issued patent. It's at issue in the 344 and 345 patent
`proceedings.
`Let's talk about this patent. It's based on a different specification.
`It's not related to the patent that we talked about earlier today, the '538. It's a
`different specification. And the '196 patent talks about a method system --
`I'm on slide 3 -- just talking about the abstract. It says system for
`recognizing over a back channel from multiple users, to recognize the voice
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`commands from multiple users in a network attainable over a cable TV
`and/or video.
`The focus here is really on what's happening. The patent refers to a
`wireline node, what's happening at the wireline node. That's the head-end.
`The wireline node would be the head-end.
`And we asserted grounds of obviousness based on Julia as the
`primary prior art reference, also Murdock as primary prior art reference, and
`I'll start with Julia. We talked about Julia earlier today. So I'm now at slide
`6. Here the preamble talks a bit about what Claim 1 is covering. It says,
`they're using a back channel containing multiplicity of identified speech
`channels from a multiplicity of user sites.
`The language is a little bit convoluted, but what it's talking about is
`the back channel, that's the upstream channel in a cable network. It goes
`from the set-top box back out to the head-end. And what it is talking about
`is at the head-end, you're going to receive that upstream channel back
`channel, and over that channel, you can have voice commands coming from
`lots of different set-top boxes. That's what we're talking about.
`Then presenting to a speech processing system at the wireline
`node. That's what's presented to the wireline node for speech processing and
`then this network can deliver television or video.
`We talked earlier today about Julia, it's a voice-controlled TV
`system. On slide 7, we talk or we cite some of Julia where it says per
`alignment well suited for the home entertainment setting, has a voice remote
`control, a set-top box. The signal is sent out to this remote server 108 that
`we talked about earlier, and that remote server 108, we have voice data
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`processed by request to process in legend 300. You take the voice request,
`you apply a speech recognition processing to figure out what it is the user
`asked for.
`And then on slide 8, we cite some of Julia saying once the desired
`information has been retrieved so you understand the request, you retrieve
`what they've asked for, you transmit it back to the set-top box for displaying
`on the display device 112, and shows it to them on their television.
`Again, here on slide 9, we show Figure 1A that we talked about
`earlier, and now it talks about a multiplicity of user sites. Julia explicitly
`says that multiple users have their own claim input device. That's the remote
`control. And so multiple users can send simultaneous voice commands. It's
`not shown in Figure 1A, but Julia explicitly says, even though it's not shown
`there, there can be lots of different, you know, people, like you see in Figure
`1A, all sending their own voice commands simultaneously or otherwise.
`So we get past the preamble and you get to this first element, and
`this is where we have some dispute. The claim starts with a step, receiving
`said back channel to create and receive back channel. And first, what's back
`channel? It's the upstream channel in a cable network. Julia explicitly says
`you can implement this invention in a cable network.
`And our expert in this case is Dr. Schmandt. So the upstream
`channel at 106, that's the back channel. On slide 12, we cite his testimony
`setting out that point. It goes through and says here's how Julia works.
`And let me move ahead a little bit. The dispute here is that Patent
`Owner is saying that this receiving step requires two different things, you
`receive the back channel and then you do this second thing, you create some
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`new thing called receive back channel. And that's not what the claim means,
`and in our reply declaration, Dr. Schmandt addresses why that's not a claim.
`Let me explain.
`What it's saying is you receive the back channel, that's all of these
`voice commands coming over the back channel that are received by the
`remote server, that is the receiving step. And now we're going to refer to
`that as the received back channel, as opposed to some other back channel.
`JUDGE KINDER: So it's more timing. Is that right?
`MR. DAY: I think it's more labeling.
`JUDGE KINDER: Labeling?
`MR. DAY: This is similar, if you look at Claim 7, it has a step --
`it's a dependent claim that has a step of identifying a user to create and
`identify the user. It's really just saying we've identified somebody, now let's
`call them the identified user. What this is saying is, we're going to receive
`all these signals over a back channel and we're going to do this receiving
`step. Now we're going to refer to that as the received back channel.
