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1 QUINN EMANUEL URQUHART & SULLIVAN, LLP Charles K. Verhoeven (Bar No. 170151) charlesverhoeven@quinnemanuel.com 2 50 California Street, 22nd Floor 3 San Francisco, California 94111 Telephone: (415) 875-6600 4 Facsimile: (415) 875-6700 Kevin P.B. Johnson (Bar No. 177129 kevinjohnson@quinnemanuel.com Victoria F. Maroulis (Bar No. 202603) 6 victoriamaroulis@quinnemanuel.com th 7 555 Twin Dolphin Drive, 5 Floor Redwood Shores, California 94065-2139 8 Telephone: (650) 801-5000 Facsimile: (650) 801-5100 9 Michael T. Zeller (Bar No. 196417) michaelzeller@quinnemanuel.com 10 865 S. Figueroa St., 10th Floor 11 Los Angeles, California 90017 Telephone: (213) 443-3000 12 Facsimile: (213) 443-3100 5 13 Attorneys for SAMSUNG ELECTRONICS 14 CO., LTD., SAMSUNG ELECTRONICS AMERICA, INC. and SAMSUNG 15 TELECOMMUNICATIONS AMERICA, LLC 16 17 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA, SAN JOSE DIVISION CASE NO. 11-cv-01846-LHK (PSG) STATEMENT OF RECENT DEVELOPMENT REGARDING REEXAMINATION AND FINAL REJECTION OF CLAIMS OF U.S. PATENT NO. 7,844,915

18 APPLE INC., a California corporation, 19 20 vs. Plaintiff,

21 SAMSUNG ELECTRONICS CO., LTD., a Korean business entity; SAMSUNG 22 ELECTRONICS AMERICA, INC., a New York corporation; SAMSUNG 23 TELECOMMUNICATIONS AMERICA, LLC, a Delaware limited liability 24 company, 25 26 27 28
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Defendant.

Case No. 11-cv-01846-LHK (PSG) STATEMENT OF RECENT DEVELOPMENT

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Defendants Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., and

2 Samsung Telecommunications America, LLC (collectively Samsung) bring to the Courts 3 attention the Patent and Trademark Offices Continuation of Advisory Action (Advisory Action) 4 in the ex parte reexamination of U.S. Patent No. 7,844,915 (the 915 Patent), dated November 5 20, 2013, a copy of which is attached hereto as Exhibit A. 6 The Advisory Action takes into consideration and rejects the patent owners response and

7 declaration of Dr. Scott Klemmer filed on October 28, 2013 and provided to the Court on October 8 30, 2013. Dkt. 2614. The PTO considered and rejected Apples argument that the 915 claims 9 should be construed such that any set of inputs greater than 1 be interpreted as a gesture 10 operation. In finding the arguments unpersuasive, the PTO notes that there are no examples in 11 the specification where more than two input points is interpreted as a gesture operation. 12 Moreover, Federal Circuit law requires the construction of the term or to mean that the items 13 in the sequence are alternatives to each other, such that the claim is deemed anticipated if any of 14 the structures or compositions within the scope of the claim is known in the prior art. Advisory 15 Action at 4-5 (citing Schumer v. Laboratory Computer Systems Inc., 308 F.3d 1304, 1311, 64 16 USPQ2d 1832, 1838 (Fed. Cir. 2002) and Brown v. 3M, 265 F.3d 1349, 60 USPQ 2d 1375, 1376 17 (Fed. Cir. 2001). 18 The 915 claims, including claim 8 asserted at trial, are finally rejected and invalid as

19 anticipated by the Nomura and Hillis references by the PTO. At this point, Apples only option is 20 to file a Notice of Appeal, else, the prosecution of the present ex parte reexamination proceeding 21 WILL BE TERMINATED and a Notice of Intent to Issue Ex Parte Reexamination Certificate will 22 be mailed in due course. Any finally rejected claims, or claims objected to, will be

23 CANCELLED. Ex Parte Reexamination Advisory Action Before the Filing of an Appeal Brief 24 at 1. 25 This PTO decision calls into question the entire jury verdict in this trial. During its

26 presentation, Apple made a deliberate decision not to separate the damages between the different 27 asserted patents. Therefore, it will be impossible to determine what allocation of damages belong 28 to the invalid 915 patent versus the other patents.
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At the hearing on Samsungs motion to stay in light of the 381 reexamination, the Court

2 indicated that it would likely stay any proceedings if the Examiner does not reopen the 3 prosecution and Apple is forced to file a notice of appeal. Dkt. 2320, April 29, 2013 Tr. at 12:94 13. In the order the same day, the Court extended this reasoning to the 915 patent which was then 5 still in examination. Dkt. 2316 at 2. In light of these developments with the 915 patent

6 reexamination, Samsung will file an emergency motion to stay today. 7 8 9 DATED: November 20, 2013 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
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QUINN EMANUEL URQUHART & SULLIVAN, LLP

By /s/ Victoria F. Maroulis Charles K. Verhoeven Kevin P.B. Johnson Victoria F. Maroulis Michael T. Zeller Attorneys for SAMSUNG ELECTRONICS CO., LTD., SAMSUNG ELECTRONICS AMERICA, INC., and SAMSUNG TELECOMMUNICATIONS AMERICA, LLC

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Case No. 11-cv-01846-LHK (PSG) STATEMENT OF RECENT DECISION (L.R. 7-3(d))