throbber
Trials@uspto.gov
`571-272-7822
`
`
`
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`
`
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`Paper 29
`Date: February 11, 2021
`
`
`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`INTEL CORPORATION,
`Petitioner,
`
`v.
`
`VLSI TECHNOLOGY LLC,
`Patent Owner.
`____________
`
`IPR2020-00583
`Patent 7,606,983 B2
`____________
`
`
`
`Before THU A. DANG, BART A. GERSTENBLITH, and
`KIMBERLY McGRAW, Administrative Patent Judges.
`
`GERSTENBLITH, Administrative Patent Judge.
`
`
`DECISION
`Denying Petitioner’s Request on Rehearing of the
`Decision Denying Institution of Inter Partes Review
`37 C.F.R. § 42.71(d)
`
`
`
`
`
`
`
`

`

`IPR2020-00583
`Patent 7,606,983 B2
`
`I. INTRODUCTION
`Intel Corporation (“Petitioner”) filed a Request for Rehearing
`(Paper 24, “Rehearing Request” or “Req. Reh’g”) of the Decision Denying
`Institution of Inter Partes Review (Paper 22, “Decision” or “Inst. Dec.”).
`Petitioner also filed a request for the Precedential Opinion Panel (“POP”) to
`review the Decision (Paper 25 (Notification of Receipt of POP Request)),
`which the POP denied (Paper 26 (Order)).
`For the reasons provided below, Petitioner’s Rehearing Request is
`denied.
`
`II. ANALYSIS
`A party requesting rehearing bears the burden of showing that the
`decision should be modified. 37 C.F.R. § 42.71(d). “The request must
`specifically identify all matters the party believes the Board misapprehended
`or overlooked, and the place where each matter was previously addressed in
`a motion, an opposition, or a reply.” Id. When rehearing a decision on a
`petition, we review the decision for an abuse of discretion. 37 C.F.R.
`§ 42.71(c).
`Petitioner’s Rehearing Request raises two primary arguments: (1) that
`the precedential Board decisions in Apple Inc. v. Fintiv, Inc., IPR2020-
`00019, Paper 11 (PTAB Mar. 20, 2020) (precedential), and NHK Spring Co.
`v. Intri-Plex Techs., Inc., IPR2018-00752, Paper 8 (PTAB Sept. 12, 2018)
`(precedential), were wrongly decided and should be reviewed by the POP;
`and (2) that, even under the Fintiv/NHK Spring framework, the Board erred
`by (a) speculating that the related district court trial will likely occur months
`before any final written decision; (b) failing to place appropriate weight on
`Patent Owner’s litigation conduct; and (c) ignoring that the district court trial
`
`2
`
`

`

`IPR2020-00583
`Patent 7,606,983 B2
`will likely not address the validity of most challenged claims. See, e.g., Req.
`Reh’g 1–2.
`With respect to whether Fintiv and NHK Spring were decided
`correctly, that issue was raised in Petitioner’s POP request, which was
`denied. See Paper 26. With respect to our consideration of the facts under
`the Fintiv/NHK Spring framework, we address each of Petitioner’s
`arguments.
`First, Petitioner contends that we should not have relied upon the
`circumstances surrounding a potential trial date because “the facts do not
`support an estimation that the third trial will occur by any particular date in
`2021.” Req. Reh’g 12. In short, only the trial date for the first of three
`related district court cases was set by the district court and that trial does not
`involve the ’983 patent, which is at issue only in the third trial. See id. at
`12–14. Additionally, the 112-day spread between the first and third trials
`was based on a proposal by Patent Owner and was not agreed to by Intel or
`endorsed by the district court. Id. at 13. Further, Petitioner contends that
`after we issued our Decision, the district court rescheduled the first trial due
`to the closing of the Austin courthouse for civil jury trials because of
`COVID-19 and that there is no indication when the third trial involving the
`’983 patent actually will occur. Id. at 12–13.
`In our Decision, we found that, although there was no set trial date for
`the ’983 patent, the facts available at the time supported the determination
`that trial would likely occur months before any final written decision. Inst.
`Dec. 6–7. Even though we agreed with Petitioner that a firm trial date had
`not been set, the information available at the time of our Decision supported
`Patent Owner’s argument that trial would occur before a final written
`decision would have issued, if not months before. See id.
`
`3
`
`

