`571-272-7822
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`Paper 7
`Date: February 12, 2021
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`UNITED STATES PATENT AND TRADEMARK OFFICE
`____________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`____________
`
`HUNTING TITAN, INC.,
`Petitioner,
`
`v.
`
`DYNAENERGETICS EUROPE GMBH,
`Patent Owner.
`____________
`
`PGR2020-00080
`Patent 10,472,938 B2
`____________
`
`
`
`Before JOSIAH L. COCKS, SCOTT A. DANIELS, and ERIC C.
`JESCHKE, Administrative Patent Judges.
`
`COCKS, Administrative Patent Judge.
`
`
`
`
`DECISION
`Denying Institution of Post-Grant Review
`35 U.S.C. § 324
`
`
`
`PGR2020-00080
`Patent 10,472,938 B2
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`I.
`
`INTRODUCTION
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`A. Background and Summary
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`Hunting Titan, Inc. (“Petitioner”) filed a Petition requesting post-grant
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`review of claims 1–20 of U.S. Patent No. 10,472,938 B2 (Ex. 1001, “the
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`’938 patent”). Paper 1 (“Pet.”). DynaEnergetics Europe GmbH (“Patent
`
`Owner”) filed a Preliminary Response to the Petition. Paper 6 (“Prelim.
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`Resp.”).1
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`
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`We have authority to determine whether to institute a post-grant
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`review. 35 U.S.C. § 324. For the reasons discussed below, we deny the
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`Petition and do not institute a post-grant review.
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`B. Related Proceedings
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`
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`Both parties identify the following matter involving the ’938 patent:
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`DynaEnergetics Europe GmbH, and DynaEnergetics US, Inc. v. Hunting
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`Titan, Ltd., that was initially Civil Action No. 6:20-cv-00069 in the Western
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`District of Texas but has since been transferred and is now Civil Action No.
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`4:20-cv-02123 in the Southern District of Texas. Pet. 2; Paper 4, 1–2.
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`
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`1 The Petition identified “DynaEnergetics GmbH & Co. KG” as the patent
`owner with respect to the ’938 patent. Pet. i (caption). In its Mandatory
`Notice (Paper 3), Patent Owner indicates that “DynaEnergetics GmbH &
`Co. KG has been dissolved and as recorded at Reel/Frame: 051691/0453 has
`assigned U.S. Patent No. 10,472,938 to DynaEnergetics Europe GmbH, the
`patent owner and real party in interest to this proceeding.” Paper 4 n.1. We,
`therefore, regard DynaEnergetics Europe GmbH as Patent Owner in this
`proceeding, which is reflected in the caption of this Decision.
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`2
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`PGR2020-00080
`Patent 10,472,938 B2
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`C. The ’938 Patent
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`
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`The ’938 patent is titled “Perforation Gun Components and System.”
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`Ex. 1001, code (54). The Abstract of the ’938 patent is reproduced below:
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`Components for a perforation gun system are provided
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`including combinations of components including a self-
`centralizing charge holder system and a bottom connector that
`can double as a spacer. Any number of spacers can be used with
`any number of holders for any desired specific metric or imperial
`shot density, phase and length gun system.
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`Id. at code (57).
`
`Figures 1 and 2 of the ’938 patent are reproduced below:
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`
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`Figure 1 above depicts “a side cut view of a perforation gun system
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`according to an embodiment.” Id. at 3:54–55. Figure 2 above shows “a side
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`view of a top connector, bottom connector and stackable charge holders of a
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`perforation gun system in accordance with another embodiment.” Id. at
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`3:56–58. Gun system 10 includes outer gun carrier 12 (shown in Figure 1),
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`top connector 14, stackable charge holder 16 for centralizing single shaped
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`3
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`Patent 10,472,938 B2
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`charge 18 within gun carrier 12, detonation cord 20 (shown in Figure 2), and
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`bottom connector 22. Id. at 5:38–46.
