`571-272-7822
`
`
`
`
`
`
`Paper 6
`Date: December 5, 2019
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`_____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`VOLKSWAGEN GROUP OF AMERICA, INC.,
`Petitioner,
`
`v.
`
`CARUCEL INVESTMENTS, L.P.,
`Patent Owner.
`____________
`
`IPR2019-01104
`Patent 8,463,177 B2
`____________
`
`
`Before THOMAS L. GIANNETTI, DANIEL J. GALLIGAN, and
`PAUL J. KORNICZKY, Administrative Patent Judges.
`
`KORNICZKY, Administrative Patent Judge.
`
`
`DECISION
`Granting Institution of Inter Partes Review
`35 U.S.C. § 314
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`I.
`
`INTRODUCTION
`
`Volkswagen Group of America, Inc. (“Petitioner”) filed a Petition for
`
`an inter partes review of claims 16, 21–28, 30, 31, 47–49, and 51–53 of U.S.
`
`Patent No. 8,463,177 B2 (Ex. 1001, “the ’177 patent”). Paper 2 (“Pet.”).
`
`Carucel Investments, L.P. (“Patent Owner”) did not file a Preliminary
`
`Response.
`
`Under 37 C.F.R. § 42.4(a), we have authority to determine whether to
`
`institute an inter partes review. Upon considering the Petition and the
`
`evidence of record, we determine that Petitioner has demonstrated a
`
`reasonable likelihood of prevailing in showing the unpatentability of at least
`
`one of the challenged claims. For the reasons described below, we institute
`
`an inter partes review of claims 16, 21–28, 30, 31, 47–49, and 51–53 of the
`
`’177 patent with respect to all grounds in the Petition.
`
`
`
`II. BACKGROUND
`
`A. Related Proceedings
`
`According to Petitioner and Patent Owner, the ’177 patent is involved
`
`in district court litigations:
`
`(1) Carucel Investments LP v. Fiat Chrysler Automobiles US LLC et
`
`al., Case No. 3-18-cv-03331 (N.D. Tex., filed Dec. 18, 2018),
`
`(2) Carucel Investments LP v. General Motors Company, Case No. 3-
`
`18-cv-03332 (N.D. Tex., filed Dec. 18, 2018),
`
`(3) Carucel Investments LP v. Volkswagen Group of America Inc.,
`
`Case No. 3-18-cv-03333 (N.D. Tex., filed Dec. 18, 2018), and
`
`(4) Carucel Investments LP v. Mercedes-Benz USA LLC et al., Case
`
`No. 3-18-cv-03334 (N.D. Tex., filed Dec. 18, 2018). Pet. 3; Paper 3, 1.
`
`
`
`2
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`Petitioner and Patent Owner also state that the ’177 patent is related to
`
`certain patents involved in inter partes reviews:
`
`(1) U.S. Patent No. 7,221,904: IPR2019-01298, -01101, -01573,
`
`‑01635;
`
`(2) U.S. Patent No. 7,848,701: IPR2019-01102, -01442;
`
`(3) U.S. Patent No. 7,979,023: IPR2019-01079, -01103, -01404; and
`
`(4) U.S. Patent No. 8,718,543: IPR2019-01105, -01106, -01441.
`
`See Pet. 3; Paper 3, 1.
`
`B. Real Parties-in-Interest
`
`Petitioner identifies itself as the real party in interest. Pet. 2. Patent
`
`Owner identifies itself as the real party in interest. Paper 3, 1.
`
`C. The ʼ177 Patent (Ex. 1001)
`
`The title of the ʼ177 patent is “Mobile Communication System with
`
`Moving Base Station.” Ex. 1001, code (54). The ’177 patent relates to
`
`cellular telephone systems and states that a “problem with existing mobile
`
`telephone systems is the considerable time required in handoffs,” which is
`
`the process by which a mobile unit is transferred from one cell site to
`
`another as it moves through a network. Id. at 1:39–47, 1:58–59. According
`
`to the ’177 patent, in urban areas, the number of cells is increased and cell
`
`size is decreased to accommodate more users. Id. at 1:59–2:2. The ’177
`
`patent states that a drawback of reducing cell size is that mobile units cross
`
`cell boundaries more often, requiring more handoffs. Id. at 2:2–6.