`JUDGE KINDER: And that's after the receiving step is complete?
`MR. DAY: Yes, yes, exactly. Now, the next step is going to act
`on that thing that we're now calling the received back channel. That's how
`we read the claim. Dr. Schmandt talked about that. We responded in our
`reply declaration to this argument. It's pretty clear, the received back
`channel is created in the sense that it has been received by the speech
`processing system. It's not creating some new thing, there's no support for
`that in the specification, there's no thing described as the received back
`channel that's somehow different.
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
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`When Patent Owner cites to Dr. Chaiken to say that he says our
`product practiced these claims, he didn't say anything about creating a
`received back channel. This is -- it's simpler than that. You have to receive
`the back channel, you have to receive these voice commands over the back
`channel.
`Now, from now on in the claim, we're going to call that the
`received back channel.
`JUDGE LEE: While we're on the subject of oddities of language,
`that starts with in many of these communications patents, you will see the
`language "receiving a channel" or "sending a channel." To a lay person, that
`would be odd, because you're really talking about sending information on a
`channel or receiving information on a channel, but is the fact that you see
`typically in these communications patents, you do see recitations of
`receiving a channel and sending a channel. That means just sending
`information over a channel. That's typically called sending a channel, and
`receiving information on a channel is called receiving a channel.
`MR. DAY: That's certainly the way we understand these claims,
`but the language is a bit stilted. The way that Dr. Schmandt understood the
`claim language based on the specification and the way he analyzed it was to
`say receiving the back channel, that's when you're receiving the spoken voice
`commands from lots of different people that are sent on this upstream
`channel when the head-end unit or in this case the wireline node receives --
`when it's receiving those voice commands, that is performing the step of
`receiving the said back channel.
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
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`JUDGE LEE: So that's how you read it, receiving a channel means
`received the information on the channel?
`MR. DAY: On the channel, yes.
`JUDGE LEE: And there is no dispute between the parties on that
`aspect of sending and receiving a channel?
`MR. DAY: I can't speak for the Patent Owner, Your Honor. I
`don't believe that's a dispute. That's exactly the way that the patent talks
`about what happens. You speak into a voice remote, that's sent over a back
`channel to a speech recognition processing located somewhere else. That's
`the -- you know, it's the voice command that's being sent.
`JUDGE LEE: That's the reading, then, once you've received
`information on a channel, that that becomes a received channel. So I don't
`know what it's missing, if they don't dispute that receiving a channel means
`receiving information of a channel.
`MR. DAY: Again, I can't speak for the Patent Owner. I think
`that's -- that is the reading that we have applied to this patent. Dr. Schmandt
`is very clear about that. I think perfectly clear in his declaration initially to
`the extent there was any confusion, is very clear in his reply to say that's
`exactly the way that he analyzed the claims.
`The back channel -- so here on slide 15, in his reply declaration,
`the received back channel is not data, it is -- it's the upstream
`communications channel that's carrying the signal. So it's the back channel
`is the thing that's carrying the commands. It's not more complicated than
`that.
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
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`Quickly, I just want to point out, again, I made this point earlier
`today. The Patent Owner's expert didn't try to define the terms of the '196
`patent. He didn't try to define the term "received back channel." So when
`they say it means something in particular, it's really just lawyer argument.
`When they're trying to define the term "back channel." And again, I asked
`him, did you look at the prior art and independently analyze it? That wasn't
`part of his job.
`And so when you go to weigh the evidence on one side, you've got
`an expert who's done a thorough job analyzing the patent, the claims, and
`also looking at the prior art and comparing the two, mapping the two, and
`has provided a very detailed analysis. And on the other hand, you've got
`somebody who basically says I'm not convinced by your argument, but I
`haven't tried to understand what the claims mean and I haven't tried to
`understand what the prior art is disclosing.
`We get into these next few steps. The next step is partitioning.