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`
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`Figure 27 of the ’938 patent is reproduced below:
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`
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`Figure 27 above shows a “perspective view of a detonator” according
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`to an embodiment. Id. at 4:42–43. Detonator assembly 26 includes
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`detonator head 100, detonator body 102, and a plurality of detonator wires
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`104, including through wire 106, signal-in wire 108, and ground wire 110.
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`Id. at 8:6–10.
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`4
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`Patent 10,472,938 B2
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`Figure 32 of the ’938 patent is reproduced below:
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`
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`Figure 32 above depicts “a detailed side view of a tandem seal adapter
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`and detonator” in accordance with an embodiment of the invention of the
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`’938 patent. Id. at 4:53–54. Figure 32 also shows connection of detonator
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`assembly 26 to tandem seal adapter 48 and pressure bulkhead 124. Id. at
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`8:28–31.
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`D. Illustrative Claim
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`Independent claims 1 is illustrative of the claimed subject matter and
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`is reproduced below:
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`1. A perforating gun, comprising:
`an outer gun carrier;
`a charge holder positioned within the outer gun carrier and
`including at least one shaped charge;
`a detonator contained entirely within the outer gun carrier,
`the detonator including
`a detonator body containing detonator components,
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`5
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`PGR2020-00080
`Patent 10,472,938 B2
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`a wireless signal-in connector, a wireless through
`wire connector, and a wireless ground contact connector,
`and
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`the wireless
`an insulator electrically isolating
`signal-in connector from the wireless through wire
`connector; and,
`a bulkhead, wherein the bulkhead includes a contact pin in
`wireless electrical contact with the wireless signal-in connector,
`wherein
`at least a portion of the bulkhead is contained within a
`tandem seal adapter, and the wireless ground contact connector
`is in wireless electrical contact with the tandem seal adapter.
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`Ex. 1001, 11:16–35.
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`E. Evidence Relied Upon
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`Petitioner relies upon the following references in asserting that the
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`challenged claims are unpatentable:
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`Reference
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`Publication/Patent Number
`
`Exhibit
`
`Black
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`US 2012/0247771 A1 published Oct. 4,
`2012
`
`Lendermon
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`US 4,744,424 issued May 17, 1988
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`Schacherer
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`US 9,689,223 B2 issued June 27, 2017
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`SLB Catalog
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`Harrigan
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`EWAPS
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`Rogman
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`Schlumberger 2008 Perforating Services
`Catalog
`US 2016/0084048 A1 published Mar. 24,
`2016
`2012 European and West African
`Perforating Symposium, Selective
`Perforation: A Game Changer in
`Perforating Technology- Case Study
`US 2015/0330192 A1 published Nov. 19,
`2015
`
`Lanclos
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`US 9,080,433 B2 issued July 14, 2015
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`Goodman
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`US 2008/0149338 A1 published June 26,
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`1002
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`1003
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`1004
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`1005
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`1012
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`1013
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`1014
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`1015
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`1018
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`2008
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`
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`Petitioner also relies upon the declaration testimony of Mr. Robert
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`Parrott (Ex. 1007) in support of its challenges.
