throbber
UNITED STATES PATENT AND TRADEMARK OFFICE
`__________________________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`__________________________________
`
`LULULEMON USA INC.,
`Petitioner,
`
`v.
`
`NIKE, INC.,
`Patent Owner.
`
`Case IPR2024-00460
`Patent 8,266,749
`
`DECLARATION OF DR. DAVID S. BROOKSTEIN IN SUPPORT OF
`PETITION FOR INTER PARTES REVIEW OF U.S. PATENT 8,266,749
`
`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
`
`

`

`TABLE OF CONTENTS
`
`Page No.
`
`
`I. INTRODUCTION ........................................................................................... 1
`
`II. BACKGROUND AND QUALIFICATIONS ............................................... 2
`
`III. LEGAL PRINCIPLES ................................................................................. 5
`
`A.
`
`Prior Art .......................................................................................... 6
`
`B.
`
`Anticipation .................................................................................... 6
`
`C.
`
`Obviousness .................................................................................... 6
`
`IV. THE ’749 PATENT ...................................................................................... 9
`
`A. Overview of the ’749 Patent ........................................................... 9
`
`B.
`
`Claims of the ’749 Patent ............................................................. 15
`
`C.
`
`Prosecution History of the ’749 Patent ........................................ 16
`
`D. Adidas IPR ................................................................................... 18
`
`V. LEVEL OF A PERSON OF ORDINARY SKILL IN THE ART
`(POSA).................................................................................................... 19
`
`VI. CLAIM CONSTRUCTION ....................................................................... 20
`
`A.
`
`“unitary construction” (Claims 11 and 21) .................................. 21
`
`B.
`
`“a first area and a second area with a unitary construction”
`(Claims 11 and 21) ....................................................................... 21
`
`C.
`
`“wide-tube circular knitting machine” (Claims 9 and 19) ........... 22
`
`D.
`
`“impart” (Claims 11 and 21) ........................................................ 22
`
`i
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
`
`