`

`IPR2020-00583
`Patent 7,606,983 B2
`A conference call was held on January 28, 2021, between counsel for
`the parties and Judges Dang, Gerstenblith, and McGraw to discuss the
`current state of the related district court litigation. A transcript of the
`conference is of record as Exhibit 1026 (“Tr.”). During the conference,
`Patent Owner explained that, although a firm trial date had not been set by
`court order, the parties received an email from Mr. Pearson, one of Judge
`Albright’s law clerks, in which Mr. Pearson acknowledges the urgency of
`setting trial dates and indicates that the parties have priority to a trial date of
`June 7, 2021, for the ’983 patent. Ex. 10271 (Email from Evan Pearson, sent
`Nov. 17, 2020), 1 (Mr. Pearson states, “I will get them on the calendar and
`hold them as a priority – please keep us posted with adjustments.”);
`Tr. 11:17–12:9. Petitioner contends that the June 2021 date held for the
`third trial involving the ’485 patent is based on holding the trial in Austin,
`Texas, where the courthouse is closed currently, and that the first trial was
`moved to Waco, where the courthouse is open currently. Tr. 14:9–16. On
`February 4, 2021, the district court issued an order setting a trial date of
`June 7, 2021, for the ’983 patent. Ex. 2045 (Order Setting Jury Trial).
`The change in circumstances regarding the trial date does not
`persuade us to change our decision to exercise our discretion to deny
`institution. Even if we were to institute an inter partes review proceeding,
`the deadline for issuing a final written decision could be no earlier than
`February 2022. Thus, at this time, it appears likely that trial will occur many
`months before any final written decision would likely issue in this
`proceeding. Therefore, we maintain our finding that Fintiv Factor 2
`
`
`1 Exhibit 1027 consists of a thread of emails, with the most current being the
`email referenced above from Mr. Pearson. See Ex. 1027.
`
`4
`
`

`

`IPR2020-00583
`Patent 7,606,983 B2
`(proximity of the court’s trial date to the Board’s projected statutory
`deadline for a final written decision) weighs in favor of exercising our
`discretion to deny institution pursuant to 35 U.S.C. § 314(a).
`Second, Petitioner contends that we incorrectly weighed the identity
`and behavior of Patent Owner. See Req. Reh’g 14–15. We disagree. In our
`Decision, we considered Petitioner’s allegations regarding Patent Owner’s
`identity and conduct under Fintiv Factor 6 (other circumstances that impact
`the Board’s exercise of discretion, including the merits), and we noted that,
`“[e]ven if Petitioner’s contentions are true, the validity of the ’983 patent is
`at issue in the co-pending litigation, which is likely to go to trial well before
`the deadline for a final written decision in this proceeding.” Inst. Dec. 10.
`Accordingly, we maintain our finding that Petitioner’s “argument does not
`weigh against exercising our discretion to deny institution.” Id.
`Third, Petitioner contends that we erred in analyzing the overlap
`between the related district court litigation and this proceeding (Fintiv
`Factor 4) because we focused on the ’983 patent generally rather than the
`specific claims. Req. Reh’g 14. We disagree. Although we mentioned the
`validity of the ’983 patent, we did so in the context of addressing
`Petitioner’s arguments regarding Patent Owner’s identity and behavior under
`Fintiv Factor 6. In the context of Fintiv Factor 4 (overlap between issues
`raised in the petition and in the parallel proceeding), we found that, at the
`time of the Decision, the grounds and claims had a complete overlap
`between the related litigation and this proceeding. Inst. Dec. 8. Petitioner’s
`argument that Patent Owner would drop claims was too speculative at the
`time to result in weighing the factor differently. Id. at 8–9 (“the potential for
`claim differences alone does not negate that the same combinations of
`
`5
`
`