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`F. Asserted Grounds of Unpatentability
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`
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`Petitioner asserts that claims 1–20 of the ’938 patent are unpatentable
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`on the following grounds (Pet. 4–5):
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`Claim(s) Challenged
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`35 U.S.C. §
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`Reference(s)/Basis
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`1–20
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`1–20
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`1, 2, 4, 5, 7–20
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`3, 6
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`1–20
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`112
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`112
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`102
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`103
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`103
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`1, 2, 4, 5, 7–9, 11–20 102
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`3, 6, 10
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`103
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`1, 2, 4, 5, 7–20
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`3, 6
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`1–20
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`102
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`103
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`103
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`“Indefinite”
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`“Written Description”
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`“Anticipated by Schacherer”
`
`“Obvious by Schacherer with
`common knowledge, Rogman,
`Harrigan, EWAPS, Lendermon,
`and/or Goodman”
`“Obvious by Schacherer with
`common knowledge, Black,
`Lanclos, Rogman, Harrigan,
`EWAPS, Goodman, and/or SLB
`Catalog”
`“Anticipated by Black”
`
`“Obvious by Black with common
`knowledge, Schacherer, Rogman,
`Harrigan, EWAPS, Lendermon,
`and/or Goodman”
`“Anticipated by Lanclos”
`
`“Obvious by Lanclos with
`common knowledge, Rogman,
`Harrigan, EWAPS, Lendermon
`and/or Goodman”
`“Obvious by Lanclos with
`common knowledge, Schacherer,
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`Claim(s) Challenged
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`35 U.S.C. §
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`Reference(s)/Basis
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`1–17, 19, 20
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`10, 19
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`1–20
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`1–9, 11–20
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`10, 19
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`1–6, 8–10, 12
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`7, 11, 13–20
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`1–17, 19, 20
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`1–20
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`102
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`103
`
`103
`
`102
`
`103
`
`102
`
`103
`
`102
`
`103
`
`Black, Rogman, Harrigan,
`EWAPS, Lendermon, Goodman,
`and/or SLB Catalog”
`“Anticipated by Rogman”
`
`“Obvious by Rogman with
`common knowledge, Schacherer,
`Harrigan, Black, Lanclos,
`EWAPS, and/or Lendermon”
`“Obvious by Rogman with
`common knowledge, Schacherer,
`Black, Lanclos, and/or EWAPS”
`“Anticipated by Harrigan”
`
`“Obvious by Harrigan with
`common knowledge, Schacherer,
`Black, Lanclos, Rogman,
`Harrigan, Goodman, and/or SLB
`Catalog”
`“Anticipated by EWAPS”
`
`“Obvious by EWAPS with
`common knowledge, Schacherer,
`Black, Lanclos, Rogman,
`Harrigan, Goodman, and/or SLB
`Catalog”
`“Anticipated by Goodman”
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`“Obvious by Goodman with
`common knowledge, Schacherer,
`Black, Lanclos, Rogman,
`Harrigan, EWAPS, and/or SLG
`Catalog”
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`II. ANALYSIS
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`There are certain “Requirements of Petition” that must be satisfied for
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`a Petition requesting a post-grant review to be considered. 35 U.S.C. §
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`322(a). Specifically, § 322(a)(3) mandates that “the petition identifies, in
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`writing and with particularity, each claim challenged, the grounds on which
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`the challenge to each claim is based, and the evidence that supports the
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`grounds for the challenge to each claim.” For the reasons that follow, we are
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`not satisfied that the Petition here satisfies the above-noted requirements.
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`At the outset, although the Petition purports to have nineteen proposed
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`grounds of unpatentability (Pet. 4–5), we discern that this is not an accurate
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`assessment of the actual number of proposed grounds. We focus first on the
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`grounds proffered on the basis of obviousness. Each of the ten proposed
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`obviousness grounds includes numerous references that are associated with
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`one another using the conjunction “and/or.” Id. For instance, one ground
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`proposing the unpatentability of claims 1–20 lists the involved references as
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`“Schacherer with common knowledge, Black, Lanclos, Rogman, Harrigan,
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`EWAPS, Goodman, and/or SLB Catalog.” Id. at 4 (Ground 5). This style is
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`endemic in the other proposed obviousness grounds.
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`Patent Owner characterizes that presentation style as creating a
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`“ballooning” effect that results in “over 1600 obviousness combinations” of
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`prior art, “the sheer volume of which would be impossible to address given
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`the constraints in these proceedings.” Prelim. Resp. 24–25. We agree with
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`Patent Owner. The conjunction “and/or” in the proposed obviousness
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`grounds creates a multitude of possible combinations of the references
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`applied to the claims of the ’938 patent. The result is presentation of
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`grounds that are uncertain and ill-defined. We also note, as does Patent
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`Owner (id.), that the Petition cites routinely to testimony of Mr. Parrott, who
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`refers to even more prior art references purportedly directed to what would
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`fall within the general rubric of “common knowledge.” See, e.g., Pet. 87,
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`93, 100, 113, 126, 138, 171 (citing various portions of Ex. 1007). The cited
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`portions of Mr. Parrott’s testimony serve to further heighten the uncertainty
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`with respect to the precise character and nature of the proposed grounds on
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`which Petitioner purports to rely.
