`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
` SUPERCELL OY,
` Petitioner,
`
`v.
`
` GREE, INC.,
` Patent Owner.
`
`Case PGR2020-00088
`U.S. Patent No. 10,518,177
`
`PATENT OWNER’S RESPONSE TO
`PETITIONER’S REQUEST FOR REHEARING UNDER 37 C.F.R. §42.71
`
`
`
`TABLE OF CONTENTS
`
`I.
`
`B.
`
`C.
`
`Page
`The Petition Was Appropriately Denied Under § 324(a) ................................ 1
`A.
`The Board’s Conclusion Regarding Factor 2 Does Not
`Misapprehend or Overlook Fact Findings ............................................. 1
`The Board’s Conclusion Regarding Factor 2 Does Not
`Misapprehend or Overlook Fact Findings ............................................. 3
`The Board’s Conclusion Regarding Factor 4 Does Not
`Rest on Clearly Erroneous Fact Findings.............................................. 3
`The Board’s Conclusion Regarding Factor 6 Is Not
`Clearly Unreasonable, Arbitrary, or Fanciful ....................................... 4
`The Board Did Not Abuse Its Discretion In Denying
`Institution Under § 324(a) In Accordance with Fintiv .......................... 5
`
`D.
`
`E.
`
`i
`
`
`
`TABLE OF AUTHORITIES
`
`Page(s)
`
`Cases
`Amazon.com, Inc. v. Vocalife LLC,
`IPR2020-00864, Paper 22 (P.T.A.B. Oct. 28, 2020) ............................................ 2
`Apple Inc. v. Fintiv, Inc.,
`IPR2020-00019, Paper 11 (P.T.A.B. Mar. 20, 2020) ................................. passim
`Supercell Oy v. GREE, Inc.,
`PGR2020-00034, Paper 17 (P.T.A.B. Nov. 2, 2020) ........................................... 5
`
`ii
`
`
`
`LIST OF EXHIBITS
`
`Exhibit No.
`2001
`
`Description
`Third Amended Docket Control Order, GREE, Inc. v. Supercell
`Oy, Civil Action No. 2:19-cv-00413, Document 98 (E.D. Tex.
`Dec. 30, 2020)
`
`2002
`
`2003
`
`2004
`
`2005
`
`2006
`
`2007
`
`2008
`
`2009
`
`2010
`
`Complaint, GREE, Inc. v. Supercell Oy, Civil Action No. 2:19-cv-
`00413, Document 1 (E.D. Tex. Dec. 31, 2019)
`
`Defendant Supercell Oy’s Preliminary Ineligibility Contentions,
`GREE, Inc. v. Supercell Oy, Civil Action No. 2:19-cv-00413 (E.D.
`Tex.), dated June 1, 2020
`
`Defendant Supercell Oy’s Invalidity Contentions and Disclosures
`Under Local Patent Rules 3-3 and 3-4, GREE, Inc. v. Supercell Oy,
`Civil Action No. 2:19-cv-00413 (E.D. Tex.), dated June 1, 2020
`
`Exhibit A-4 to Defendant Supercell Oy’s Invalidity Contentions
`and Disclosures Under Local Patent Rules 3-3 and 3-4, GREE, Inc.
`v. Supercell Oy, Civil Action No. 2:19-cv-00413 (E.D. Tex.),
`dated June 1, 2020
`
`Excerpts of the Expert Report of Stacy Friedman, GREE, Inc. v.
`Supercell Oy, Civil Action No. 2:19-cv-00413 (E.D. Tex.), dated
`December 23, 2020
`
`Buehler, Katie, ‘Clash of Clans’ Game Maker Owes $8.5M, Texas
`Jury Says, Law360 (September 18, 2020)
`
`Order, Solas OLED Ltd. v. Samsung Display Co., Ltd. et al., Civil
`Action No. 2:19-cv-001520, Document 302 (E.D. Tex. Nov. 20,
`2020)
`
`Claim Construction Memorandum Opinion and Order, GREE, Inc.
`v. Supercell Oy, Civil Action No. 2:19-cv-00413, Document 85
`(E.D. Tex. Nov. 6, 2020)
`
`Notice of Hearing, GREE, Inc. v. Supercell Oy, Civil Action No.
`2:19-cv-00413 (E.D. Tex. Jan. 7, 2021)
`
`iii
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`
`
`Exhibit No.
`2011
`
`Description
`Fourth Amended Docket Control Order, GREE, Inc. v. Supercell
`Oy, Civil Action No. 2:19-cv-00413, Document 100 (E.D. Tex.
`Jan. 29, 2021)
`
`2012
`
`2013
`
`2014
`
`Joint Motion to Amend Docket Control Order, GREE, Inc. v.
