Filed on Behalf Of: Facebook, Inc. Entered: February 12, 2021
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Filed on behalf of: Facebook, Inc. Entered: February 12, 2021 UNITED STATES PATENT AND TRADEMARK OFFICE _______________________ BEFORE THE PATENT TRIAL AND APPEAL BOARD _______________________ FACEBOOK, INC., Petitioner, v. ONSTREAM MEDIA CORPORATION, Patent Owner. _______________________ Case IPR2020-01525 Patent 9,467,728 B2 ______________________ PETITIONER’S REPLY TO THE PATENT OWNER PRELIMINARY RESPONSE IPR2020-01525 (USP 9,467,728) Petitioner’s Reply to POPR TABLE OF AUTHORITIES Page(s) CASES Abbott Vascular, Inc. v. Flexstent, LLC, IPR2019-00882, Paper 11 (Oct. 7, 2019) ......................................................... 2, 7 In re Adobe, 823 F. App’x 929 (Fed. Cir. 2020) ....................................................................... 3 Apple Inc. v. Fintiv, Inc., IPR2020-00019, Paper 11 (Mar. 20, 2020) .................................................. 1, 4, 5 Apple Inc. v. Maxell, Ltd., IPR2020-00204, Paper 11 (June 19, 2020) ........................................................... 6 Apple Inc. v. Parus Holdings, Inc., IPR2020-00686, Paper 9 (Sept. 23, 2020) ........................................................ 4, 6 Apple Inc. v. Seven Networks, LLC, IPR2020-00506, Paper 11 (Sept. 1, 2020) ........................................................ 2, 3 Arthrex, Inc. v. Smith & Nephew, Inc., 941 F.3d 1320 (Fed. Cir. 2019), cert. granted sub nom. United States v. Arthrex, Inc., No. 19-1434, 2020 WL 6037206 (Oct. 13, 2020). .................................................................................................................... 8 Dish Network L.L.C. v. Broadband iTV, Inc., IPR2020-01267, Paper 15 (Jan. 21, 2021) ........................................................ 2, 4 GlobalFoundries Inc. v. UNM Rainforest Innovations, IPR2020-00984, Paper 11 (Dec. 9, 2020)............................................................. 8 Google LLC v. Parus Holdings, Inc., IPR2020-00846, Paper 9 (Oct. 21, 2020) ............................................................. 3 HP Inc. v. Slingshot Printing LLC, IPR2020-01086, Paper 12 (Jan. 14, 2021) ............................................................ 7 HP Inc. v. Slingshot Printing LLC, IPR2020-01085, Paper 12 (Jan. 14, 2021) ............................................................ 8 i IPR2020-01525 (USP 9,467,728) Petitioner’s Reply to POPR Intel Corp. v. ParkerVision, Inc., IPR2020-01302, Paper 9 (Jan. 28, 2021) .............................................................. 8 Juniper Networks, Inc. v. Huawei Digital Techs. (Cheng Du) Co., IPR2020-01130, Paper 13 (Jan. 22, 2021) ............................................................ 6 Marvell Semiconductor, Inc. v. Uniloc 2017 LLC, IPR2019-01349, Paper 24 (Feb. 1, 2021) ............................................................. 8 Nvidia Corp. v. Invensas Corp., IPR2020-00602, Paper 11 (Sept. 3, 2020) ............................................................ 3 Peag LLC v. Varta Microbattery GmbH, IPR2020-01212, Paper 8 (Jan. 6, 2021) ................................................................ 2 Resideo Techs., Inc. v. Ubiquitous Connectivity, LP, IPR2019-01335, Paper 38 (Jan. 26, 2021) ............................................................ 8 Sand Revolution II, LLC v. Continental Intermodal Grp. – Trucking LLC, IPR2019-01393, Paper 24 (June 16, 2020) ................................................... 2, 4, 6 ii IPR2020-01525 (USP 9,467,728) Petitioner’s Reply to POPR Exhibit List Ex. No. Description 1001 U.S. Patent No. 9,467,728 (the “’728 patent”) 1002 File History of U.S. Patent No. 9,467,728 1003 Declaration of Dr. Henry Houh 1004 Curriculum Vitae of Dr. Henry Houh 1005 Hurwicz, et al., Special Edition Using Macromedia Flash MX (Candace Hall et al. eds., 2003) (“Hurwicz”) 1006 U.S. Patent App. Pub. No. 2004/0225728 (“Huggins”) 1007 Towes, Kevin, Macromedia® Flash Communication Server MX (2002) (“Towes”) 1008 [Reserved] 1009 U.S. Patent App. Pub. No. 2002/0056123 (“Liwerant”) 1010 [Reserved] 1011 Crouch, Cameron, RealPlayer v. Windows Media: A Streaming Shootout, CNN, Jan. 28, 2000, https://www.cnn.com/2000/TECH/computing/01/28/ stream.shootout.idg/index.html 1012 Declaration of Dr. Ingrid Hsieh-Yee 1013 Curriculum Vitae of Dr. Ingrid Hsieh-Yee 1014 Strauss, Neil, Rolling Stones Live on Internet: Both a Big Deal and a Little Deal, New York Times, Nov. 22, 1994, https://www.nytimes.com/1994/11/22/arts/rolling-stones-live-on- internet-both-a-big-deal-and-a-little-deal.html 1015 Chambers, Mike, Macromedia Flash MX Security, Macromedia White Paper, Mar. 2002 1016 [Reserved] 1017 [Reserved] 1018 [Reserved] iii IPR2020-01525 (USP 9,467,728) Petitioner’s Reply to POPR Ex. No. Description 1019 [Reserved] 