`

`TABLE OF CONTENTS
`(cont’d)
`
`Page No.
`
`E.
`
`F.
`
`“texture” (Claims 8, 11, and 21) .................................................. 22
`
`Other Terms .................................................................................. 23
`
`VII. TECHNOLOGY BACKGROUND .......................................................... 23
`
`VIII. OVERVIEW OF GROUNDS ................................................................. 38
`
`IX. GROUND 1: NISHIDA ANTICIPATES CLAIMS 1-8 AND 12-18 ........ 40
`
`A.
`
`Summary of Nishida (Ex.1004/1005) .......................................... 40
`
`B.
`
`Nishida Anticipates Claim 1 ........................................................ 44
`
`1.
`
`2.
`
`3.
`
`4.
`
`Preamble of Claim 1 .......................................................... 45
`
`Limitation 1[a]: “simultaneously knitting a textile
`element with a surrounding textile structure, the
`knitted textile element having at least one knitted
`texture that differs from a knitted texture in the
`surrounding knitted textile structure” ................................ 45
`
`Limitation 1[b]: “removing the knitted textile
`element from the surrounding knitted textile
`structure” ............................................................................ 51
`
`Limitation 1[c]: “incorporating the knitted textile
`element into the article of footwear” ................................. 51
`
`C.
`
`Nishida Anticipates Claim 2 ........................................................ 52
`
`D. Nishida Anticipates Claim 3 ........................................................ 55
`
`E.
`
`F.
`
`Nishida Anticipates Claim 4 ........................................................ 57
`
`Nishida Anticipates Claim 5 ........................................................ 58
`
`ii
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`TABLE OF CONTENTS
`(cont’d)
`
`Page No.
`
`G. Nishida Anticipates Claim 6 ........................................................ 59
`
`H. Nishida Anticipates Claim 7 ........................................................ 63
`
`I.
`
`J.
`
`Nishida Anticipates Claim 8 ........................................................ 64
`
`Nishida Anticipates Claim 12 ...................................................... 65
`
`K. Nishida Anticipates Claim 13 ...................................................... 66
`
`1.
`
`2.
`
`3.
`
`4.
`
`5.
`
`Preamble ............................................................................. 66
`
`Limitation 13[a]: “knitting a first textile element and
`a second textile element simultaneously with knitting
`a surrounding textile structure, the first knitted textile
`element located within a first portion of the knitted
`textile structure, the second knitted textile element
`located within a second portion of the knitted textile
`structure” ............................................................................ 66
`
`Limitation 13[b]: “varying at least one of the types of
`stitches or the types of yarns in the knitted textile
`structure to impart a texture to the first and second
`knitted textile elements different from a texture of the
`knitted textile structure extending between the first
`and second portions” .......................................................... 67
`
`Limitation 13[c]: “removing the first and second
`knitted textile elements from the knitted textile
`structure” ............................................................................ 69
`
`Limitation 13[d]: “incorporating at least one of the
`first and second knitted textile elements into the
`article of footwear” ............................................................ 69
`
`iii
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`TABLE OF CONTENTS
`(cont’d)
`
`Page No.
`
`L.
`
`Nishida Anticipates Claim 14 ...................................................... 70
`
`M. Nishida Anticipates Claim 15 ...................................................... 70
`
`N. Nishida Anticipates Claim 16 ...................................................... 71
`
`O. Nishida Anticipates Claim 17 ...................................................... 71
`
`P.
`
`Nishida Anticipates Claim 18 ...................................................... 71
`
`X. GROUND 2: NISHIDA IN VIEW OF A POSA’S GENERAL
`KNOWLEDGE RENDERS OBVIOUS CLAIMS 9-10 AND 19-
`20 ............................................................................................................ 72
`
`XI. GROUND 3: ZUCKERMAN ANTICIPATES CLAIMS 1-3, 5-8,
`11, 13-17, AND 21 ................................................................................. 78
`
`A.
`
`Summary of Zuckerman (Ex.1008) .............................................. 78
`
`B.
`
`Zuckerman Anticipates Claim 1 ................................................... 81
`
`1.
`
`2.
`
`3.
`
`4.
`
`Preamble of Claim 1 .......................................................... 81
`
`Limitation 1[a]: “simultaneously knitting a textile
`element with a surrounding textile structure, the
`knitted textile element having at least one knitted
`texture that differs from a knitted texture in the
`surrounding knitted textile structure” ................................ 81
`
`Limitation 1[b] “removing the knitted textile element
`from the surrounding knitted textile structure” ................. 87
`
`Limitation 1[c]: “incorporating the knitted textile
`element into the article of footwear” ................................. 87
`
`C.
`
`Zuckerman Anticipates Claim 2 ................................................... 88
`
`iv
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`TABLE OF CONTENTS
`(cont’d)
`
`Page No.
`
`D.
`
`Zuckerman Anticipates Claim 3 ................................................... 89
`
`E.
`
`F.
`
`Zuckerman Anticipates Claim 5 ................................................... 90
`
`Zuckerman Anticipates Claim 6 ................................................... 91
`
`G.
`
`Zuckerman Anticipates Claim 7 ................................................... 92
`
`H.
`
`Zuckerman Anticipates Claim 8 ................................................... 93
`
`I.
`
`J.
`
`Zuckerman Anticipates Claim 11 ................................................. 94
`
`Zuckerman Anticipates Claim 13 ................................................. 95
`
`1.
`
`2.
`
`3.
`
`4.
`
`Preamble ............................................................................. 95
`
`Limitation 13[a]: “knitting a first textile element and
`a second textile element simultaneously with knitting
`a surrounding textile structure, the first knitted textile
`element located within a first portion of the knitted
`textile structure, the second knitted textile element
`located within a second portion of the knitted textile
`structure” ............................................................................ 95
`
`Limitation 13[b]: “varying at least one of the types of
`stitches or the types of yarns in the knitted textile
`structure to impart a texture to the first and second
`knitted textile elements different from a texture of the
`knitted textile structure extending between the first
`and second portions” .......................................................... 97
`
`Limitation 13[c]: “removing the first and second
`knitted textile elements from the knitted textile
`structure” ............................................................................ 99
`
`v
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
`
`