`Now, we've just received basically a pipe full of a lot of different voice
`commands from a lot of different people. And the partitioning step is you've
`got to disaggregate that. You've got to take it apart so you can try to
`recognize each individual request. And Julia says first that you can have
`simultaneous requests, but Julia says, look, a practitioner would know how
`to handle simultaneous requests. A practitioner would understand queueing
`and multitasking and how to handle this. But Julia doesn't describe how to
`do it.
`
`So we combine Julia with some other prior art. And here's, on
`slide 21, we point to some testimony by our expert who says basically what I
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`just said. And he provides an example, you could multiplex together a
`bunch of commands and then demultiplex them at the head-end. That's one
`example that would be partitioned. There's no dispute on that.
`When we get to slide 22, we talk about this combination of Julia
`with first we talked about Nazarathy. That's a hybrid fiber coaxial cable
`network, the same thing we're talking about a cable network. It has upstream
`and downstream channels. It can use TDMA, which is a form of
`multiplexing. WDM or TDM multiplexing can be used to send signals
`upstream from lots of different cable modems to the head-end.
`And then if you look at slide 23, the quote at the bottom says, "The
`operations of TDM or WDM multiplexing are undone at the HDE," that
`means head-end, "by corresponding demultiplexers." So Nazarathy tells you
`how to do the partitioning step.
`Quigley also tells you how to do the partitioning step. On slides 24
`and 25 we quote some language talking about using timing to basically
`sequence the commands so that the head-end can interpret which voice
`command it's acting on next.
`And again, there's really no dispute that this partitioning step is
`disclosed by Quigley. There are two different combinations. Our expert
`talked about how Quigley and Nazarathy would be combined with Julia.
`Here on slide 26, I think the main point here is he's offering
`opinions, but they're grounded directly in Julia, Nazarathy, Quigley, he's not
`just asserting in a cursory fashion, Dr. Schmandt is looking at these prior art
`references and offering an opinion based on specific things in the patents.
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
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`Basically the point here on slide 26 is he's saying a person of
`ordinary skill who read Julia and wanted further detail about how you handle
`the simultaneous input from lots of different set-top boxes, you would
`naturally consider these type of patents, Nazarathy and Quigley.
`And here on slide 27, we have the motivation to combine, what's
`the benefit. I'll say that the discussion in this declaration is significantly
`longer than the bit I've quoted here, and it all comes down to his opinion
`that's at the bottom of slide 27 that this is just combining prior art elements
`according to their -- according to known methods to yield predictable results,
`which we know is evidence of obviousness.
`We get down to the processing step. Processing means now you've
`taken apart all these various voice commands that have come in over the
`back channel, you've sort of separated them out in a partitioning step, now
`you process them. You turn them into something you can recognize. So it
`comes in as an acoustic audio signal, and you have to do some voice
`recognition processing. Julia talks about that, that's what Julia is all about.
`It says, the spoken request is initially received at the remote server, it's raw
`acoustic voice data, and that voice data is received from the user, then it's
`interpreted in order to understand the user's request.
`So that's the processing step. We get down to this responding step,
`I don't think there's any dispute on. Julia says, once I figure out what the
`voice command is, I find the content the user has asked for and I send it back
`to them so that they can display it on their television.
`And we talked about this earlier today, I think, again, there's no
`need to speak to it.
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
`
`
`So again, what we've got is the combination of Julia with
`Nazarathy, the combination of Julia with Quigley discloses each of the
`elements of Claim 1.
`Now, I want to talk about dependent Claim 5. So it depends from
`Claim 2, there's no disputes in Claim 2. So I want to focus in on Claim 5.
`This is on slide 32. So Claim 5 has two steps. There's an assessing step and
`a billing step. In the assessing step, the first thing you do is you assess the
`voice command, the thing you've just interpreted, and then based on that,
`you crate a financial consequence. So you assign a price or something like
`that. And then the next step is you bill the user for whatever it is they just
`bought.