1020 PCMag Encyclopedia definition of browser plug-in 1021 PCMag Encyclopedia definition of HREF 1022 GeeksforGeeks definition of src attribute 1023 [Reserved] 1024 HTMLQuick definition of param element 1025 [Reserved] 1026 Letter from counsel for Petitioner to counsel for Patent Owner regarding co-pending litigation (Feb. 12, 2021) 1027 [Proposed] Agreed Scheduling Order, Onstream Media Corp. v. Facebook, Inc., No. 1:20-cv-00214-ADA (W.D. Tex. May 13, 2020), ECF No. 28 1028 [Proposed] Amended Agreed Scheduling Order, Onstream Media Corp. v. Facebook, Inc., No. 1:20-cv-00214-ADA (W.D. Tex. June 30, 2020), ECF No. 35 1029 [Proposed] Second Amended Agreed Scheduling Order, Onstream Media Corp. v. Facebook, Inc., No. 1:20-cv-00214-ADA (W.D. Tex. Dec. 18, 2020), ECF No. 53 1030 Declaration of Lisa K. Nguyen in Support of Petitioner’s Reply to the Patent Owner Preliminary Response 1031 Thirteenth Supplemental Order Regarding Court Operations Under the Exigent Circumstances Created by the COVID-19 Pandemic (W.D. Tex. Feb. 2, 2021), https://www.txwd.uscourts.gov/ coronavirus-covid-19-guidance/ 1032 Lex Machina report of civil cases pending before Judge Alan D. Albright 1033 U.S. District Court for the Western District of Texas report of pending criminal cases in the Waco Division 1034 Letter from counsel for Monolithic Power Systems, Inc. to Hon. Andrei Iancu (Nov. 17, 2020), https://beta.regulations.gov/ comment/PTO-C-2020-0055-0381 iv IPR2020-01525 (USP 9,467,728) Petitioner’s Reply to POPR Ex. No. Description 1035 Email thread between counsel for Petitioner and counsel for Patent Owner regarding co-pending litigation (May 15 – July 17, 2020) v IPR2020-01525 (USP 9,467,728) Petitioner’s Reply to POPR Patent Owner (“PO”) cannot defeat this petition on the merits, nor does PO even attempt to. The only mention of merits found anywhere in the POPR is a lone, conclusory statement in a footnote. POPR at 16 n.7. Rather than providing any substantive arguments (because it has none), PO relies on Fintiv and the fact that the trial in Onstream Media Corporation v. Facebook Inc., No. 1:20-cv-00214-ADA (W.D. Tex.) (the “Related Litigation”) is tentatively scheduled for January 10, 2022, just three months before the final written decision. But this tentative trial date is in no way dispositive. The Related Litigation is only weeks into discovery and major deadlines have already moved back by months. This is compounded by the fact that at least nineteen separate trials are currently scheduled to begin before the same judge in January 2022, with at least five other trials scheduled on the same date as the Related Litigation. Regardless, in the unlikely event that trial proceeds before the final written decision issues, there would be no wasted resources because Petitioner has stipulated that if instituted, Petitioner will not pursue the same grounds in the Related Litigation. Thus, efficiency and fairness confirm that the Board should reach the merits of the instant petition, particularly given its strength which PO does not substantively dispute. I. Institution is Appropriate under § 314(a) and Fintiv A “holistic” evaluation of the Fintiv factors confirms that institution in this proceeding will further the Board’s considerations of “efficiency, fairness, and the merits.” Apple Inc. v. Fintiv, Inc., IPR2020-00019, Paper 11 at 6 (Mar. 20, 2020) (precedential) (“Fintiv”). Here, Fintiv factors 3, 4, and 6 weigh in favor of reaching 1 IPR2020-01525 (USP 9,467,728) Petitioner’s Reply to POPR the merits of the petition, while only factor 2 (proximity to trial) at most weighs slightly against. Viewed in balance, the tentative trial date cannot be the sole reason for denial. See Abbott Vascular, Inc. v. Flexstent, LLC, IPR2019-00882, Paper 11 at 31 (Oct. 7, 2019) (“Abbott”) (rejecting “a rule that imminent trial dates will require denial”). Factor 1 (stay) is neutral. A stay motion has not been filed in the Related Litigation, and the district court has not stated whether it would consider a stay. The Board has repeatedly stated that it will not speculate as to the outcome of any stay motion under such circumstances. See, e.g., Dish Network L.L.C. v. Broadband iTV, Inc., IPR2020-01267, Paper 15 at 12–14 (Jan. 21, 2021) (“Dish”); Sand Revolution II, LLC v. Continental Intermodal Grp. – Trucking LLC, IPR2019-01393, Paper 24 at 7 (June 16, 2020) (“Sand Revolution”). Factor 2 (proximity to trial) at most weighs only slightly against institution. As a threshold matter, the Board has repeatedly instituted where the gap between the trial date and the decision deadline has been far greater. See, e.g., Apple Inc. v. Seven Networks, LLC, IPR2020-00506, Paper 11 at 9 (Sept. 1, 2020) (“Seven”) (granting institution despite nine-month gap); Peag LLC v. Varta Microbattery GmbH, IPR2020-01212, Paper 8 at 22–23