IN RE GOOGLE TECHNOLOGY HOLDINGS LLC
Oral Argument — 10/06/2020 · Case 19-1828 · 30:17
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Clerk
The United States Court of Appeals for the Federal Circuit is now open and in session.
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God save the United States and this honorable court.
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Judge Taranto
Your argument first in 19-1828 in re Google Technology Holdings.
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Ms. Cayali.
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Appellant Attorney (Kathryn Schleckser Kayali)
Good morning, Your Honors, and may it please the court.
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My name is Catherine Cayali.
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I'm here on behalf of Google Technology Holdings to present what is a quintessential claim construction dispute.
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Google defined a claim term in its specification.
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Judge Taranto
Ms. Cayali, this is just Toronto.
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Can I ask a kind of preliminary question?
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Assume just for purposes of this question that we were to affirm here, would Google be able to file a new claim
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or claims containing the language you argue for as a matter of claim construction here either
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in this application or in the application?
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Appellant Attorney (Kathryn Schleckser Kayali)
Your Honor, no current continuations are pending in this chain.
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This is the last application in this chain.
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Whether or not we could file a continuation upon affirmance and remand, that's something I would have
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to defer to prosecution counsel for, but I believe it's possible
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that a continuation could be filed after the fact.
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Judge Taranto
This application remains pending, is that right?
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Appellant Attorney (Kathryn Schleckser Kayali)
This application upon, again, I would defer to prosecution counsel, but this application is pending.
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It's the last application in the chain.
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It's not a continuation.
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If this court were to affirm and remand, my understanding is
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that a continuation could be filed before the mandate.
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Judge Taranto
Okay. Let me ask you then, turning to the merits, although not quite the merits
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of the claim construction itself, is your understanding that the, let's call it,
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the principle of LeBron and Williams says only that court may side an issue
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that was passed upon even if not quite argued.
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It doesn't say.
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It doesn't say that we are obliged to.
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And if that's your understanding, why is this a case which we should?
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Appellant Attorney (Kathryn Schleckser Kayali)
Your Honor, I would respectfully push back against that understanding.
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I think that while Williams is phrased in the permissive sense in the Supreme Court's certiorari,
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so cases like this court's in Conoco make clear that when the decision below rests
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on a legal principle, when a legal issue is passed upon and forms the foundation
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of the lower tribunal's decision, that decision must be reviewed on appeal
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because it's the foundation of the opinion and a pure legal issue.
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So I think the context, even though Williams phrases it in the permissive, this court has applied it
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and many circuit courts have applied it to require passing on issues that,
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on legal issues that form the basis of the opinion below.
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So turning then to the merits of the claim construction argument, if I could,
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I think it's clear from the, from Google's specification in paragraph 67
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that Google has clearly defined the term cost.
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To refer to a bottleneck link.
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Judge Chen
There is.
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Ms. Caioli, Ms. Caioli, this is Judge Chen.
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I was, the term in the claim is content source cost and I was wondering is, is that term,
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that phrase used anywhere in the specification in the written description other
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than in the claim, content source cost?
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Appellant Attorney (Kathryn Schleckser Kayali)
No, Your Honor, I don't believe it is.
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But I think it's unambiguous in the context of the claim that that content source cost refers
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to the cost of the claim.
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Again, as the claim language continues of retrieving the content
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from the second content source or a third content source.
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That problem is unambiguously addressed in the specification under the pure choice rubric
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of how to determine from where to source content.
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Judge Chen
Are you talking about, are you talking about the bottleneck link discussion?
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Yes, Your Honor.
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Just curious, I believe you have some patents that have issued already
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off of this written description, is that right?
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Appellant Attorney (Kathryn Schleckser Kayali)
That's right, yes.
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Judge Chen
Do you have any claims in those patents that use the term bottleneck link?
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Appellant Attorney (Kathryn Schleckser Kayali)
We do not, Your Honor.
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No, no use of the term bottleneck in the claims.
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There are claims that refer to links, excuse me, cost based on traffic which is predicted
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to occur over a most utilized link.
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But I would suggest that most utilized is not synonymous with bottleneck.