`
`Now, Patent Owner's argument is based on a false premise that in
`our petition we never showed or even asserted that Gordon or Banker
`disclosed both steps, the assessing step and the billing step. And that's
`incorrect.
`On slide 32, I have language that goes from our petition that says,
`yes, it starts by saying Julia alone renders Claim 5 obvious, but then it says,
`in addition, Julia can be combined with either Banker or Gordon to disclose
`both the assessing step and the billing step.
`Now, what you see here is, this is later in our brief, and it refers
`back to an earlier discussion in connection with Murdock. An earlier
`discussion of Gordon and Banker, it cites you to that section in our petition.
`It also cites to two paragraphs where Dr. Schmandt addressed these two prior
`art references, Gordon and Banker.
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`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
`
`
`Now, there was some confusion in the institution decision, because
`Patent Owner said, no, no, no, they're just relying on Julia for that assessing
`step. They're creating a financial consequence as part of this, and they didn't
`cite you to the two paragraphs I have here on slide 32 where Dr. Schmandt
`talks about Gordon and Banker. They cited you to and the institution
`decision cites a different paragraph where he only talks about Julia. It's easy
`to see how there was confusion, but the fact is that both in our petition and in
`our initial expert declaration, we showed that Gordon and Banker disclosed
`both steps.
`If you look in our petition, and you go up to the section that I just
`noted there at the top of slide 32, Section VII.B.1, there's a discussion of
`Gordon and citations to Gordon and an explanation of Gordon. And it sends
`by saying, "Thus, Gordon discloses the assessing and billing steps." So
`we're not relying just on Julia, the combination exposes both steps.
`JUDGE KINDER: Let me ask a procedural question, and this is
`more looking at the claims and how you've set up your grounds here. You
`have Claim 5 is obvious in light of Julia alone, or with Gordon or Banker,
`but what if we determine that Claim 1 is not obvious in light of Julia alone,
`would we need to add either this Nazarathy or Quigley for Claim 1? You
`don't have that combination for Claim 5.
`MR. DAY: Oh, I think we do. In the petition, it's Julia, it actually
`in the institution decision, there's a long list of the different grounds, because
`you need Julia and Nazarathy plus Gordon, or Julia and Nazarathy plus
`Banker, or Julia and Quigley plus Gordon, or Julia and Nazarathy plus
`Banker.
`
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`

`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
`
`
`JUDGE KINDER: So you set that up in the petition?
`MR. DAY: That's in the petition. So either way. And again, I just
`want to circle back, because I think there was some confusion in the
`institution decision about what we were intending and I don't want that to
`sneak through. I want to be very clear and I'm hoping this slide 32 makes
`very clear that we've always been contending that Banker and/or Gordon
`disclosed both steps.
`I'm not going to dwell too much on the substance because the
`substance of that is really not disputed. It's this underlying premise where
`there's some dispute, and I don't think it's a reasonable dispute.
`Julia talks about implementing its system on lots of different types
`of television systems. Basically, you can add voice recognition to lots of
`different things, including the Diva Systems, video-on-demand system.
`That's on slide 32. I'm sorry, 33 that I'm talking about now. And our expert
`said, a person of ordinary skill would understand from that that you could
`implement Julia to create a financial -- you know, to have spoken requests
`that lead to financial consequences by implementing Julia on a Diva Systems
`video-on-demand system.
`So Julia is suggesting Diva. Gordon is a Diva patent. So Julia is
`suggesting -- is suggesting Gordon. And what Gordon talks about is doing
`what it calls a subscription on-demand service. So you could have a
`subscription to a couple of different channels or a couple of types of movies
`and it might have limitations on the days or the length of time, something
`like that, or it might just be you can watch a certain channel any time you
`want without paying more, but when it -- Gordon says, what it explicitly
`
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`

`
`
`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`discloses is, any time the user requests a title, the system is going to -- so
`after -- I'm sorry, I'm on slide 37.
`After receiving a title selection, so when a user picks something to
`watch, the video session manager determines the final price. So it's going to
`figure out what this thing is going to cost the user.