`

`TABLE OF CONTENTS
`(cont’d)
`
`Page No.
`
`5.
`
`Limitation 13[d]: “incorporating at least one of the
`first and second knitted textile elements into the
`article of footwear” ............................................................ 99
`
`K.
`
`Zuckerman Anticipates Claim 14 ................................................. 99
`
`L.
`
`Zuckerman Anticipates Claim 15 ............................................... 100
`
`M.
`
`Zuckerman Anticipates Claim 16 ............................................... 101
`
`N.
`
`Zuckerman Anticipates Claim 17 ............................................... 101
`
`O.
`
`Zuckerman Anticipates Claim 21 ............................................... 101
`
`XII. GROUND 4: ZUCKERMAN IN VIEW OF A POSA’S GENERAL
`KNOWLEDGE RENDERS OBVIOUS CLAIMS 3, 9-10, 14,
`AND 19-20 ........................................................................................... 102
`
`A.
`
`Claims 3 and 14 .......................................................................... 102
`
`B.
`
`Claims 9-10 and 19-20 ............................................................... 105
`
`XIII. GROUND 5: ZUCKERMAN IN VIEW OF DOUGHTY
`RENDERS OBVIOUS CLAIM 12 ...................................................... 107
`
`A.
`
`Summary of Doughty (Ex.1017) ................................................ 107
`
`B.
`
`Claim 12 ..................................................................................... 108
`
`XIV. GROUND 6: NISHIDA IN VIEW OF ZUCKERMAN RENDERS
`OBVIOUS CLAIMS 11 AND 21 ......................................................... 112
`
`XV. SECONDARY CONSIDERATIONS ..................................................... 116
`
`XVI. CONCLUSION...................................................................................... 117
`
`vi
`
`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
`
`