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Judge Chen
And just curious while we're at this housekeeping point, are there any claims
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that use the term fetch cost?
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Appellant Attorney (Kathryn Schleckser Kayali)
Your Honor, that's the answer I don't know off the top of my head.
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My recollection is that they do not.
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But I would need to confirm that.
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Judge Chen
And finally, I'm sorry, just out of curiosity,
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why is this case captioned in ray Google instead of in ray name of inventors?
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Appellant Attorney (Kathryn Schleckser Kayali)
Sure, that's a new feature of the AIA that allows corporations actually to be patent applicants.
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And so, in this instance, the applicant is Google technology holding.
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Judge Chen
Ah, thank you.
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Okay, please continue.
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Appellant Attorney (Kathryn Schleckser Kayali)
Sure, Your Honor.
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So, I'm turning again to paragraph 67, which refers to the definition of cost
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as that term is used in the claims here.
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Paragraph 67 explains that the cost of the path is defined by the bottleneck link in that path,
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which is the link that takes the longest to transfer item I. The bottleneck link
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in the path obviously refers to the path connecting the source of the content to the user.
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So, it's unambiguous in paragraph 67.
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So, it's unambiguous in paragraph 67, which is addressed under the heading of pure choice,
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that when choosing among different sources, you identify the source,
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the specification calls in paragraph 68 the largest bottleneck I would tend it
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to mean is the least problematic part specification direct one to choose.
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How to source content is by identifying the path, the source with the path to the user
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that has the least problematic bottleneck.
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Respectfully Your Honor, that is in direct conflict with instruction
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that the bottleneck link to the source contains.
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board offered under the guise of broader treatable interpretation. The board offered a construction
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that, in essence, cost encompasses everything taught by the prior art. Cost encompasses
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everything taught by Costa, which was one reference assertive. Cost encompasses everything
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taught by Scholl, the second reference that the examiner relied upon. And that means that cost
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includes everything up to and including monetary value, a concept completely divorced from the
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manner in which the term cost is used here. I think it's clear that when applying the definition
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of cost as used in paragraph 67, the board has not identified, and neither has the examiner,
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any reference that discloses that cost. Because the lexicographical definition of the term has
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to control, the board's construction is not only impermissible, but results in a legally erroneous
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Judge Taranto
obvious misconclusion. Can I just say, Ms. Kelly, you used the phrase problematic, least problematic.
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Is that the same?
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Is that the same as that takes the longest to transfer?
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Appellant Attorney (Kathryn Schleckser Kayali)
Yes, Your Honor. I think in the context of the specifications, for instance, in paragraph 68,
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that describes the largest bottleneck link, I think largest is what is intended there is takes the
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least time is the largest bottleneck link. The smallest bottleneck link is the one that takes
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the longest to transfer the item. Hopefully that distinction makes sense. I refer to least
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problematic, so it's just to not create any ambiguity between whether a bottleneck link is the
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Judge Taranto
largest bottleneck link or the largest bottleneck link is the largest bottleneck link.
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I would not know, Your Honor.
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Appellant Attorney (Kathryn Schleckser Kayali)
Okay.
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I'm referring simply to the determination of which link is the bottleneck, and therefore,
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which link takes the longest to transfer the item.
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Judge Chen
Ms. Kelly, this is Judge Chen again. I noticed that in the claim, when it refers to content
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source cost, it also says based on network impact, quote unquote. And I was wondering if you could
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elaborate on that, because I was trying to think about what does that mean in relation to your
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preferred definition. Your preferred definition seems to be thinking about cost in the perspective
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of speed of delivery of the content. And based on network impact could be understood as, well,
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looking from the perspective of the network itself, not the speed of the delivery of the content,
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but the harm or
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harm on the network. And so I was wondering how does this term, based on network impact,
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help your cause in forcing us to think about content source cost is really from the perspective
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of the speed of the delivery of the content to the customer.
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Appellant Attorney (Kathryn Schleckser Kayali)
Yes, Your Honor. So I would suggest especially that Google's definition is not one that's limited
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to the speed of the transfer of the content, because it may be that the fastest path is not the
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one with the smallest or the least traffic.