`
`To address this purported problem, the ’177 patent proposes a mobile
`
`communication system that employs moving base stations, which move in
`
`the direction of traffic along a roadway. Id. at 2:65–3:6. The moving base
`
`
`
`3
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`stations are interposed between mobile units and fixed base stations. Id.
`
`The ’177 patent states that, “because of movement of the base station in the
`
`same direction as the traveling mobile unit, the number of handoffs is greatly
`
`reduced.” Id. at 5:17–19.
`
`D. Illustrative Claim
`
`As mentioned above, the challenged claims are claims 16, 21–28, 30,
`
`31, 47–49, and 51–53. Claims 16 and 47 are the independent claims among
`
`the challenged claims, and are reproduced below:
`
`16. A method comprising:
`
`receiving fixed port signals from a fixed port through the
`plurality of spatially separated antennas moving relative to
`Earth; and
`
`transmitting, to a mobile device, radio frequency signals
`corresponding to the received fixed port signals.
`
`Ex. 1001, 12:18–23.
`
`47. A method comprising:
`
`receiving a first radio frequency signal through a
`plurality of spatially separated antennas moving relative to
`Earth and
`
`transmitting, to a mobile device moving relative to Earth,
`a second radio frequency signal corresponding to the received
`first radio signal.
`
`Ex. 1001, 14:9–15.
`
`
`
`E. References
`
`Petitioner relies on the following references:
`
`1. U.S. Patent No. 5,276,686, issued January 4, 1994 (Ex. 1005,
`
`“Ito”).
`
`
`
`4
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`2. U.S. Patent No. 5,504,786, issued April 2, 1996 (Ex. 1006,
`
`“Gardner”).
`
`3. U.S. Patent No. 5,109,390, issued April 28, 1992 (Ex. 1007,
`
`“Gilhousen ’390”).
`
`4. U.S. Patent No. 4,001,692, issued January 4, 1997 (Ex. 1008,
`
`“Fenwick”).
`
`5. U.S. Patent No. 5,559,865, issued September 24, 1996 (Ex. 1009,
`
`“Gilhousen ’865”).
`
`Petitioner also relies on testimony from Scott A. Denning (Ex. 1003,
`
`“Denning Decl.”).
`
`
`
`
`
`F. Grounds Asserted
`
`Petitioner challenges the patentability of the ʼ177 patent claims on the
`
`following grounds:
`
`Claim(s) Challenged
`
`16, 21–26, 30,
`31, 47–49, 51–53
`27
`28
`16, 21–27, 30,
`31, 47–49, 51–53
`28
`
`Pet. 7.
`
`35 U.S.C. §
`103
`
`References
`Ito, Gardner
`
`103
`103
`103
`
`103
`
`Ito, Gardner, Gilhousen ’390
`Ito, Gardner, Fenwick
`Gilhousen ’865, Gilhousen ’390
`
`Gilhousen ’865, Gilhousen
`’390, Fenwick
`
`
`
`
`
`5
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`G. Overview of the Asserted Prior Art
`
`1. Overview of Ito (Ex. 1005)
`
`Ito is a patent titled “Mobile Radio Communication System Having
`
`Mobile Base and Portable Devices as a Mobile Station,” and issued on
`
`January 4, 1994. Ex. 1005, codes (54), (45). Petitioner contends Ito is prior
`
`art under 35 U.S.C. § 102(b). Pet. 5.
`
`According to Ito, cellular mobile radio telephone systems have mobile
`
`stations that are connected by a radio channel to a base station for the radio
`
`communication zone where it is currently located. Ex. 1005, 1:22–24. The
`
`mobile stations are further connected to a wire telephone network by way of
`
`the base station and a control station. Id. at 1:24–26. The automobile
`
`telephone main unit and the handset assembly are connected by a signal
`
`cord, and the cradle and the handset are connected by a curled cord. Id.