`

`
`
`I. INTRODUCTION
`
`1.
`
`I, Dr. David S. Brookstein, submit this declaration on behalf of
`
`lululemon usa inc. (“Petitioner”). I understand that this declaration will be submitted
`
`as Exhibit 1003 in support of a Petition for Inter Partes Review (“IPR”) of U.S.
`
`Patent No. 8,266,749 (“the ’749 patent”) along with the exhibits listed in the table
`
`below.
`
`Exhibit No.
`
`Description
`
`1001
`
`U.S. Patent No. 8,266,749 to Dua, et al.
`
`1002
`
`Excerpts of Prosecution History for U.S. Patent No. 8,266,749
`
`1004
`
`International Patent Publication No. WO 92/22223 to Nishida
`(“Nishida”)
`
`1005
`
`English Translation of Nishida (Ex.1005)
`
`1006
`
`U.S. Patent No. 1,803,554 to Knilans (“Knilans”)
`
`1007
`
`U.S. Patent No. 2,147,197 to Glidden (“Glidden”)
`
`1008
`
`U.S. Patent No. 2,047,724 to Zuckerman (“Zuckerman”)
`
`1009
`
`Spencer, Knitting Technology: A Comprehensive Handbook and
`Practical Guide, Chapters 2-3, 6-9, 12-13, 16-18, 20, 24, and 28-29,
`Third Edition, 2001 (“Spencer”)
`
`1010
`
`Excerpts of Man-Made Fiber and Textile Dictionary, Fourth
`Edition, Issued 1978, Reprinted 1983
`
`1011
`
`JP 2002-65303A to Tani, et al. (“Tani”)
`
`1012
`
`English Translation of Tani (Ex.1011)
`
`1013
`
`U.S. Patent No. 5,345,638 to Nishida (“Nishida-US”)
`
`1
`
`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`
`
`
`
`Exhibit No.
`
`Description
`
`1014
`
`Curriculum Vitae of Dr. David S. Brookstein
`
`1015
`
`1016
`
`Joint Disputed Claim Terms Chart, Nike, Inc. v. lululemon usa inc.,
`C.A. No. 1:23-cv-00771-AS (S.D.N.Y.)
`
`Lewis, et al., A Machine Knitter’s Guide to Creating Fabrics, Part
`1: Chapters 1-2 and Part 2: Chapters 1, 4, 6, and 13, 1986
`
`1017
`
`U.S. Patent No. 2,675,631 to Doughty (“Doughty”)
`
`1018
`
`1019
`
`1020
`
`1021
`
`1022
`
`Adidas AG v. Nike, Inc., IPR2016-00922, Paper 2 (Petition for Inter
`Partes Review) (P.T.A.B. Apr. 19, 2016)
`
`Adidas AG v. Nike, Inc., IPR2016-00922, Paper 6 (Institution
`Decision) (P.T.A.B. Oct. 10, 2016)
`
`Adidas AG v. Nike, Inc., IPR2016-00922, Paper 9 (Patent Owner
`Response) (P.T.A.B. Jan. 23, 2017)
`
`Adidas AG v. Nike, Inc., IPR2016-00922, Paper 21 (Final Written
`Decision) (P.T.A.B. Oct. 19, 2017)
`
`Adidas AG v. Nike, Inc., IPR2016-00922, Paper 31 (Decision on
`Remand) (P.T.A.B. Feb. 19, 2019)
`
`1023 Wingate, Excerpts of Fairchild’s Dictionary of Textiles, Sixth
`Edition, 1979
`
`2.
`
`This declaration is provided after my review and analysis of the ’749
`
`patent, the prior art, relevant background technology, and is also based on my
`
`education and experience, as well as additional materials identified herein.
`
`II. BACKGROUND AND QUALIFICATIONS
`
`3.
`
`I am qualified to testify as an expert in this case. I was awarded a
`
`Bachelor of Textile Engineering degree from the Georgia Institute of Technology
`
`2
`
`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`
`
`(“Georgia Tech”) in 1971, a Master of Science degree in Textile Technology from
`
`the Massachusetts Institute of Technology (“MIT”) in 1973, and a Doctor of Science
`
`degree in the field of mechanical engineering from MIT in 1976.
`
`4.
`
`I was a professor of Textile Engineering at Georgia Tech from 1975-
`
`1980. I was Associate Director of Albany International Research Co. (formerly
`
`Fabric Research Laboratories) from 1980-1994. I was Dean of the School of
`
`Engineering and Textiles and Executive Director of Research at Philadelphia
`
`University (formerly Philadelphia College of Textiles and Science) from 1994 to
`
`2010. In 2010, I was appointed Executive Dean for University Research at
`
`Philadelphia University and served in that position through June 2012. In July 2012,
`
`I resigned from Philadelphia University to become Dean of the Science, Technology,
`
`Engineering, and Mathematics Division of Montgomery County Community
`
`College in Pennsylvania. In August 2014, I was appointed Professor of Mechanical
`
`Engineering and Director of Undergraduate Affairs at the Temple University
`
`College of Engineering, and in July 2017 I was promoted to Senior Associate Dean
`
`for Undergraduate Studies at the Temple University College of Engineering. I retain
`
`my rank of Professor of Mechanical Engineering and I am responsible for the
`
`capstone senior design course required of all engineering graduates. In 1995 I was
`
`elected by my peers as a Fellow of the American Society of Mechanical Engineers,
`
`which is an honorific awarded to only about 1% of its members. In 1992 I was
`
`3
`
`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`
`
`elected by my peers as a Fellow of The Textile Institute (United Kingdom). In 1998
`
`I was awarded the ASTM Harold Dewitt Smith Award for textile fiber utilization.
`
`In 1993 I was awarded the Techtextil Innovation Prize (Germany). I have conducted
`
`research on knitting when I was employed at the Albany International Research Co.
`
`(formerly Fabric Research laboratories, Inc.). I taught courses in knitting technology
`
`during my period as an assistant professor of textile engineering at Georgia Tech and
`
`as Dean of Engineering and Textiles at Philadelphia University (formerly
`
`Philadelphia College of Textiles and Science).
`
`5.
`
`I am the named inventor on 13 U.S. patents, all of which relate to the
`
