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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`BAUSCH HEALTH COMPANIES INC. AND
`BAUSCH HEALTH US LLC
`Petitioners
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`v.
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`FLOW PHARMA INC.,
`Patent Owner.
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`Case No. IPR2020-00165
`Patent 8,138,157
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`JOINT MOTION TO TERMINATE PROCEEDING PURSUANT TO 35
`U.S.C. 317(a) AND 37 C.F.R. §§ 42.72 AND 42.74
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`
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`Pursuant to 35 U.S.C. § 317(a), 37 C.F.R. §§ 42.72 and 42.74, and the Board’s
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`authorization on September 1, 2020, Patent Owner Flow Pharma Inc. and Petitioners
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`Bausch Health Companies Inc. and Bausch Health U.S., LLC (collectively, “the
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`Parties”) jointly request termination of IPR2020-00165 regarding U.S. Patent No.
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`8,138,157 (“the ’157 patent”).
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`The Parties have settled their disputes involving the ’157 patent. They have
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`agreed to settle the claims related to the ’157 patent in the related district court
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`litigation (Flow Pharma, Inc. v. Bausch Health Companies Inc. et al., Case No. 4:18-
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`cv-05769-JST (N.D.Cal.)). The Parties have filed a stipulation to dismiss the
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`district court litigation with prejudice. The Parties are not aware of additional
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`proceedings regarding the ’157 patent.
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` The Parties are concurrently filing a true and correct copy of their written
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`Settlement Agreement in connection with this matter, as required by statute, as
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`Confidential Exhibit 1042. The Parties jointly certify that, aside from the
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`Settlement Agreement, there are no other agreements or understandings, oral or
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`written, between the Parties, including any collateral agreements or understandings,
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`made in connection with, or in contemplation of, the termination of the present
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`proceeding. A joint request to treat the Settlement Agreement as business
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`2
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`confidential information kept separate from the file of the involved patent pursuant
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`to 35 U.S.C. § 317(b) and 37 C.F.R. §42.74(c) is being filed concurrently.
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`I.
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`Legal Standard
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`An AIA trial proceeding “shall be terminated with respect to any petitioner
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`upon the joint request of the petitioner and the patent owner, unless the Office has
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`decided the merits of the proceeding before the request for termination is filed.” 35
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`U.S.C. § 317(a); § 327(a). A joint motion to terminate generally “must (1) include
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`a brief explanation as to why termination is appropriate; (2) identify all parties in
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`any related litigation involving the patents at issue; (3) identify any related
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`proceedings currently before the Office, and (4) discuss specifically the current
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`status of each such related litigation or proceeding with respect to each party to the
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`litigation or proceeding.” Heartland Tanning, Inc. v. Sunless, Inc., IPR2014-
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`00018, Paper No. 26, at *2 (P.T.A.B. July 28, 2014).
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`II.
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`Dismissal of District Court Matter and Issuance of Settlement
`Agreement Warrants Termination
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`Termination of this IPR is appropriate as the Board has not yet decided the
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`merits of the proceeding, the related litigation between the Parties has been
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`dismissed with prejudice, and the Parties have agreed that it is appropriate to
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`terminate this proceeding. “Generally, the Board expects that a proceeding will
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`terminate after the filing of a settlement agreement.” DTN LLC v. Farms
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`3
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`
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`Technology, LLC, IPR2018-01412, Paper No. 21 (June 14, 2019) (precedential).
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`Terminating this proceeding promotes the Congressional goal of establishing a more
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`efficient and streamlined patent system that, inter alia, limits unnecessary and
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`counterproductive litigation costs. See Patent Office Trial Practice Guide, 77 Fed.
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`Reg. 48756, 48768 (Aug. 14, 2012). Given the dismissal with prejudice of the
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`subject patent from the litigation between the Parties, the absence of any other
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`pending litigation involving this patent, or any public interest or other factors
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`militating against termination, termination of this proceeding is justified.
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`III. Related Proceedings
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`As stated above, the related district court action between Patent Owner and
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`Petitioners has been settled.
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`IV. Conclusion
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`For the foregoing reasons, Patent Owner and Petitioners jointly request that
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`the Board terminate IPR2020-00165.
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`4
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`Dated: September 1, 2020
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`Respectfully submitted,
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`/s/ Scott K. Reed
`Scott K. Reed (Reg. No. 32,433)
`VENABLE LLP
`1290 Avenue of the Americas, 20th Floor
`New York, NY 10104
`Tel: (212) 218-2227
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`Counsel for Petitioners,
`Bausch Health Companies Inc. and
`Bausch Health U.S., LLC
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`___________________
`Karl Bozicevic (Reg. No. 28,807)
`BOZICEVIC, FIELD AND FRANCIS LLP
`201 Redwood Shores Parkway, Suite 200
`Redwood City, CA 94065
`Telephone: (650) 327-3400
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`Counsel for Patent Owner,
`Flow Pharma Inc.
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`5
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