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Yes.
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But it is the one that has the most problematic bottleneck link. For instance, it might make sense to
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travel a longer distance and longer in time as well if you avoid hitting a bottleneck that not only
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could delay your transfer, but might impede the transfer of other content as well. The same idea that
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if you pile more cars onto 66, not only are you slowing down your commute, but you're slowing down
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everyone else's. And of course, the network
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Judge Taranto
I'm sorry, but how do you get that out of the middle sentence of paragraph 67, which seems to focus
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just on the longest to transfer a particular link?
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Appellant Attorney (Kathryn Schleckser Kayali)
Oh, Your Honor, I see I'm in my rebuttal time. I'm happy to answer your question with the panel's permission.
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Yes, please.
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So the difference here is that there may be multiple links in a path. So while an individual link might be
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slowest in a path, it might be faster than the slowest link in a different path. And so you choose the path
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that has the least slow, slowest link, the fastest slowest link.
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And by doing so, that direction, that's the direction to choose the one that has the largest bottleneck link.
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And by doing so, that you're avoiding complicating or you're avoiding exacerbating, excuse me, existing
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bottlenecks in the system that might already be congested with link traffic.
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Judge Taranto
Do you want to say a word about network penalty? And then we'll keep your rebuttal time.
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Appellant Attorney (Kathryn Schleckser Kayali)
Thank you, Your Honor. Yes, if we turn to network penalty, I think the definition and the specification is crystal clear.
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Okay.
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That it begins definition, colon, network penalty. And it provides a formula that's based on much of Google's ability
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to compute, use.
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Ms. Kiley?
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Yes.
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Judge Chen
Ms. Kiley, I'm sorry. This is Judge Chen again. I know you're running out of time here. Could you just point me to a
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sentence in your board brief that gives me a clue and a signal that the board should have recognized it was looking
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at a preferred penalty?
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Yes.
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So, if the construction of the term network penalty is advanced by Google, what sentence would that be in your board brief?
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Appellant Attorney (Kathryn Schleckser Kayali)
Your Honor, I can't point you to where we disclose this construction. I concede that. But I think that this construction is
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certainly consistent with the manner in which we interpreted the claim below, which is to say that simply understanding cost and
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sorry, simply understanding that the size of content matters, that the distance content needs to travel matters is not sufficient to
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reach the formula that's disclosed in paragraph 80.
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Judge Taranto
And this is Judge Schrander. Let me just ask you one question on the merits of this construction. If we're doing a BRI interpretation,
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the question perhaps is, would a relevant skilled artisan understand that the language of the claim, which refers only to two of
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three factors in the specification formula.
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Yes.
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So, if the specification formula is not redefined by that specification formula, is the choice is, do I read that formula as
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essentially an embodiment formula or as a redefinition?
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And because there's a disparity between the claim language, quite noticeable disparity of leaving out the fetch cost, one reasonable
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by a relevant skilled artisan would.
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Appellant Attorney (Kathryn Schleckser Kayali)
Your Honor, I understand the point.
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Yes.
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So, the claim language you're pointing to, and we would submit that this definition is clear on its face that it's not limited to a single
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embodiment, and that in fact, while that, excuse me, the claim language is entirely consistent with paragraph 80, although it does not
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mention the fetch cost, the definition of network penalty imports the use of fetch cost into the claim by virtue of the defined claim.
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Judge Taranto
I think we'll hear from the other side, and you'll have your full five minutes for rebuttal.
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Thank you.
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Judge Stoll
Thank you, Your Honor.
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Appellee Attorney (Daniel Kazhdan)
May it please the Court.
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I just, I want to pick up where Your Honor just left off in the call with my friend.
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And the question about network impact, I want to point out that the, it's not just, Judge Chen asked about whether any of the claims mentioned fetch costs.
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In Claim 10, I think it's actually very illustrative here, if you look on Appendix 18, and so, or over onto 19.
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And it says, the network penalty is based on size, number of requests, and fetch costs.
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So, some of the claims actually expressly talk about network penalty in the context of fetch costs.