`to the field of structures made using the principles of textile engineering and science.
`
`6.
`
`I attended the 12th International Textile Machinery Exhibition (ITMA
`
`95) in 1995 held in Milan, Italy, where I saw the Shima Seiki WHOLEGARMENT®
`
`flat weft knitting machine and learned about its capabilities.
`
`7.
`
`A copy of my curriculum vitae, provided as Exhibit 1014, contains
`
`further details concerning my education, experience, publications, patents, and other
`
`qualifications to render an expert opinion in this matter.
`
`8.
`
`I am being compensated for my work in this matter at my standard
`
`hourly rate for consulting services. My compensation in no way depends on the
`
`outcome of this proceeding. I have no personal or financial stake or interest in the
`
`outcome of this proceeding.
`
`4
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`
`
`9.
`
`I understand that Petitioner will cite and rely on significant portions of
`
`my testimony and analysis set forth in this declaration in support of its Petition
`
`challenging the patentability of the ’749 patent. I have not been provided or
`
`reviewed the Petition or any drafts of the Petition, and, thus, the Petition or drafts of
`
`the Petition have not influenced my testimony or analysis set forth in this declaration.
`
`10. Between now and such time that I may be asked to testify, I expect to
`
`continue my review, evaluation, and analysis of evidence presented before and/or at
`
`the hearing. I expect to review the declarations and other evidence submitted by
`
`Nike’s experts. I reserve the right to amend or supplement this declaration, as
`
`appropriate, after considering any opinions set forth by Nike’s experts. In the event
`
`that additional relevant information becomes available to me, I also reserve the right
`
`to review and consider that information in further developing or refining my
`
`opinions.
`
`III. LEGAL PRINCIPLES
`
`11.
`
`I am not an attorney or patent agent. Therefore, in formulating my
`
`opinions and conclusions in this proceeding, I have been provided with an
`
`understanding of the relevant aspects of U.S. patent law that govern the issues of
`
`patent validity by counsel for the Petitioner.
`
`5
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`
`
`A.
`
`Prior Art
`
`12.
`
`I understand that, in this IPR proceeding, the prior art to the ʼ749 patent
`
`includes patents and printed publications in the relevant field(s) that predate the ʼ749
`
`patent’s priority date.
`
`B. Anticipation
`
`13.
`
`I understand that a person cannot obtain a patent if someone else
`
`already made an identical invention, which is referred to as “anticipation.” I
`
`understand that to anticipate a claim, each and every element in the claim must be,
`
`as properly construed, present in a prior art reference either expressly and/or
`
`inherently.
`
`C. Obviousness
`
`14.
`
`I understand that a claim of a patent may be obvious to a person of
`
`ordinary skill in the art if the differences between the subject matter set forth in the
`
`patent claim and the prior art are such that the claimed subject matter as a whole
`
`would have been obvious at the time of the invention.
`
`15.
`
`I understand that obviousness is a determination of law based on
`
`various underlying determinations of fact. In particular, these underlying factual
`
`determinations include (1) the scope and content of the prior art; (2) the level of
`
`ordinary skill in the art at the time the claimed invention was made; (3) the
`
`differences between the claimed invention and the prior art; and (4) the extent of any
`
`6
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`
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`proffered objective “indicia” of non-obviousness. I understand that the objective
`
`indicia, also known as secondary considerations, which may be considered in such
`
`an analysis include, among other factors: the commercial success of the patented
`
`invention (including evidence of industry recognition or awards), the existence of a
`
`long-felt but unmet need in the field satisfied by the invention, the failure of others
`
`to arrive at the invention, industry acquiescence and recognition of the invention,
`
`initial skepticism of the invention by others in the field, the extent to which the
`
`inventors proceeded in a direction contrary to the accepted wisdom of those of
`
`ordinary skill in the art, and licensing of the patent.
`
`16.
`
`In determining the scope and content of the prior art, I understand a
`
`reference is considered prior art for the obviousness analysis if it falls within the
`
`inventors’ field of endeavor. Additionally, a reference is prior art for the
`
`obviousness analysis, even if from a different field of endeavor, if it is reasonably
`
`pertinent to the particular problem for which the invention was made. A reference
`
`is reasonably pertinent if it is something a person of ordinary skill in the art would
`
`have looked to when attempting to solve the problem addressed by the patent at
`
`issue.
`
`17. While multiple prior art references or elements may be combined to
`
`render a patent claim obvious, I understand that a patent claim composed of several
`
`elements is not proven obvious merely by demonstrating that each of its elements
`
`7
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`