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`Other panels of the Board tasked with determining whether to institute
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`trial in post-grant proceedings have considered circumstances analogous to
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`those present here. See, e.g., Adaptics Ltd. v. Perfect Co., IPR2018-01596,
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`Paper 20 at 19 (PTAB Mar. 6, 2019) (informative) (denying institution for
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`“lack of particularity that result[ed] in voluminous and excessive grounds”
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`where the petition’s catch-all ground relied on “up to ten references
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`connected by the conjunction ‘and/or,’” “yielding hundreds of possible
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`combinations”); Invue Sec. Prods., Inc. v. Mobile Tech., Inc., IPR2019-
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`00078, Paper 7 at 15 (PTAB May 1, 2019) (noting that “a Petition that
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`requires the panel or the Patent Owner” “to scour the Petition to discern
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`Petitioner’s evidence” lacks particularity and “is tantamount to
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`impermissibly shifting Petitioner’s burden under 35 U.S.C. § 312(a)(3)”);
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`PayPal, Inc. v. IoEngine, LLC, IPR2019-00931, Paper 16 at 29 (PTAB Oct.
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`29, 2019) (finding that the “multiplicity of theories” asserted by Petitioner
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`“for each claim element results in a burdensome number of potential
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`combinations for each claim”). Such panels have found a multiplicity of
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`grounds presented in a manner similar to the grounds in this Petition to lack
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`particularity as voluminous, excessive, and burdensome. Similarly, we
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`conclude that the manner in which the Petition formulates the proposed
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`grounds extends beyond merely burdensome and into the realm of near
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`indecipherability. As a result, we cannot view the Petition as presenting
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`grounds of unpatentability “with particularity” as 35 U.S.C. § 322(a)(3)
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`requires.
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`Moreover, in connection with all of the grounds, the Petition
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`frequently purports to account for claim limitations in the prior art by
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`careening between separate claim limitations in a manner that lacks logical
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`organization. For instance, the Petition begins its assessment of the claims
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`vis-à-vis the prior art by addressing features in the body of the claims related
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`to the detonator elements, such as the detonator body and wireless
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`connections (Pet. 11–38), well before addressing features that are initially
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`introduced in the claims in which those components reside, such as the gun
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`carrier (id. at 125–134). That approach is disjointed and difficult to follow.
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`Also, the Petition cites a litany of references one after another in near
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`laundry-list fashion, which results in a lack of focus and congruity. See, e.g.,
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`Pet. 11–38 (citing each of common knowledge, Schacherer, Harrigan,
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`Rogman, Black, Lanclos, EWAPS, and Goodman, as all allegedly
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`accounting for detonator elements of the claims). This approach requires the
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`panel and Patent Owner to attempt to formulate a ground or grounds of
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`unpatentability by essentially picking and choosing various features from
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`among the numerous references cited. The burden to establish, and cogently
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`explain, the proposed grounds of patentability, however, is on Petitioner, not
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`the panel or Patent Owner.
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`Further still, for the proposed grounds based on obviousness, we also
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`determine that Petitioner’s postulations as to reasons for combining the
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`various teachings of the prior art and “inherent . . . common knowledge” rely
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`on generalized statements that such combinations would, for instance, be
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`“predictable,” “simple substitution,” application of “known techniques,” and
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`“obvious to try.” See, e.g., Pet. 8–9. Notably lacking from the Petition is
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`specific, directed explanation of well-developed reasons why a person of
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`ordinary skill in the art would have modified or combined the teachings of
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`the prior art. The type of generalized discussion in this Petition bears
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`considerable resemblance to the unsuccessful approach that Petitioner took
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`in its opposition to a motion to amend in connection with another
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`proceeding, IPR2018-00600, which the Precedential Opinion Panel found
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`insufficient. See Ex. 2001, 24–25 (Hunting Titan, Inc. v. DynaEnergetics
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`Europe GmbH, IPR2018-00600, Paper 67 (PTAB July 6, 2020)
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`(precedential)). Here too, we conclude that Petitioner’s inadequate
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`discussion does not elevate itself to the level of articulated reasoning with
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`rational underpinnings that is necessary to support a motivation to combine
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`prior art teachings. See In re Kahn, 441 F.3d 977, 987 (Fed. Cir. 2006),
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`cited with approval in KSR Int’l Co. v. Teleflex Inc., 550 U.S. 398, 418
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`(2007).