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But Claim 1 does not.
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It only mentions two out of the three, to Judge Taranto's point.
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So, I think that this sort of gets at the point, which is that the claims seem to be redefining it, and different claims are using the term differently.
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Which, the contrast between the language of Claim 10 and Claim 10.
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And Claim 1.
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And there are other claims that also expressly talk about network penalty in terms of fetch costs, like Claim 18.
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So, I think that it does, there's at least a question about what this means.
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And so, under BRI, I think the Board rightly was, if the Board had been asked to pursue it, it would have been right to say that there's a potential redefinition.
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But I think this whole case, and just sort of now back to the beginning, is, this is a case where Google is arguing for lexicography.
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And this Court has repeatedly talked about the fact that lexicography is an exception.
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So, if you want to tell the Board that you, if you think a word has a special meaning, is that you've given it a meaning different than its normal meaning,
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you should have to tell the Board that that's what you're arguing.
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And if you don't, then you're tacitly agreeing.
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And I think that, you know, the notion of the tacit agreement, I think that was actually something that Google said in describing NUVO.
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But I think that's an accurate description of where the Court should be going for addressing issues.
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Issues that weren't raised by the parties but are decided by the lower tribunal and where it shouldn't.
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So, you know, in Clariat, the Sixth Circuit case, the Court says that, you know, it's unfair, if you didn't even know something would be an issue,
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and then the district court or trial court decided against you, it's unfair if you don't get a chance to rebut that.
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So, for example, if the fact had been reversed, if the Board for the first time had said, we're going to apply lexicography,
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where nobody mentioned lexicography before,
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it'd be fair for the appellant to say, look, we didn't know that anybody thought that this term has a special meaning.
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But that's the opposite of our fact.
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Here, the Board just did what the default rule is, and Google wants the exception.
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If it wants an exception, it has to say it.
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And if it doesn't, it's tacitly accepting that the word will have the normal meaning.
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Judge Taranto
Mr. Kasdan, this is Judge Taranto.
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Do you have an answer to the first question I asked Ms. Kaye?
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I'm sorry, Ali, about whether new claims containing express language with the now-urged construction could still be filed.
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Appellee Attorney (Daniel Kazhdan)
So I think they would run – so this is – the MPEP notes, and it's not –
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that there's conflicting case law a little bit on the scope of res judicata from one prosecution to another.
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I think the better read is that if they have the same claims, there would be res judicata,
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although I think there is a Judge Rich opinion where he says if you change the record,
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you can have the same claims and have new arguments.
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But I think more recent –
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No, no, no, I'm sorry.
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Judge Taranto
I don't think I've asked my question.
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Let's take the proposed claim construction, a bottleneck link construction.
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Let's imagine a claim with those words in it.
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And similarly for a network penalty, words that paragraph with the formula.
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So now we have new claims.
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New language in claims.
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Could Google file such claims either in this application or in a continuation?
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Appellee Attorney (Daniel Kazhdan)
I apologize, Your Honor.
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You're right.
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I did misunderstand the question.
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Yes.
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Until the mandate issues, Google can file a continuation of this application and say we're going to amend the claims
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and we're going to just put exactly the words.
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So a lot – as you know from the briefs, one of the questions is whether content source cost means cost of the path, let's say.
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We disagree about that.
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If they put in cost of the path, they've gotten past that issue, right?
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And they can still file a continuation.
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Now, if they don't have a live continuation, and my friend said that they don't, then once the mandate issues,
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the MPP says that we cannot – the USPTO can no longer continue prosecution.
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But until then, they can file a continuation.
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So they could do that today, file the continuation, preserve the issue, and then file the claims where there's no claim construction issue
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because the claims say expressly what they mean.
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Judge Taranto
I guess one reason I've asked the question is that the passed upon rule is a rule of, you know,
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quite general potential of a scope not particularly tied to this context, patent application context.
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And I wonder if whether it should be applied is – might be affected by the availability of a curative,
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curative option on the part of the litigant, one that also happens to serve the important patent policy
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of having content as much as possible on the face of the claim.