`
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`was, independently, known in the prior art. I understand that I should consider
`
`whether there is an “apparent reason” or motivation to combine the prior art
`
`references or elements in the way the patent claims. It is my further understanding
`
`that the law recognizes several rationales for combining references or modifying a
`
`reference to show obviousness of claimed subject matter. Some of these rationales
`
`include: combining prior art elements according to known methods to yield
`
`predictable results; simple substitution of one known element for another to obtain
`
`predictable results; a predictable use of prior art elements according to their
`
`established functions; applying a known technique to a known method or product
`
`ready for improvement; and choosing from a finite number of identified, predictable
`
`solutions, with a reasonable expectation of success.
`
`18.
`
`I understand the obviousness analysis must be performed from the
`
`perspective of a person of ordinary skill in the art at the time of the alleged invention.
`
`This is to avoid using impermissible hindsight in the analysis. The claims of the
`
`patent must not be used to provide a road map for obviousness; instead, the claims
`
`would have been obvious if a person of ordinary skill in the art would have been
`
`motivated to combine the teachings of the prior art to arrive at the claimed invention
`
`and had a reasonable expectation of success in doing so.
`
`19. An obviousness analysis also must consider whether there are
`
`additional factors that would indicate that the invention would not have been
`
`8
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`

`

`
`
`obvious. These factors include whether there was: (i) a long-felt need in the industry;
`
`(ii) any unexpected results; (iii) skepticism of the invention; (iv) a teaching away
`
`from the invention; (v) commercial success; (vi) praise by others for the invention;
`
`and (vii) copying by others. I am not aware of any evidence that would suggest that
`
`claims 1-21 (“challenged claims”) of the ’749 patent would have been non-obvious
`
`based on these additional factors.
`
`IV. THE ’749 PATENT
`
`A. Overview of the ’749 Patent
`
`20. The ’749 patent provides that it discloses an article of footwear with an
`
`upper which incorporates a knitted textile element. Ex.1001, 3:27-39. According to
`
`the ’749 patent, the knitted textile element “may be formed as part of a larger textile
`
`element” (id., 5:45-46), such as a textile element 60 with multiple knitted textile
`
`elements 40 (colored green) and a surrounding structure (colored purple) as shown
`
`in Figure 9 below. Id., 7:53-60.
`
`9
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`lululemon Ex. 1003
`IPR Petition - USP 8,266,749
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`
`
`Id., Fig. 9 (annotated). Figure 9 shows textile structure 60 “exhibit[ing] a generally
`
`cylindrical configuration” because textile structure 60 was knit on a “wide-tube
`
`circular knitting machine.” Id., 7:38-40, 11:15-18. A POSA would have known that
`
`this type of knitting machine produces a weft knit fabric.
`
`21. The ’749 patent discloses the following about a circular knitting
`
`machine:
`
`A wide-tube circular knitting machine, as produced by Santoni S.p.A.,
`forms a generally cylindrical textile structure and is capable of forming
`various types of stitches within a single textile structure. In general, the
`wide-tube circular knitting machine may be programmed to alter the
`design on the textile structure through needle selection. That is, the type
`of stitch that is formed at each location on the textile structure may be
`selected by programming the wide-tube circular knitting machine such
`that specific needles either accept or do not accept yarn at each stitch
`location. In this manner, various patterns, textures, or designs may be
`selectively and purposefully imparted to the textile structure.
`
`Id. 7:26-37.
`
`10
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`
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`22. The ’749 patent provides that “[e]ach textile element 40 is then
`
`removed from textile structure 60 with a die-cutting, laser-cutting, or other
`
`conventional cutting operation.” Id., 8:4-6. Textile element 40 that has been
`
`removed from textile structure 60 is shown in Figure 8 of the ’749 patent.
`
`
`
`Id., Fig. 8. According to the ’749 patent, “[i]n order to join edges 41a and 41b to
`
`form seam 51, textile element 40 is folded or otherwise overlapped such that edge
`
`41a is placed adjacent to edge 41b.” Id., 6:9-11. “Stitching, an adhesive, or heat
`
`bonding, for example, is then utilized to secure edge 41a and edge 41b.” Id., 6:11-
`
`13. This is shown in Figure 7 of the ’749 patent.
`
`11
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`
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`Id., Fig. 7 (annotated, partially magnified). The ’749 patent discloses that “[o]nce
`
`textile element 40 is removed from textile structure 60, seams 51-54 may be formed
`
`[as shown in Figures 2 and 3 below] and textile element 40 may be incorporated into
`
`footwear 10 [as shown in Figure 1 below].” Id., 8:6-8.
`
`
`
`
`
`
`
`12
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`Id., Figs. 1-3.
`
`23. The ’749 patent discloses other implementations in which textile
`
`structure 60 is “formed with the jacquard double needle-bar raschel,” which results
`
`in “a flat configuration” rather than the cylindrical configuration shown in Figure 9.
`
`Id., 11:15-18. A POSA would have known that a raschel knitting machine produces
`
`a warp knit fabric.
`
`24. The ’749 patent states that textile materials for footwear may be
`
`selected for the properties of wear-resistance, flexibility, and air-permeability, as
`
`well as moisture wicking which removes perspiration from the foot. Id., 10:40-48.
`
`25. The ’749 patent provides that different textures may be included in
`
`different areas of the knitted textile element. Id., 9:18-28. Such different textures
`
`exhibit “aesthetic differences” or “structural” differences like varying stretch, wear
`
`resistance, or air-permeability. Id., 9:42-46. The ’749 patent discloses that such
`
`different textures may be formed by varying “stitch configuration” and “yarn type.”
`
`Id., 9:58-10:7, 3:33-37. Figures 10 and 11 illustrate uppers with multiple textures,
`
`with the textures being designated with the reference numbers 46’-47’ and 46”-48”.
`
`Id., 9:18-57.
`
`13
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`lululemon Ex. 1003
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`
`
`
`
`Id., Figs. 10-11. For example, textile element 40” includes three areas that each have
`
`a different texture, where texture 46” is generally smooth, texture 47” is generally
`
`rough in comparison with first texture 46”, and texture 48” corresponds to an instep
`
`region (i.e., the part of the upper which covers a top of the foot) and is formed to
`
`include a plurality of apertures that extend through textile element 40”. Id., 9:31-
`
`49. The ’749 patent also provides that one texture in the knitted textile element can
`
`vary from one texture in the surrounding area of a larger textile element from which
`
`the knitted textile element is removed. Id., Claim 1.
`
`26. The ’749 patent acknowledges that knitting machines for constructing
`
`the textile elements disclosed were known. Id., 7:9-25, 8:61-9:4. The ’749 patent
`
`does not provide that any modifications were required to the conventional operation
`
`of such known knitting machines to implement the disclosed methods.
`
`14
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`
`
`B. Claims of the ’749 Patent
`
`27.
`
`I have included independent claim 1 below with bracketed labels added
`
`for convenient referencing to the claim limitations.
`
`Claim 1
`
`1[pre]
`
`1[a]
`
`A method of manufacturing an article of footwear, the method
`comprising:
`
`simultaneously knitting a textile element with a surrounding textile
`structure, the knitted textile element having at least one knitted
`texture that differs from a knitted texture in the surrounding
`knitted textile structure;
`
`1[b]
`
`removing the knitted textile element from the surrounding knitted
`textile structure;
`
`1[c]
`
`incorporating the knitted textile element into an article of footwear.
`
`
`
`15
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`IPR Petition - USP 8,266,749
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`

