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Filed on behalf of Olaplex, Inc. By: Matthew K. Blackburn DIAMOND McCARTHY LLP 150 California St., Suite 2200 San Francisco, CA 94111 Tel: 415.692.5200 Fax: 415.263.9200 UNITED STATES PATENT AND TRADEMARK OFFICE ________________ BEFORE THE PATENT TRIAL AND APPEAL BOARD ________________ L'ORÉAL USA, INC., Petitioner, v. OLAPLEX, INC., Patent Owner. ________________ Case PGR 2017-00012 Patent No. 9,498,419 ________________ PATENT OWNER’S OPENING BRIEF ON REMAND
PGR 2017-00012 Patent No. 9,498,419 TABLE OF CONTENTS Page TABLE OF AUTHORITIES .................................................................................... ii TABLE OF ABBREVIATIONS ............................................................................. iv PATENT OWNER’S EXHIBIT LIST ......................................................................v I. THE FEDERAL CIRCUIT’S DECISION AND MANDATE .......................1 II. GIVEN THE SUBSTANTIAL OBJECTIVE EVIDENCE AND WEAK PRIMARY EVIDENCE, THE BOARD SHOULD FIND L'ORÉAL FAILED TO SHOW THE ’419 CLAIMS ARE NOT PATENTABLE ...................................1 A. Objective Evidence Weighs Heavily in Favor of Non - Obviousness .......2 B. No Evidence Shows a POSA Would Have Been Motivated by Ogawa or Kitabata Alone to Use Maleic Acid in a Bleaching Method ................4 C. At Best, Berkemer and KR’564 Are Weak Evidence of Motivation to Select Maleic Acid for Use in a High-pH Bleaching Method ..................6 D. Objective Evidence Outweighs the Primary Evidence of Obviousness ...7 III. CONCLUSION................................................................................................8 -i-
PGR 2017-00012 Patent No. 9,498,419 TABLE OF AUTHORITIES Page(s) Cases Adv. Display Sys., Inc. v. Kent State Univ., 212 F.3d 1272 (Fed. Cir. 2000)..............................................................................8 Applied Materials, Inc. v. Adv. Semiconductor Materials Am., Inc., 98 F.3d 1563 (Fed. Cir. 1996)................................................................................2 In re Jones, 958 F.2d 347 (Fed. Cir. 1992)................................................................................5 Leo Pharm. Prods., Ltd. v. Rea, 726 F.3d 1346 (Fed. Cir. 2013)..............................................................................4 Liqwd, Inc. v. L'Oréal USA, Inc., 941 F.3d 1133 (Fed. Cir. 2019)................................................................. 1, 3, 7, 8 Merck & Co. Inc. v. Biocraft Labs. Inc., 874 F.2d 804 (Fed. Cir. 1989)................................................................................5 Minn. Mining & Mfg. Co. v. Johnson & Johnson Orthopaedics, Inc., 976 F.2d 1559 (Fed. Cir. 1992)..............................................................................8 Specialty Composites v. Cabot Corp., 845 F.2d 981 (Fed. Cir. 1988)................................................................................3 Stephen Slesinger, Inc. v. Disney Enters., Inc., 702 F.3d 640 (Fed. Cir. 2012)................................................................................3 WBIP, LLC v. Kohler Co., 829 F.3d 1317 (Fed. Cir. 2016)..........................................................................2, 3 Other Authorities Final Written Decision, L'Oréal USA, Inc. v. Liqwd, Inc., PGR2017-00012, Paper 102 (PTAB Jun. 27, 2018) ................................................................. passim Institution Decision, L'Oréal USA, Inc. v. Liqwd, Inc., PGR2017-00012, Paper 17 (PTAB Jul. 19, 2017) ..............................................................................4 -ii-