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Appellee Attorney (Daniel Kazhdan)
Yeah.
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So I think that that makes sense to me.
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And this is sort of why BRI exists, is the policy of this Court is long, I suppose, which is just make it clearer.
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Everybody will know, and that life will be easier for everyone involved.
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And I think that that's a good reason to say that.
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We're not – this isn't an estoppel that's going to bar you from doing anything that you want
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the way it would in a district court where you have to pay money damages.
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Just draft claims that don't have this issue, and then we can move on,
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and the whole claim construction issue can go away, and we can talk about the merits.
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I think that's right, Your Honor.
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Judge Chen
Mr. Cosden, just to be clear, I thought I had heard you earlier say that if the facts were in reverse,
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then you would think it would be appropriate for us to consider the claim construction issue.
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That is to say, if the Board surprised everybody by engaging in some kind of lexicography analysis
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that had been unexpected, then, therefore, the appellant in that instance would say,
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no, I want the broadest reasonable interpretation, and you're now surprising all of us
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by incorporating the specification into the claim.
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Appellee Attorney (Daniel Kazhdan)
Yes.
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So two points.
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One, I hadn't thought about Judge Sauron.
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I hadn't thought about this point at the time.
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But the other one is that sometimes if you want the plain language of the claim,
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it may be hard to write your claims in the way, like the words you may want to use
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based on your specification may be the words you've chosen,
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and if there's no lexicography, then it seems unfair that you never have a chance to say
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there is no lexicography.
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So in that sense, I think if the facts were reversed,
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I'd have more sympathy for you.
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I would have more sympathy for an appellant to say that I've been surprised,
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and I don't feel like I should have to use some clunky term,
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which then might run into description problems because people will say,
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well, that's not in the spec or something.
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So if they've chosen the best terms.
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Judge Stoll
Hi.
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This is Judge Stoll.
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I just had one quick question on your answer there,
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which is simply that do you think that in this hypothetical that you posed
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where the Board has a new claim construction that it never announced before,
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would that be something that would require reopening prosecution?
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Would that then become kind of a new ground at that point that was provided by the Board
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for the first time?
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Appellee Attorney (Daniel Kazhdan)
Well, so this Court has some case law.
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I mean, it's very hard to tell.
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It depends a little bit on how surprising it is.
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So this Court has said sometimes there could be a due process problem,
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although this Court has said that the ability to petition for rehearing might be enough to get past that.
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But it will depend, I think,
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on how different the construction the Board does is from the construction that you have.
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And so it may be fact-specific about whether the new construction requires reopening.
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And then under Chenery, I think this Court also can say, look,
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clearly this construction is right or isn't right,
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and clearly there's no substantial evidence could only support one conclusion.
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So, you know, I feel like it will depend on the specifics of the facts.
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And so maybe I opened up more of a can of worms than I intended to with the hypothetical.
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But I think it would depend on the specific case on how far,
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how surprising is the Board's decision, how far afield is this.
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Judge Stoll
On the waiver issue, do you see any difference here given that this was an ex parte case
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and the examiner had presented a prima facie case of unpatentability?
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Do you think that it makes a difference in an ex parte case that somehow there would be some incentive for a party
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to provide its claim construction?
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Do you think that there would be some incentive for a party to provide its claim construction positions
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in distinguishing the prior art as soon as possible, either before the examiner or the Board?
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Appellee Attorney (Daniel Kazhdan)
Yes.
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I think even in an inter-party, this is true, but it's really unfair to the examiner to suddenly,
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I mean, it's really unfair to the whole USPTO, right?
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The Board also didn't have any briefing on this issue.
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For Google to come in and say this whole case should turn on a claim construction that nobody mentioned,
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and, you know, and this Court has said in ex parte cases,
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for example, secondary considerations, the burden of production, I think, has shifted to the party.
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So, like, we do account for the fact that the examiners have limited time,
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and we sort of expect the applicants to bring forth their arguments more clearly than in inter-party cases.
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I think that's correct, Your Honor.
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I'm happy to answer other questions.
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I do feel like this case really should be decided on waiver.