`
`at 1:51–54. Ito explains that “[w]ith such an arrangement, the curled cord
`
`can constitute[] an annoying obstacle when the driver drives and speaks into
`
`the telephone transmitter simultaneously. Moreover, the handset cannot be
`
`moved away beyond a limit posed by the curled wire . . . .” Id. at 1:55–59.
`
`
`
`To address these issues, Ito describes a mobile radio communication
`
`system that wirelessly connects a mobile station, or a mobile base device,
`
`and a portable device by a radio channel, in order to eliminate the necessity
`
`of wiring the mobile base device and portable telephone device together and
`
`increasing the maneuverability of the telephone handset. Id. at 2:5–12. This
`
`is illustrated by Figure 6 of Ito, reproduced below.
`
`
`
`6
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`
`
`Figure 6 of Ito depicts a mobile radio communication system.
`
`In Figure 6 of Ito, mobile base device MSS is wirelessly connected
`
`simultaneously with two portable devices PSS1 and PSS2. Ex. 1005, 12:52–
`
`56. Base station BSS and mobile base device MSS communicate with each
`
`other by way of radio frequencies fT 1 and fR1.1 Id. at 12:57–63. Mobile base
`
`device MSS and portable devices PSS1 and PSS2 communicate with each
`
`other by way of radio frequencies fT A and fRA. Id.
`
`
`
`As described by Ito, Figure 3 (not shown) illustrates mobile base
`
`device MSS, which has two transmitter-receiver units. Ex. 1005, 7:9–12.
`
`The first transmitter-receiver unit is used for radio communication with base
`
`station BSS by way of a first radio channel. Id. at 7:12–17. The second
`
`transmitter-receiver unit is used for radio communication with its portable
`
`devices PSS by way of a second radio channel. Id.
`
`
`
`
`1
`As Petitioner points out (Pet. 16 n.5), Figure 6 of Ito mislabels fT 1 as
`fr1. See Ex. 1005, 12:57–63.
`
`
`
`7
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`2. Overview of Gardner (Ex. 1006)
`
`Gardner is a patent titled “Open Loop Phase Estimation Methods and
`
`Apparatus for Coherent Combining of Signals Using Spatially Diverse
`
`Antennas in Mobile Channels.” Ex. 1006, code (54). Petitioner asserts that,
`
`because Gardner was filed on October 5, 1993, which is before the earliest
`
`effective filing date of the ’177 patent, it is prior art under 35 U.S.C.
`
`§ 102(e). Pet. 5.
`
`Gardner describes a receiver for use in cellular communications.
`
`Ex. 1006, 2:17–19. The receiver is configured to receive spatially diverse
`
`signals and to properly align and combine the received signals. Id. at 1:65–
`
`2:4. The receiver includes two spatially diverse antennas. Id. at 2:23–24.
`
`After demodulation and conversion, the received signals are processed by
`
`the receiver for alignment and combining. Id. at 2:64–3:10. Specifically,
`
`after the signals are converted to digital form, phase difference detection is
`
`performed in order to detect “a good estimate of the actual phase difference
`
`between the two signals.” Id. at 2:64–67. Then, the phase difference is used
`
`to phase align the two digitized signal vectors by shifting the phase of the
`
`vector. Id. at 3:1–7. Once aligned, the signals can be combined. Id. at 3:7–
`
`10.
`
`3. Overview of Gilhousen ’865 (Ex. 1009)
`
`Gilhousen ’865 is a patent titled “Airborne Radiotelephone
`
`Communication System.” Ex. 1009, code (54). Petitioner asserts that,
`
`because Gilhousen ’865 was filed on July 8, 1994, which is before the
`
`earliest effective filing date of the ’177 patent, it is prior art under 35 U.S.C.
`
`§ 102(e). Pet. 6.
`
`
`
`8
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`Gilhousen ’865 is directed to an airborne communication system that
`
`allows radiotelephones on a plane to communicate with a ground-based
`
`cellular system. Ex. 1009, code (57). Figure 1 of Gilhousen ’865 is
`
`reproduced below.