`If you look at slide 38, Gordon talks about Figure 8, which is
`basically you pick something you don't already have. Gordon says, all right,
`we're going to pop up a screen and say, if you want to watch KidsTV, you're
`going to have to pay $5.95 a month. Yes or no? That's more than teaching
`explicitly disclosing creating a financial consequence.
`And when you press yes, Gordon talks about sending you a bill for
`your subscriptions. So you're going to get billed for $5.95 every month.
`That's disclosed in Gordon. Gordon discloses both the assessing and billing
`steps.
`
`Baker also satisfies or discloses both steps. Baker talks about this
`is a user friendly front end for a subscription cable TV system. It says you
`can order things like pay-per-view events and if you want to watch some
`boxing that you have to pay a lot, you can do that. It has a buy button to
`create -- starts a buy sequence, talks about what that sequence is.
`You use a key to purchase an event. Purchasing an event is
`creating a financial consequence. And here on slide 41, we can point to
`Figure 6E, I believe, from Banker that shows you, if you want to buy this
`pay-per-view event, push buy. And Banker says, if you buy it, you're going
`to get billed. You're going to get billed for any pay-per-view and other
`impulse buys you make.
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`

`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`
`
`
`Well, Banker discloses both steps of Claim 5. And I want to make
`a point -- so that's the combinations. We've got them on the combinations.
`It's clear that these two -- that the combinations we've set out satisfy the
`steps of Claim 5. And these same steps are found in other dependent claims,
`the same arguments apply. There's no distinction between the other claims
`that have that assessing step in them.
`But one last point I want to make, we did also say Julia alone
`discloses or suggests and teaches a person of ordinary skill in the art that just
`based on Julia, you could issue a voice command and be told you're going to
`have to pay for that, pay for it and be billed, because Julia talks in a lot of
`places about video-on-demand, on-demand movies, that type of delivery.
`And what Dr. Schmandt said is, given the time frame, a person of
`ordinary skill in the art would know that includes paying for it. You asked
`for it. In his reply declaration, he particularly says, there's no -- at that time,
`I think he would say today, but certainly at that time, there was no specific
`distinction between what pay-per-view means and video-on-demand. And as
`an example, he said, look, if you were in a hotel room at that time and you
`wanted to pull up a movie on your TV, a person of ordinary skill in the art
`might call that video-on-demand. Certainly you have to pay for it.
`So there's no -- the notion that video-on-demand doesn't require
`financial consequence is not -- is contrary to what Dr. Schmandt has said.
`It's also not supported by the evidence. I understand the point of --
`JUDGE YAP: Counsel, sorry to interrupt. Before we get any
`further, earlier you said that in your petition, it is clear that for the assessing
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`

`
`
`IPR2018-00342 (Patent RE44,326)
`IPR2018-00343 (Patent RE44,326)
`IPR2018-00344 (Patent 7,047,196)
`IPR2018-00345 (Patent 7,047,196)
`
`step, to create a financial consequence, the petition is clear and has pointed
`to Julia alone, and Julia in combination with Banker or Gordon.
`So I'm looking at page -- I 62 of the petition. And perhaps I'm
`missing something here, but 62 --
`MR. DAY: I understand your point, Your Honor. I understand the
`confusion, and I understand how this mistake happened. In our petition,
`what we did is we said, here's Claim 5, the first step is assessing, here's how
`Julia does it. Here's billing, here's how Julia does it. And in addition, you
`could also take Julia and combine it with Banker or Gordon to do both steps.
`And so as -- perhaps it was a confusing way to organize our
`discussion, but we put the discussion of Banker all in one place and we put
`the discussion of Gordon all in one place, and it's not under the heading
`assessing. So I see where the confusion comes from. The fact of the matter
`is the language is there saying that both -- that Gordon and Banker disclose
`both steps, but given the headings, the headings are confusing.
`If you read the entire section on Claim 5, read the section of Claim
`5 from start to finish, then all of this is disclosed.

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