`

`
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`28.
`
`I have included independent claim 13 of the ’749 patent below with
`
`bracketed labels added for reference:
`
`Claim 13
`
`13[pre]
`
`A method of manufacturing an article of footwear, the method
`comprising:
`
`13[a]
`
`13[b]
`
`13[c]
`
`13[d]
`
`knitting a first textile element and a second textile element
`simultaneously with knitting a surrounding textile structure, the
`first knitted textile element located within a first portion of the
`knitted textile structure, the second knitted textile element
`located within a second portion of the knitted textile structure,
`
`varying at least one of the types of stitches or the types of yarns in
`the knitted textile structure to impart a texture to the first and
`second knitted textile elements different from a texture of the
`knitted textile structure extending between the first and second
`portions;
`
`removing the first and second knitted textile elements from the
`knitted textile structure;
`
`incorporating at least one of the first and second knitted textile
`elements into the article of footwear.
`
`
`C.
`
`Prosecution History of the ’749 Patent
`
`29.
`
`I have reviewed the prosecution history of the application that led to the
`
`’749 patent. During prosecution of the ’749 patent, the Examiner issued two
`
`substantive office actions. Ex.1002, 40-45, 22-27. The office actions rejected
`
`claims 1-8, 11-18, and 21, which are the same as issued claims 1-8, 11-18, and 21,
`
`as being anticipated by U.S. Patent No. 5,345,638 (Nishida-US – Ex.1013). Id.
`
`Nishida-US is a U.S. national phase of a reference, the Nishida PCT application
`
`16
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`IPR Petition - USP 8,266,749
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`

`
`
`(Nishida – Ex.1004/Ex.1005), which is relied on in grounds of my analysis. In
`
`addition, the office actions indicated claims 9, 10, 19, and 20 include allowable
`
`subject matter. Id. Claims 9, 10, 19, and 20 recite types of knitting machines (i.e.,
`
`claims 9 and 19 recite that the article of footwear is produced on “a wide-tube
`
`circular knitting machine” and claims 10 and 19 recite that the article of footwear is
`
`produced on “a jacquard double needle-bar raschel knitting machine”) and are the
`
`same as issued claims 9, 10, 19, and 20.
`
`30.
`
`In reply to the first office action, Patent Owner asserted that Nishida-
`
`US does not disclose “a knitted textile element simultaneously formed with a knitted
`
`textile structure during a knitting process.” Id., 35. Patent Owner specifically stated
`
`that Nishida-US discloses knitting a backing material and later knitting layouts onto

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