`
`
`
`Figure 1 of Gilhousen ’865, reproduced above, depicts an airborne
`
`communication system having ground-based subsystem 105 and airborne-
`
`based subsystem 125. Ex. 1009, 2:9–12. As shown in Figure 1, ground-
`
`based subsystem 105 has base station 120 coupled to antenna 150 and to
`
`mobile switching center 115, which in turn is coupled to public switched
`
`telephone network (PSTN) 110. Id. at 2:21–33.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`9
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`Figure 2 of Gilhousen ’865 is reproduced below.
`
`
`
`Figure 2 of Gilhousen ’865, reproduced above, depicts an airborne-based
`
`subsystem having radiotelephones 205, signal repeater 210, and antenna 215
`
`mounted on the outside of the aircraft. Ex. 1009, 2:45–52. Repeater 210
`
`receives signals from radiotelephones 205 within the aircraft and relays them
`
`to antenna 215, which relays the signals to the base station on the ground.
`
`Id. at 2:53–57. Gilhousen ’865 discloses that signal repeater 210 may be
`
`replaced by an airborne base station that “has the same functionality of its
`
`ground-based counterpart but on a much smaller scale since it does not have
`
`to handle the thousands of radiotelephones of the ground-based station.” Id.
`
`at 3:3–10.
`
`
`
`4. Overview of Gilhousen ’390 (Ex. 1007)
`
`Gilhousen ’390 is a patent titled “Diversity Receiver in a CDMA
`
`Cellular Telephone System.” Ex. 1007, code (54). Petitioner asserts that,
`
`because Gilhousen ’390 issued on April 28, 1992, more than three years
`
`
`
`10
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`before the earliest effective filing date of the ’177 patent, it is prior art under
`
`35 U.S.C. § 102(b). Pet. 6.
`
`Gilhousen ’390 discloses techniques for receiving the strongest
`
`signals from multiple sites in a cellular system. Ex. 1007, 4:27–34. One
`
`technique disclosed in Gilhousen ’390 involves using two receivers to
`
`demodulate signals on the two strongest paths and using information from
`
`both signals in a “diversity combining operation,” which results in improved
`
`resistance to multipath fading. Id. at 8:11–21. Gilhousen ’390 also discloses
`
`a mobile unit having multiple digital data receivers to enable diversity
`
`reception. Id. at 12:35–40, Fig. 2.
`
`
`
`5. Overview of Fenwick (Ex. 1008)
`
`Fenwick is a patent titled “Time Diversity Data Transmission
`
`Apparatus.” Ex. 1008, code (54). Petitioner asserts that, because Fenwick
`
`issued on January 4, 1997, more than 18 years before the earliest effective
`
`filing date of the ’177 patent, it is prior art under 35 U.S.C. § 102(b). Pet. 6.
`
`Fenwick discloses a time diversity data transmission apparatus.
`
`Fenwick explains that “[s]ignal fading, impulsive noise and interference are
`
`deleterious effects frequently encountered in many transmission circuits”
`
`and that where “these effects are present, the quality of transmission is
`
`deteriorated.” Ex. 1008, 1:14–18. According to Fenwick, its data
`
`transmission apparatus reduces these deleterious effects through “time
`
`diversity.” Id. at 1:32–40. Fenwick explains that time diversity means
`
`“transmission of data two or more times with a time delay between each
`
`transmission.” Id. at 1:37–40. Although previous systems employed
`
`synchronous time diversity, Fenwick proposes an asynchronous system as an
`
`
`
`11
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`improvement to the prior art that “permits many different transmission data
`
`rates to be utilized without requiring changes in operating frequency.” Id. at
`
`2:5–8. A receiver in Fenwick’s system receives the multiple time-delayed
`
`data streams, which, “after removal of time diversity, are algebraically added
`
`to form a sum data stream.” Id. at 2:25–29.