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`The Supreme Court and the Federal Circuit have made it abundantly
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`clear that institution of a post-grant proceeding is a binary or all-or-nothing
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`decision. See SAS Inst. Inc. v. Iancu, 138 S. Ct. 1348, 1359 (2018)
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`(“[E]verything in the statute before us confirms that [the petitioner] is
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`entitled to a final written decision addressing all of the claims it has
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`challenged . . . .”); PGS Geophysical AS v. Iancu, 891 F.3d 1354, 1360 (Fed.
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`Cir. 2018) (“[35 U.S.C. § 314] require[s] a simple yes-or-no institution
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`choice respecting a petition, embracing all challenges included in the
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`petition . . . .”). We also are cognizant that there is no requirement that we
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`institute a post-grant review, as the decision whether to institute is
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`discretionary. See 35 U.S.C. § 324(a); see also Adaptics Ltd., Paper 20 at
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`17–24.2,3
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`With those principles in mind, we conclude that, irrespective of
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`whether there may be a potentially credible ground of unpatentability buried
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`among the voluminous and excessive possible grounds presented here,
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`institution of trial is not warranted.
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`
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`2 As articulated by the panel in Adaptics:
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`Even when a petitioner demonstrates a reasonable likelihood as
`to at least one claim, however, institution of an IPR remains
`discretionary. SAS, 138 S. Ct. at 1355 (Ҥ 314(a) invests the
`Director with discretion on the question whether to institute
`review”); Harmonic [Inc. v. Avid Tech., Inc.], 815 F.3d [1356,]
`1367 [(Fed. Cir. 2016)] (“First of all, the PTO is permitted, but
`never compelled, to institute an IPR proceeding.” (citing 35
`U.S.C. § 314(a))). As explained in our Trial Practice Guide
`Update, “[t]he Director’s discretion is informed by 35 U.S.C. §§
`316(b) and 326(b), which require the Director to ‘consider the
`effect of any such regulation [under this section] on the economy,
`the integrity of the patent system, the efficient administration of
`the Office, and the ability of the Office to timely complete
`proceedings instituted under this chapter.’” Trial Practice Guide
`Update, 10 at 9; see also Office Patent Trial Practice Guide,
`August 2018 Update, 83 Fed. Reg. 39,989 (Aug. 13, 2018)
`(discussing and providing link to Trial Practice Guide Update).
`
`3 Although the petition in Adaptics was seeking institution of an inter partes
`review rather than a post-grant review, the same principle of discretion to
`institute an inter partes review arising under § 314(a) also applies to a
`decision to institute a post-grant review under § 324(a).
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`III. CONCLUSION
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`
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`On this record, and for the reasons discussed above, we exercise our
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`discretion and decline to institute trial in this proceeding. See 35 U.S.C.
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`§ 324(a).
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`IV. ORDER
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`It is
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`ORDERED that the Petition is denied and no trial is instituted.
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`PETITIONER:
`
`Jason Saunders
`Christopher McKeon
`Gordon Arnold
`ARNOLD & SAUNDERS, LLP
`jsaunders@arnold-iplaw.com
`cmckeon@arnold-iplaw.com
`docketing@arnold-iplaw.com
`
`PATENT OWNER:
`
`Lisa J. Moyles
`Jason M. Rockman
`MOYLES IP, LLC
`lmoyles@moylesip.com
`jrockman@moylesip.com
`
`Barry J. Herman
`Preston H. Heard
`WOMBLE BOND DICKINSON (US) LLP
`barry.herman@wbd-us.com
`preston.heard@wbd-us.com
`
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