`Supercell Oy, Civil Action No. 2:19-cv-00413, Document 137
`(E.D. Tex. Mar. 5, 2021)
`
`Second Amended Docket Control Order, GREE, Inc. v. Supercell
`Oy, Civil Action No. 2:20-cv-00113, Document 49 (E.D. Tex.
`Dec. 30, 2020)
`
`Amended Docket Control Order, GREE, Inc. v. Supercell Oy, Civil
`Action No. 2:19-cv-00413, Document 139 (E.D. Tex. Mar. 9,
`2021)
`
`iv
`
`
`
`I.
`
`The Petition Was Appropriately Denied Under § 324(a)
`The Board did not abuse its discretion in denying institution based on “a
`
`holistic analysis” of the Fintiv Order Factors. Paper 11 (“Decision”), at 13. The
`
`Board found that, “[i]n this case, all of the factors weigh in Patent Owner’s favor
`
`except for the first and sixth factors which are neutral.” Id. And overall, the Board
`
`found that “[a] balancing of the facts and circumstances”—including the “trial date,
`
`investment, overlap, and same parties factors”—“leads [the Board] to conclude, on
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`this record, that the inefficient duplication of efforts here is likely.” Id.
`
`Petitioner’s Request for Rehearing of that Decision boldly asks the Board to
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`wholly ignore the impending trial between the parties regarding the subject patent
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`(i.e., Factors 2, 3, and 5) and simply find “Factors 4 and 6 to be definitive.” Paper
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`12 (“Request”), at 6. This is improper and incorrect. The Board’s precedential order
`
`in Fintiv prescribes a holistic review and evaluation of all six Fintiv Factors to
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`determine “whether efficiency and integrity of the system are best served by denying
`
`or instituting review.” Apple Inc. v. Fintiv, Inc., IPR2020-00019, Paper 11, at 6
`
`(P.T.A.B. Mar. 20, 2020). The Board performed such a full and proper analysis in
`
`its Decision, and thus did not abuse its discretion in denying institution.
`
`A.
`
`The Board’s Conclusion Regarding Factor 2 Does Not
`Misapprehend or Overlook Fact Findings
`The Board’s Decision correctly noted that, while trial in the parallel district
`
`court proceeding was scheduled for May 3, 2021, there was a likelihood trial would
`
`
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`be “rescheduled for August 2, 2021.” Decision, at 9. The Board concluded that,
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`“[u]nder either scenario, … the facts underlying this factor weight toward denying
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`institution” Id. And, in fact, just days prior to the Decision, trial was rescheduled for
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`August 2, 2021. Ex. 2014. Thus, the Board’s conclusion regarding Factor 2—
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`proximity of the court’s trial date to the Board’s projected statutory deadline for a
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`final written decision—does not rest on a clearly erroneous fact finding.
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`Petitioner’s contention otherwise is essentially that Factor 2 should favor
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`institution—regardless of the specific trial date—when there is not complete overlap
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`between the prior art references asserted at the two tribunals. See Request, at 5, 7.
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`This is not correct. Factor 2 “weigh[s] … in favor of exercising authority to deny
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`institution” “[i]f the court’s trial date is earlier than the projected statutory
`
`deadline”—regardless of the complete overlap of prior art references between the
`
`two tribunals. Fintiv, IPR2020-00019, Paper 11, at 9; see, e.g., Amazon.com, Inc. v.
`
`Vocalife LLC, IPR2020-00864, Paper 22, at 10 (P.T.A.B. Oct. 28, 2020) (finding
`
`Factor 2 “strongly favors exercising [] discretion to deny institution” where jury trial
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`has been completed, despite the fact the Petitioner did not present certain prior art
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`references to the jury, and thus “the jury did not consider Grounds 1a–1e of the
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`Petition”). In short, “the overlap between issues raised in the petition and in the
`
`parallel proceeding” is more appropriately the subject of Factor 4—not Factor 2.
`
`Fintiv, IPR2020-00019, Paper 11, at 9.
`
`2
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`
`
`B.
`
`The Board’s Conclusion Regarding Factor 3 Does Not
`Misapprehend or Overlook Fact Findings
`In the Decision, the Board correctly found that Factor 3 “weighs toward
`
`denying institution” given the “substantial” investments made in the parallel
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`proceeding by both the district court and the parties. Decision, at 10. Once again,
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`Petitioner’s criticism of the Board’s findings regarding this Factor rests solely on its
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`contention that those undisputed investments are essentially irrelevant given the
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`purported “lack of overlap” of issues between the two tribunals. Request, at 5, 7. But
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`“the overlap between issues raised in the petition and in the parallel proceeding” is
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`better addressed at Factor 4—not Factor 3. Fintiv, IPR2020-00019, Paper 11, at 6.
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`And, in any event, the Board previously “disagree[d] with Petitioner’s assertions that
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`the investment made … was directed to non-overlapping issues.” Decision, at 10.
`
`C.