`
`
`
`III. ANALYSIS
`
`A. Level of Ordinary Skill in the Art
`
`Petitioner asserts that a person of ordinary skill in the art would have
`
`had “a B.S. degree in Computer Science, Electrical Engineering, or an
`
`equivalent field, as well as at least 2–3 years of academic or industry
`
`experience in mobile wireless communications, or comparable industry
`
`experience.” Pet. 13 (citing Denning Decl. ¶¶ 29–30).
`
`We regard Petitioner’s definition as consistent with the prior art
`
`before us. See Okajima v. Bourdeau, 261 F.3d 1350, 1355 (Fed. Cir. 2001)
`
`(prior art itself may reflect an appropriate level of skill). Thus, for the
`
`purpose of our decision, we adopt Petitioner’s proposal.
`
`B. Claim Construction
`
`In an inter partes review based on a petition filed on or after
`
`November 13, 2018,2 the claims are construed
`
`using the same claim construction standard that would be used
`to construe the claim in a civil action under 35 U.S.C.
`
`
`2
`See Changes to the Claim Construction Standard for Interpreting
`Claims in Trial Proceedings Before the Patent Trial and Appeal Board, 83
`Fed. Reg. 51,340 (Oct. 11, 2018) (amending 37 C.F.R. § 42.100(b) effective
`November 13, 2018).
`
`
`
`12
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`[§] 282(b), including construing the claim in accordance with
`the ordinary and customary meaning of such claim as
`understood by one of ordinary skill in the art and the
`prosecution history pertaining to the patent.
`
`37 C.F.R. § 42.100(b) (Nov. 2018); see Phillips v. AWH Corp., 415 F.3d
`
`1303, 1312–13 (Fed. Cir. 2005). Any special definitions for claim terms
`
`must be set forth in the specification with reasonable clarity, deliberateness,
`
`and precision. See In re Paulsen, 30 F.3d 1475, 1480 (Fed. Cir. 1994).
`
`Petitioner asserts that none of the claim terms needs to be construed to
`
`resolve issues in dispute in the proceeding. Pet. 14. We determine that no
`
`claim term requires express construction for purposes of this Decision. See
`
`Vivid Techs., Inc. v. Am. Sci. & Eng’g, Inc., 200 F.3d 795, 803 (Fed. Cir.
`
`1999) (“[O]nly those terms need be construed that are in controversy, and
`
`only to the extent necessary to resolve the controversy.”); Nidec Motor
`
`Corp. v. Zhongshan Broad Ocean Motor Co., 868 F.3d 1013, 1017 (Fed.
`
`Cir. 2017) (applying Vivid Techs. in the context of an inter partes review).
`
`
`
`C. Obviousness over Ito and Gardner
`
`Petitioner asserts that claims 16, 21–26, 30, 31, 47–49, and 51–53 are
`
`unpatentable under 35 U.S.C. § 103 as obvious over the combined teachings
`
`of Ito and Gardner. Pet. 23–47.
`
`1. Analysis of Asserted Obviousness of Claims 16, 21–26, 30,
`31, 47–49, and 51–53
`
`A claim is unpatentable under 35 U.S.C. § 103(a) if the differences
`
`between the subject matter sought to be patented and the prior art are such
`
`that the subject matter as a whole would have been obvious at the time the
`
`invention was made to a person having ordinary skill in the art to which said
`
`
`
`13
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`subject matter pertains. KSR Int’l Co. v. Teleflex Inc., 550 U.S. 398, 406
`
`(2007). The question of obviousness is resolved based on underlying factual
`
`determinations including: (1) the scope and content of the prior art; (2) any
`
`differences between the claimed subject matter and the prior art; (3) the level
`
`of ordinary skill in the art; and (4) when in the record, objective evidence of
`
`nonobviousness. Graham, 383 U.S. at 17–18. In that regard, an
`
`obviousness analysis “need not seek out precise teachings directed to the
`
`specific subject matter of the challenged claim, for a court can take account
`
`of the inferences and creative steps that a person of ordinary skill in the art
`
`would employ.” KSR, 550 U.S. at 418.