PGR 2017-00012 Patent No. 9,498,419 TABLE OF AUTHORITIES (continued) Page(s) Liqwd Inc’s Patent Owner Response Under 37 C.F.R. §42.220, L'Oréal USA, Inc. v. Liqwd, Inc., PGR2017-00012, Paper 44 (PTAB Oct. 20, 2017)...................................................................................................................3, 7 Non-Confidential Appellee L'Oréal USA, Inc’s Response Brief, Liqwd, Inc. v. L'Oréal USA, Inc., No. 18-2152, Doc. No. 38 (Fed. Cir. Nov. 14, 2018) .........3 Non-Confidential Reply Brief for Patent Owner-Appellant, Liqwd, Inc. v. L'Oréal USA, Inc., No. 18-2152, Doc. No. 41 (Fed. Cir. Nov. 28, 2018) .............3 Petition for Post-Grant Review of U.S. Patent 9,498,419, L'Oréal USA, Inc. v. Liqwd, Inc., PGR2017-00012, Paper 2 (PTAB Jan. 31, 2017) ..........................4 Transcript of Oral Hearing, L'Oréal USA, Inc. v. Liqwd, Inc., PGR2017- 00012, Paper 98 (PTAB Apr. 11, 2018) ................................................................5 -iii-
PGR 2017-00012 Patent No. 9,498,419 TABLE OF ABBREVIATIONS ’419 patent Pressly et al. U.S. Patent No. 9,498,419 B2 (Ex. 1001) German Patent Application Publ. No. 1,220,969 (L'Oréal’s supplied Berkemer translation at Ex. 1004) Board Patent Trial and Appeal Board DTPA Diethylenetriaminepentaacetic acid EDTA Ethylenediaminetetraacetic acid Final Written Decision in L'Oréal USA, Inc. v. Liqwd, Inc., FWD PGR2017-00012, Paper 102 (PTAB Jun. 27, 2018) Kitabata U.S. Patent Publ. No. 2002/0189034 (Ex. 1005) Korean Patent Application Publ. No. 10-2006-0059564 (L'Oréal’s KR’564 supplied partial translation at Ex. 1018) L'Oréal Petitioner L'Oréal USA, Inc. Ogawa U.S. Patent No. 7,044,986 (Ex. 1002) Olaplex Patent owner Olaplex, Inc. and/or former patent owner Liqwd, Inc. Post-Grant Review Petition in L'Oréal USA, Inc. v. Liqwd, Inc., Pet. PGR2017-00012, Paper 2 (PTAB Jan. 31, 2017) POSA Person of ordinary skill in the art -iv-
PGR 2017-00012 Patent No. 9,498,419 PATENT OWNER’S EXHIBIT LIST Exhibit Description 2001 Listing of claims 1 – 8 and 10 of U.S. Patent No. 9,498,419 Complaint filed January 5, 2017, in Liqwd, Inc. et al. v. L'Oréal USA, 2002 Inc., et al., Case No. 1:17 - cv - 00014 - SLR (D. Del.) Plaintiffs’ Opening Brief in Support of Motion for Preliminary Injunction, Redacted - Public version, filed January 18, 2017, in Liqwd, 2003 Inc. et al. v. L'Oréal USA, Inc., et al., Case No. 1:17 - cv - 0014 - SLR (D. Del.) August 25, 2016 Third Party Submission regarding Singleton U.S. 2004 Patent No. 5,221,286 and Berkemer German Laid - Open Application DE 1 220 969 August 29, 2016 Third Party Submission regarding Ogawa U.S. Patent 2005 No. 7,044,986 September 14, 2016 Third Party Submission regarding Singleton U.S. 2006 Patent No. 5,221,286, Kitabata U.S. Patent Publ. No. 2002/0189034, and Berkemer German Laid - Open Application DE 1 220 969 September 23, 2016 Third Party Submission regarding Wahler PCT 2007 Publication No. WO2014/207097 2008 October 13, 2016 Supplemental Notice of Allowance Complaint filed November 22, 2016, in Liqwd, Inc. et al. v. L'Oréal 2009 USA, Inc., et al., Case No. 2:16 - cv - 08708 (C.D. Cal.) CONFIDENTIAL — Patent Owner’s Discovery Requests to Petitioner, 2010 dated August 29, 2017 Delaware District Court’s Order in Liqwd, Inc. et al. v. L'Oréal USA, 2011 Inc., 17 - 14 - SLR (D. Del.), dated July 6, 2017, which denied Patent Owner’s Request for a Preliminary Injunction 2012 CONFIDENTIAL — E - mail Communication 2013 Petitioner’s Advertisements mentioning maleic acid in their products -v-
PGR 2017-00012 Patent No. 9,498,419 PATENT OWNER’S EXHIBIT LIST (continued) Exhibit Description Delaware District Court’s Order in Liqwd, Inc. et al. v. L'Oréal USA, 2014 Inc., 17 - 14 - SLR (D. Del.), dated February 13, 2017, which set briefing and discovery schedule for Preliminary Injunction motion Patent Owner’s 1st Amended Rule 30(b)(6) Deposition Notice in 2015 Liqwd, Inc. et al. v. L'Oréal USA, Inc., 17 - 14 - SLR (D. Del.), dated May 2, 2017 E - mail string between counsel regarding Patent Owner’s Request for 2016 Additional Discovery CONFIDENTIAL/REDACTED Version of Patent Owner’s Motion 2017 for Additional Discovery (un - redacted is Paper 27) CONFIDENTIAL/REDACTED Version of Patent Owner’s 2018 Discovery Requests to Petitioner (un - redacted is Exhibit 2010) REDACTED version of Paper 37 Order re Conduct of Proceedings, 2019 dated Sept. 27, 2017 2020 REDACTED version of Ex 3001 Email String re Routine Discovery 2021 Declaration of Thomas Dispenza 2022 CONFIDENTIAL — Declaration of Eric Pressly, Ph.D. 2023 CONFIDENTIAL — Declaration of Dean Christal 2024 Copy of U.S. Patent Appl. Ser. No. 14/713,885, filed May 15, 2015 2025 CONFIDENTIAL — Declaration of Edward T. Borish, Ph.D. 2026 Curriculum Vitae Of Edward T. Borish, Ph.D. Brown, K. C., Chapter 7 “Hair Coloring” in HAIR AND HAIR CARE 2027 (Dale H. Johnson, ed., 1997) -vi-