`
`The Board’s Conclusion Regarding Factor 4 Does Not Rest on
`Clearly Erroneous Fact Findings
`In the Decision, the Board correctly determined that Factor 4 “weigh[s]
`
`toward denying institution” in view of (i) the “substantial overlap” between
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`Petitioner’s § 101 challenge in the parallel district court proceeding and Ground 1 of
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`the Petition, and (ii) the “overlap” between Petitioner’s prior art challenge in the
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`parallel district court proceeding and Ground 2 of the Petition “because Gilson is
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`relied upon as prior art in both proceedings.” Decision, at 10–11. Critically, in its
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`Request, Petitioner does not dispute the “substantial overlap” with respect to the §
`
`3
`
`
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`101 challenge nor argue that the Board abused its discretion in arriving at that
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`finding. Rather, Petitioner simply argues the Board erred in finding “overlap”
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`between Petitioner’s prior art challenges given that “the primary reference in Ground
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`2” (Master Hearthstone) is “not applied in the district court.” Request, at 3–4.
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`But this is simply a repackaging of Petitioner’s same, earlier argument (see
`
`Paper 8, at 1–2), which the Board already rejected. Decision, at 11. As previously
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`explained, this Factor does not require complete duplication of prior art evidence
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`between the two forums. See Paper 7, at 29–30; Paper 9, at 3–4. And the decisions
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`relied on by Petitioner are distinguishable from the facts here. See Paper 9, at 3–5.
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`Likewise, Petitioner’s restated argument (see Paper 8, at 2–3) that this Factor
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`allegedly favors institution because “only 11 claims remain in the district court
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`proceeding” (Request, at 4) fails. Resolution of Petitioner’s challenge to any claim
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`of the ’177 Patent at the district court will resolve key issues in the Petition given
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`Petitioner’s challenges in each ground here present the same reasons across all
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`independent claims of the ’177 Patent. See Paper 7, at 26–27; Paper 9, at 4–5.
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`D.
`
`The Board’s Conclusion Regarding Factor 6 Is Not Clearly
`Unreasonable, Arbitrary, or Fanciful
`The Board correctly determined that Factor 6 is “neutral” because the merits
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`of the challenges set forth in the instant Petition are neither weak nor strong.
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`Decision, at 12–13. Petitioner contends that this conclusion is “clearly unreasonable,
`
`arbitrary, or fanciful” in light of the Board’s comment that each of Petitioner’s
`4
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`
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`challenges “has merit” and is thus, inherently, adequate for institution. Request, at
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`5–6. Petitioner is incorrect. As set forth in Fintiv, this Factor favors institution only
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`“[i]f the merits of a ground raised in the petition seem particularly strong on the
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`preliminary record.” IPR2020-00019, Paper 11, at 14–15 (emphasis added). And
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`simply having “merit” adequate for institution necessarily does not satisfy this
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`standard. If the challenge did not have “merit” in the first instance there would be
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`no reason for the Board to analyze whether it should exercise its discretion to
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`nonetheless deny institution under § 324(a).
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`E.
`
`The Board Did Not Abuse Its Discretion In Denying Institution
`Under § 324(a) In Accordance with Fintiv
`The Board did not abuse its discretion in reaching its conclusion under a
`
`holistic analysis of all of the Fintiv Factors. Petitioner’s argument otherwise suggests
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`that the Board should have found “Factors 4 and 6 to be definitive … regardless of
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`its findings regarding other factors.” Request, at 6. Such a proposition is directly
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`contrary to the Board’s precedential decision in Fintiv, as noted above. And none of
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`the decisions cited by Petitioner support such a divergence from the required holistic
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`analysis of all of the Fintiv Factors. See Request, at 6. Those decisions are also
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`distinguishable from the facts here. See Paper 9, at 3, 5. Petitioner’s challenge to the
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`entire “NHK-Fintiv framework” as “procedurally invalid” (Request, at 7–9) also
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`fails, as previously found by this Board. See, e.g., Supercell Oy v. GREE, Inc.,
`
`PGR2020-00034, Paper 17, at 11–12 (P.T.A.B. Nov. 2, 2020).
`5
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`
`
`Dated: June 10, 2021
`
`
`
`By: /John C. Alemanni/
`
`John C. Alemanni
`Reg. No. 47,384
`Lead Counsel for Patent Owner
`
`6
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`
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`CERTIFICATE OF SERVICE
`
`The undersigned hereby certifies that a copy of the foregoing Patent Owner’s
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`Response to Petitioner’s Request for Rehearing Under 37 C.F.R. §42.71 has been
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`served electronically via email upon counsel for Petitioner at bhoffman-
`
`PTAB@fenwick.com.
`
`Dated: June 10, 2021
`
`By: /John C. Alemanni/
`John C. Alemanni
`Reg. No. 47,384
`Lead Counsel for Patent Owner
`
`7
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`