`
`
`
`a) Petitioner’s Arguments
`
`In support of Petitioner’s contention that claims 16, 21–26, 30, 31,
`
`47–49, and 51–53 would have been obvious over the combined teachings of
`
`Ito and Gardner, Petitioner provides an element-by-element analysis
`
`showing where each element of the challenged claims is in Ito or Gardner.
`
`Pet. 23–47. Petitioner supports its analysis with testimony from Mr.
`
`Denning. See Denning Decl. ¶¶ 102–164. We have reviewed the
`
`information provided by Petitioner, including the relevant portions of the
`
`supporting Denning Declaration (Ex. 1003). Based on the current record,
`
`for reasons set forth below, we are persuaded that Petitioner has
`
`demonstrated a reasonable likelihood of prevailing on this obviousness
`
`challenge.
`
`(i) Independent Claim 16
`
`As mentioned above, the preamble of claim 16 recites a “method
`
`comprising.” Petitioner asserts that, to the extent the preamble is limiting,
`
`
`
`14
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`Ito’s mobile base device MSS, as modified by the teachings of Gardner,
`
`performs the method steps recited in claim 16. Pet. 26 (citing Ex. 1005,
`
`12:52).
`
`Claim 16 recites that the method comprises “receiving fixed port
`
`signals from a fixed port through the plurality of spatially separated antennas
`
`moving relative to Earth.” Petitioner asserts that this limitation is taught, in
`
`part, by Ito’s disclosure that its “mobile base device MSS facilitates
`
`communication between a stationary base station BSS2 (fixed port) and a
`
`portable device PSS located within the vehicle” and that the MSS
`
`“‘receive[s] a signal from the base station BSS2’ (receiving [a] fixed port
`
`signal[] from a fixed port) via the first transmitter-receiver 50 and
`
`‘forward[s] it to the portable device PSS2’ via the second transmitter-
`
`receiver 80.” Pet. 27–28 (citing Ex. 1005, 5:62–65, 13:15–18). Petitioner
`
`furthers asserts that, because the MSS is located in an automobile, “antenna
`
`58 is ‘moving relative to earth.’” Id. at 29. Petitioner also asserts that
`
`Gardner discloses “receiving fixed port signals . . . through the plurality of
`
`spatially separated antennas,” as recited in claim 16, because “Gardner
`
`explains that, during operation, multiple ‘RF signals [are] received on the
`
`two antennas’ in order to improve receiver performance and combat fading
`
`issues.” Id. (quoting Ex. 1006, 2:24–30, 1:15–24).
`
`Claim 16 recites that the method comprises “transmitting, to a mobile
`
`device, radio frequency signals corresponding to the received fixed port
`
`signals.” Petitioner asserts that this limitation is taught by Ito’s disclosure
`
`that “mobile base device MSS facilitates communication between a base
`
`station BSS2 (fixed port) and a portable device PSS (mobile device) located
`
`within a vehicle.” Pet. 30. Petitioner explains that Ito’s mobile base device
`
`
`
`15
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`MSS “receive[s] a signal from the base station BSS2 and forward[s] it to
`
`the portable device PSS2” and that a person of ordinary skill in that art
`
`would have understood that “the signal transmitted to the portable device
`
`PSS corresponds to those received from the base station BSS2” and “this
`
`forwarding process is performed for multiple signals.” Id. at 31 (citing
`
`Ex.1005, 13:15–18, 6:41–46, 8:62–64; Ex. 1003 ¶ 116).