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I think that the multi-step claim construction argument of content source cost equals cost of evidence,
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and cost of the path equals bottleneck link is difficult, both because it's not clear.
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Both steps are difficult because, as we point out in our brief,
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the end of the specification suggests that even cost of the path may have multiple definitions.
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And then the same thing goes for the network penalty, where you have a sort of,
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you have a waived argument, and there are solid claim construction questions about what you do about balancing the language,
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which are the claims, but claim two, which doesn't mention fetch cost and does versus the definition that seems to.
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And so, given that, this court really, Google needed to present that independent instance to the board.
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I'm happy to answer any other questions, but if not, I will cede back my time.
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Judge Taranto
Hearing no other questions, thank you.
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And, Ms. Keali, you have five minutes for your rebuttal.
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Appellant Attorney (Kathryn Schleckser Kayali)
Thank you, Your Honor.
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I'd like to return to the waiver issue briefly to say that this court in Conoco explicitly held
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that where a district court had construed a term that neither party had sought construction of below,
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this court must review that construction de novo.
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I agree that that's different language than that is espoused in Williams, but this language of Conoco is not permissive.
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Secondly, I don't think there's any support for my friend on the other side's suggestion that if the situation were reversed,
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if the board had come up with a lexicographical definition in the first instance, that the situation should turn out differently.
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Candidly, Google was surprised.
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Judge Chen
Ms. Keali, could you explain how Google would have been surprised by this conception of content source costs articulated by the board?
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I mean, I don't see anything here that suggests that what the board said was a harsh departure from what could have been
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or necessarily was understood by the examiner and Google's counsel during the prosecution.
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Appellant Attorney (Kathryn Schleckser Kayali)
Yes, Your Honor.
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We have explicitly defined the claim.
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We have determined the specification.
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And when the examiner rejected our claims on basis of prior art, for example, the shoal reference,
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which relates to proximity-based determination, we repeatedly said, no, shoal is proximity.
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Shoal is proximity.
27:33
This is not content source costs.
27:35
And I think in that back and forth with the examiner,
27:37
our understanding was that we were applying the definition of content source costs that we had espoused in the specification.
27:43
So to see a different definition of content source costs, one that's untethered from the language of the specification,
27:48
that's untethered from the context of the application,
27:49
that's untethered from the context of the claim,
27:50
that goes so far as to include monetary value, was a surprise.
27:53
One in the conversations with the examiner or the discussion of the prior art had a telling that in the board's discussion,
28:04
not only did it offer a construction of cost,
28:06
what it said right before it offered that explicit construction was,
28:10
we construe cost to everything that's end shoal disclosed.
28:18
The claim construction effort that really was intended to wipe away all prior art
28:24
and fold that into a decision that the term cost was broad enough to include whatever it was.
28:29
So that wasn't, I don't think there's any Federal Circuit precedent for the idea that if the situation were reversed,
28:38
that the situation should turn out different.
28:43
Moreover, while we, especially while we may be able to file a claim before the mandate issue,
28:48
we are here on the fact that they're presented,
28:51
that the terms as we have used currently in court,
28:59
it's quite clear in context what cost and discuss claim terms.
29:09
I don't think there's any distinction, this case and the Conoco case,
29:16
and I would respectfully urge the court to consider that.
29:19
Consider its claim construction.
29:20
Sorry, to review the lower tribunal's claim construction under the Conoco rule.
29:26
With that, I would say only that Google respectfully requests vacator of the board's
29:31
affirmance of the examiner's final rejection,
29:34
which would send the application back for further prosecution.
29:43
Judge Chen
This is Judge Chen.
29:44
I just have a quick observation.
29:46
Ms. Cagliari, I thought your briefs were expertly done here,
29:49
and I only wish your client had given,
29:53
your prosecution counsel as much time to write the board briefs
29:58
as you clearly put into these nicely done briefs.
30:03
Thanks.
30:04
Appellant Attorney (Kathryn Schleckser Kayali)
Well, Judge Chen, I thank you, and I appreciate the compliment.
30:12
Judge Taranto
Thank you to both counsel, and the case is submitted.