`

`IPR2020-00583
`Patent 7,606,983 B2
`references asserted in the Petition also are asserted in the Western District of
`Texas litigation”).
`After our Decision, Patent Owner narrowed the claims asserted in the
`related litigation such that only six of the twelve claims challenged in the
`Petition remain in the related litigation. Req. Reh’g 14 (citing Ex. 1025
`(Plaintiff VLSI Technology LLC’s Identification of Narrowed Claims
`Pursuant to the Court’s August 7, 2020 Order), 2). Thus, at present,
`claims 1, 4, 5, 9, 11, and 13 remain in the related litigation. Ex. 1025, 2. In
`contrast, Petitioner challenges claims 1–5, 7, 9, 11–14, and 16 in the
`Petition. Petition 3. Claims 1, 9, and 11 are the independent claims of the
`’983 patent. See Ex. 1001, 11:27–14:9 (claims listing). Each independent
`claim remains asserted in the related litigation. Ex. 1025, 2. The dependent
`claims no longer asserted in the related litigation (claims 2, 3, 7, 12, 14, and
`16) are substantially similar to the claims remaining in the related litigation
`such that the difference in claims does not result in tilting the scale in favor
`of not exercising our discretion to deny institution under Factor 4. Even if
`we weigh the new difference in claims in favor of Petitioner, the overlapping
`grounds and insubstantial differences between the claims no longer
`overlapping each weigh in favor of Patent Owner. Accordingly, on balance,
`we find that Factor 4 weighs neutrally, neither in favor of nor against
`exercising our discretion to deny institution.
`Considering all of the factors, the outcome of our balancing remains
`unchanged. In particular, Factors 1, 4, and 6 weigh neutrally. The related
`litigation involves the same parties as this proceeding. Fact and expert
`discovery has concluded and substantially all, if not all, motions have been
`briefed. Tr. 18:13–21. The trial date, even if not June 7, 2021, is still likely
`to be months before any final written decision could issue in this case; thus,
`
`6
`
`

`

`IPR2020-00583
`Patent 7,606,983 B2
`Factors 2, 3, and 5 weigh in favor of exercising discretion. After weighing
`all of the factors and taking a holistic view of the relevant circumstances, we
`maintain our finding that “instituting an inter partes review would be an
`inefficient use of the Board’s and parties’ resources.” Inst. Dec. 11.
`Accordingly, having considered Petitioner’s Rehearing Request,
`Petitioner has not persuaded us, for the reasons discussed, that the outcome
`of our Decision should be modified.
`
`III. ORDER
`For the foregoing reasons, it is:
`ORDERED that Petitioner’s Rehearing Request (Paper 24) is denied.
`
`
`
`
`7
`
`

`

`IPR2020-00583
`Patent 7,606,983 B2
`For PETITIONER:
`John V. Hobgood
`Donald R. Steinberg
`S. Calvin Walden
`WILMER, CUTLER, PICKERING, HALE AND DORR LLP
`John.Hobgood@wilmerhale.com
`Don.Steinberg@wilmerhale.com
`Calvin.Walden@wilmerhale.com
`
`
`For PATENT OWNER:
`Kenneth Weatherwax
`Bridget Smith
`Flavio Rose
`Edward Hsieh
`Parham Hendifar
`Patrick Maloney
`Jason Linger
`LOWENSTEIN & WEATHERWAX LLP
`weatherwax@lowensteinweatherwax.com
`smith@lowensteinweatherwax.com
`rose@lowensteinweatherwax.com
`hseih@lowensteinweatherwax.com
`hendifar@lowensteinweatherwax.com
`maloney@lowensteinweatherwax.com
`linger@lowensteinweatherwax.com
`
`
`8
`
`

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