The outcome of Microsoft vs. IPA
Microsoft and IPA both appeal. As to Microsoft’s appeals: We affirm the Board’s determination of no proven
unpatentability of claims 29–47 of the ’115 patent and
claims 50–51 and 53–55 of the ’560 patent; but we reverse
certain Board findings regarding claims 8–10, 63, and 86–
89 of the ’115 patent and claims 10–11 and 28 of the ’560
patent, and we remand for any further proceedings that
may be necessary and appropriate to address those claims.
As to IPA’s appeals (including cross-appeals): We affirm all
of the Board’s determinations challenged here by IPA.
The legal standards:
Microsoft presents five arguments on appeal. We review the Board’s legal conclusions (including claim constructions based solely on intrinsic evidence) de novo and
its factual findings (including those concerning the prior
art’s teachings and the motivation to combine) for substantial-evidence support. Hamilton Beach Brands, Inc. v.
f’real Foods, LLC, 908 F.3d 1328, 1339 (Fed. Cir. 2018);
Redline Detection, LLC v. Star Envirotech, Inc., 811 F.3d
435, 449 (Fed. Cir. 2015). Substantial evidence exists if “‘a
reasonable fact finder could have arrived at the agency’s
decision’” in light of the record as a whole. Intelligent BioSystems, Inc. v. Illumina Cambridge Ltd., 821 F.3d 1359,
1366 (Fed. Cir. 2016) (quoting In re Gartside, 203 F.3d
1305, 1312 (Fed. Cir. 2000)). We review the Board’s judgments concerning what arguments have been adequately
presented in a petition and other pleadings for abuse of discretion. See Ericsson Inc. v. Intellectual Ventures I LLC,
901 F.3d 1374, 1379 (Fed. Cir. 2018); Altaire Pharms., Inc.
v. Paragon Bioteck, Inc., 889 F.3d 1274, 1284 (Fed. Cir.
2018), remand order modified by stipulation, 738 F. App’x
1017 (Fed. Cir. 2018); Intelligent Bio-Systems, 821 F.3d at
1367; see also MModal LLC v. Nuance Commc’ns, Inc., 846
F. App’x 900, 906 (Fed. Cir. 2021). “An abuse of discretion
is found if the decision: (1) is clearly unreasonable, arbitrary, or fanciful; (2) is based on an erroneous conclusion of
law; (3) rests on clearly erroneous fact finding; or (4) involves a record that contains no evidence on which the
Board could rationally base its decision.” Intelligent BioSystems, 821 F.3d at 1367 (citation omitted).
First argument of Microsoft
Microsoft’s first argument on appeal is that, for claims
8–10 and 63 of the ’115 patent and for claim 28 of the ’560
patent,
the Board erred in finding that Microsoft had not
proven how or why Kiss and FIPA97 would have been combined by a relevant artisan. Microsoft Opening Br. 49–57.
Claims 8 and 9 of the ’115 patent, which are representative
for purposes of this issue, read:
8. A computer-implemented method as recited
in claim 5 wherein the agent registry data structure includes at least one trigger declaration for
one active agent.
9. A computer-implemented method as recited
in claim 5 wherein the agent registry data structure includes at least one task declaration, and process characteristics for each active agent.
’115 patent, col. 30, lines 10–16 (emphases added). For context, the undisputed interpretation of “trigger” adopted by
the Board is “a general mechanism for requesting some action be taken when one or more conditions is met.” Microsoft Corp. v. IPA Techs. Inc., No. IPR2019-00810, 2020
WL 6110974, at *50 (P.T.A.B. Oct. 15, 2020) (IPR810 Decision)
(...)
Concerning how Kiss and FIPA97’s registries would be
combined, Microsoft presented evidence, with little elaboration for what Microsoft said a skilled artisan would know
how to do. See, e.g., J.A. 1423–26; J.A. 7227–29, 7240
(Lieberman Decl. ¶¶ 217–19, 228). IPA’s response, which
focused almost entirely on the why questionb, was at most a
simple, unelaborated assertion that Microsoft’s evidence as
to how was not enough, with no identification at all of what
necessary details were missing. See, e.g., J.A. 1865–67 (objecting to why, not how, the combination would be made);
J.A. 4846–48 (making single-sentence assertion about the
how issue); J.A. 12861 (Medvidovic Decl. ¶ 261) (same).
The Board, for its part, did not meaningfully address the
how issue separately from the why issue. It did not identify
any concrete unanswered questions about how to achieve
the combination (which is not a matter of bodily incorporation, but of combining the features required to arrive at the
claim). It did not even say whether the combination required more than simply adding one more field to Kiss’s
registry data structure.
In these circumstances, we see no basis for a reasonable determination rejecting Microsoft’s evidence of why and
how the combination at issue would be made. Accordingly,
we reverse the Board’s finding that Microsoft has not persuasively shown how or why Kiss and FIPA97 would have
been combined to generate the subject matter of claims 8–
10 and 63 of the ’115 patent and claim 28 of the ’560 patent.
Second argument of Microsoft
Microsoft’s second argument on appeal is that, for
claims 29–47 of the ’115 patent, the Board erred in finding
the petition insufficient. Microsoft Opening Br. 57–64.
Claim 29, which is representative for this issue, is reproduced below, as is claim 1, (...)
We affirm the Board’s determination that Microsoft insufficiently pleaded the unpatentability of claims 29–47.
Microsoft’s petition did not grapple with the claim 29 language, simply stating “Kiss/FIPA97 satisfies this claim for
the reasons stated in” the section pertaining to the claim 1
limitation “constructing a goal satisfaction plan.” J.A.
1464. That statement is true, however, only if there are no
differences between the claims that might affect the Kiss
and FIPA97 combination’s disclosure. Yet that central,
necessary premise is one that Microsoft wholly failed to defend in its petition, even though there are potentially
meaningful differences in claim language that warrant discussion
Of note
The Board’s failure to consider Microsoft’s discussion of the claim 86 preamble, which
expressly fills the hole the Board identified in the petition,
and the Board’s resulting misapprehension of the purpose
of the cross-reference, was error. Although IPA relies on
Microsoft Corp. v. FG SRC, LLC, to argue otherwise, see
IPA Opening & Response Br. 72–74, that case does not help
IPA because it involved something quite different from this
case—
a Board refusal to “deduce the existence of an obviousness argument from within [a petition’s] anticipation
argument,” 860 F. App’x 708, 713 (Fed. Cir. 2021).
Of Microsoft's fifth argument
We affirm that determination, and thus we do not
reach the parties’ dispute concerning the proper construction of “computer process.” We need not address whether
Microsoft’s petition was adequate because it was readily
apparent how FIPA97’s Figure 2 meets the claim requirement that each of the plurality of agent registries is resident within a separate computer process. This is so
because
Microsoft’s opening brief in this court provided no
coherent explanation of why this part of the Board’s decision was incorrect. See Microsoft Opening Br. 76–79. Its
effort to do so with a new explanation in its reply brief was
too late. See Microsoft Response & Reply Br. 17–18; Amhil
Enters. Ltd. v. Wawa, Inc., 81 F.3d 1554, 1564 (Fed. Cir.
1996) (“A reply brief, which should ‘reply to the brief of the
appellee,’ is not the appropriate place to raise, for the first
time, an issue for appellate review.” (quoting Fed. R. App.
P. 28(c))).
For those reasons, we affirm the Board’s unpatentability determinations for claims 50–51 and 53–55 of the ’560
patent in IPR2019-00836.