`
`Even if Petitioner’s two prior art references (Ito and Gardner) disclose
`
`all of the limitations in claim 16 when combined, there must be evidence to
`
`explain why a person of ordinary skill in the art would have combined the
`
`references to arrive at the claimed invention. Kinetic Concepts, Inc. v. Smith
`
`& Nephew, Inc., 688 F.3d 1342, 1366–67 (Fed. Cir. 2012) (citing
`
`Innogenetics, N.V. v. Abbott Labs., 512 F.3d 1363, 1374 (Fed. Cir. 2008)
`
`(holding that post-KSR “some kind of motivation must be shown from some
`
`source, so that the [trier of fact] can understand why a person of ordinary
`
`skill would have thought of either combining two or more references or
`
`modifying one to achieve the patented [invention]”)). A precise teaching
`
`directed to the specific subject matter of a challenged claim is not necessary
`
`to establish obviousness. KSR, 550 U.S. at 418. Rather, “any need or
`
`problem known in the field of endeavor at the time of invention and
`
`addressed by the patent can provide a reason for combining the elements in
`
`the manner claimed.” Id. at 420. Accordingly, Petitioner must show that “a
`
`skilled artisan would have been motivated to combine the teachings of the
`
`prior art references to achieve the claimed invention, and that the skilled
`
`artisan would have had a reasonable expectation of success in doing so.” In
`
`re Magnum Oil Tools Int’l, Ltd., 829 F.3d 1364, 1381 (Fed. Cir. 2016)
`
`(internal quotations and citations omitted).
`
`
`
`16
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`Here, Petitioner provides a rationale for combining Ito and Gardner.
`
`See, e.g., Pet. 23–25. Petitioner asserts that Ito’s first receiver-transmitter 50
`
`(base station side) and second receiver-transmitter 80 (portable device side)
`
`each include only a single antenna, and, thus, are not configured to receive
`
`spatially diverse signals. Id. at 23. According to Petitioner, Ito also
`
`discloses that signals transmitted to a moving device often have higher error
`
`rates due to “high speed fading phenomena” but does not specifically
`
`describe how such errors can be reduced. Id. (citing Ex. 1005, 16:49–61;
`
`Denning Decl. ¶ 103). Petitioner explains that a person of ordinary skill in
`
`the art “would have looked to the prior art, such as Gardner, for determining
`
`how to combat the deleterious effects of fading on signals transmitted to a
`
`moving device.” Id. at 24 (citing Denning Decl. ¶ 103). Petitioner also
`
`explains that “Gardner emphasizes the importance of employing spatially
`
`diverse antennas in the receiver to reduce the effects of fading on received
`
`signals” and contends that, based on the teachings of Gardner, a person of
`
`ordinary skill in the art “would have been motivated to modify Ito so as to
`
`incorporate spatially diverse antennas.” Id. (citing Ex. 1006, 1:15–24;
`
`Denning Decl. ¶ 105).
`
`Petitioner further asserts that a person of ordinary skill in the art
`
`“would have recognized Gardner’s spatially diverse receiver to be modular”
`
`and that “[m]odifying Ito with Gardner would have required minimal
`
`modifications.” Pet. 24 (citing Denning Decl. ¶ 105). According to
`
`Petitioner, a person of ordinary skill in the art “could have combined the
`
`system of Ito with the teachings of Gardner by known methods, and the
`
`results of the combination would have been predictable (e.g., by replacing
`
`Ito’s antenna with Gardner’s spatially separated antennas),” and “the
`
`
`
`17
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`proposed combination of Ito and Gardner would involve nothing more than
`
`incorporating a well-known concept (i.e., Gardner’s signal diversity) into a
`
`well-known system (i.e., Ito’s radio communication system).” Id. at 25
`
`(citing Denning Decl. ¶ 107).
`
`
`
`
`
`b) Patent Owner’s Arguments
`
`Patent Owner did not file a Preliminary Response.
`
`c) Threshold Determination for the Challenged Claims
`
`Based on the present record, we find that Petitioner has shown a
`
`reasonable likelihood of prevailing with respect to its challenge of claim 16
`
`as unpatentable as being obvious over Ito and Gardner, and thus, Petitioner’s
`
`evidence is sufficient for the purpose of instituting inter partes review.
`
`Petitioner also provides a detailed analysis explaining where the
`
`combination of Ito and Gardner teaches or suggests the limitations in claims
`
`21–26, 30, and 31, which depend from independent claim 16, and claims
`
`47–49, and 51–53. Pet. 32–47. Based on our review of Petitioner’s
`
`arguments and evidence concerning claims 16, 21–26, 30, 31, 47–49, and
`
`51–53, we have determined that Petitioner has shown a reasonable
`
`likelihood of proving that the challenged claims are unpatentable. See Pet.
`
`23–47 (providing detailed explanation and supporting citations to the prior
`
`art and testimony of Mr. Denning).
`
`
`
`
`
`18
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`
`D. Remaining Challenges––Obviousness over Ito, Gardner, Fenwick,
`Gilhousen ’390, and Gilhousen ’865
`Petitioner asserts that: (1) claim 27 is unpatentable under 35 U.S.C.
`
`
`
`§ 103 as obvious over the combined teachings of Ito, Gardner, and
`
`Gilhousen ’390; (2) claim 28 is unpatentable under 35 U.S.C. § 103 as
`
`obvious over the combined teachings of Ito and Gardner, and Fenwick;
`
`(3) claims 16, 21–27, 30, 31, 47–49, and 51–53 are unpatentable under 35
`
`U.S.C. § 103 as obvious over the combined teachings of Gilhousen ’865 and
`
`Gilhousen ’390; and (4) claim 28 is unpatentable under 35 U.S.C. § 103 as
`
`obvious over the combined teachings of Gilhousen ’865, Gilhousen ’390,
`
`and Fenwick. Pet. 48–78. Having determined that Petitioner’s challenge of
`
`claims 16, 21–26. 30, 31, and 47–49 over Ito and Gardner meets the
`
`threshold for review, we institute a review as to all of challenged claims and
`
`grounds contained in the Petition. See SAS Inst. Inc. v. Iancu, 138 S. Ct.
`
`1348, 1359–60 (2018) (holding that a decision to institute under 35 U.S.C.
`
`§ 314 may not institute on fewer than all claims challenged in the petition);
`
`Trial Practice Guide Update 31 (July 2019) (“The Board will not institute on
`
`fewer than all claims or all challenges in a petition.”), available at
`
`https://www.uspto.gov/sites/default/files/documents/trial-practice-guide-
`
`update3.pdf.
`
`
`
`IV. CONCLUSION
`
`For the reasons expressed above, we determine that Petitioner has
`
`established the requisite reasonable likelihood of prevailing as to at least one
`
`challenged claim of the ’177 patent. Because Petitioner has satisfied the
`
`threshold for institution as to one claim, we institute inter partes review on
`
`
`
`19
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`all claims and all grounds raised in the Petition. See SAS, 138 S. Ct. at
`
`1359–60; Trial Practice Guide Update 31.
`
`Our factual findings and determinations at this stage of the proceeding
`
`are preliminary and based on the evidentiary record developed thus far. This
`
`is not a final decision as to the patentability of claims for which inter partes
`
`review is instituted. Our final decision will be based on the record as fully
`
`developed during trial.
`
`
`
`V. ORDER
`
`It is, therefore,
`
`ORDERED that, pursuant to 35 U.S.C. § 314(a), an inter partes
`
`review of claims 16, 21–28, 30, 31, 47–49, and 51–53 of the ʼ177 patent
`
`with respect to all grounds in the Petition is hereby instituted; and
`
`FURTHER ORDERED that pursuant to 35 U.S.C. § 314(c) and
`
`37 C.F.R. § 42.4, notice is hereby given of the institution of a trial
`
`commencing on the entry date of this Decision.
`
`
`
`20
`
`
`
`IPR2019-01104
`Patent 8,463,177 B2
`
`PETITIONER:
`
`Ryan Richardson
`rrichardson-ptab@sternekessler.com
`
`Michael Specht
`mspecht-ptab@sternekessler.com
`
`Lauren Schleh
`lschleh-ptab@sternekessler.com
`
`Daniel Yonan
`dyonan-ptab@sternekessler.com
`
`
`
`PATENT OWNER:
`
`Charles Gavrilovich
`chuck@gdllawfirm.com
`
`Sanford E. Warren, Jr.
`swarren@wriplaw.com
`
`R. Scott Rhoades
`srhoades@wriplaw.com
`
`
`
`
`
`
`
`
`21
`
`