PGR 2017-00012 Patent No. 9,498,419 PATENT OWNER’S EXHIBIT LIST (continued) Exhibit Description FMC Webinar, “The Science of Persulfate Activation” (April 24, 2013), available at 2028 http://www.peroxychem.com/media/24107/FMC_The_Science_of_Pers ulfate_Activation_webinar - 4 - 24 - 13_Final.pdf (last visited 10/16/2017) Bolduc, C. et al., “Hair Care Products: Waving, Straightening, 2029 Conditioning, and Coloring,” Clinics in Dermatology 19:431 – 436 (2001) Chp. 6: Interactions of Shampoos and Creme Rinses from ROBBINS, 2030 C.R., Chemical & Physical Behavior of Human Hair (5th Ed. 2012) 2031 Label for Redken Curvaceous conditioner 2032 Label for Matrix Biolage Advanced shampoo 2033 Label for Pureology (a L'Oréal brand) Strength Cure conditioner 2034 Vertellus Safety Data Sheet for Maleic Acid (2011) 2035 Matrix Bond Ultim8 Bottle Instructions and Ingredient List 2036 Matrix Bond Ultim8 Package Instructions 2037 Analyze, Inc. Report regarding Maleic Acid Concentrations 2038 CONFIDENTIAL — L'Oréal Testing Document (PX100) 2039 CONFIDENTIAL — L'Oréal Testing Document (PX108) CONFIDENTIAL — Rule 30b6 Deposition testimony of Kimberly 2040 Dreher, May 22, 2017 2041 Redken pH - BONDER Instructions and Ingredient List 2042 Redken pH - BONDER Package Instructions 2043 L'Oréal Professionnel Smartbond Instructions and Ingredient List 2044 L'Oréal Professionnel Smartbond Package Instructions -vii-
PGR 2017-00012 Patent No. 9,498,419 PATENT OWNER’S EXHIBIT LIST (continued) Exhibit Description Chp. 5: Bleaching and Oxidation of Human Hair from ROBBINS, C.R., 2045 Chemical & Physical Behavior of Human Hair (5th Ed. 2012) 2046 Deposition transcript of Arun Nandagiri, dated October 6, 2017 REDACTED Version of Ex. 2022 (Eric Pressly Declaration, dated 2047 October 19, 2017) REDACTED Version of Ex. 2023 (Dean Christal Declaration, dated 2048 October 18, 2017) REDACTED Version of Ex. 2025 (Edward Borish Declaration, dated 2049 October 20, 2017) REDACTED Version of Paper 44 (Liqwd Patent Owner Response, 2050 dated October 20, 2017) 2051 Printout of website http://Brialab.com (dated February 28, 2018) H.N. Po et al., “The Henderson - Hasselbalch Equation: Its History and 2052 Limitation,” J. of Chem. Educ., 78 (11):1499 - 1503 (2001) 2053 Deposition transcript of David Sherman, dated October 12, 2017 2054 Deposition transcript of Jina Bang, dated October 11, 2017 2055 Deposition transcript of Arun Nandagiri, dated March 2, 2018 CONFIDENTIAL — Deposition transcript of Melanie Crim, dated 2056 March 6, 2018 2057 Deposition transcript of Arun Nandagiri, dated March 14, 2018 Signature page and errata of Thomas Dispenza for December 27, 2017 2058 deposition transcript Signature page and errata of Edward Borish, Ph.D. for January 5, 2018 2059 deposition transcript -viii-
PGR 2017-00012 Patent No. 9,498,419 PATENT OWNER’S EXHIBIT LIST (continued) Exhibit Description REDACTED Version of Paper 70 (Patent Owner’s Observations on 2060 Cross - Examination of Petitioner’s Reply Witnesses Nandagiri and Crim) REDACTED Version of Paper 72 (Patent Owner’s Motion to Exclude 2061 Petitioner’s Inadmissible Evidence) Patent Owner’s Submission of Supplemental Evidence Under 37 C.F.R. 2062 § 42.64(b)(2), served November 13, 2017 Blackburn Declaration Regarding Exhibits 2028, 2031 – 2037, and 2063 2041 – 2044, served November 13, 2017 2064 Redken pH - BONDER Package Instructions REDACTED Version of Paper 77 (Corrected Patent Owner’s Motion 2065 for Observations on Cross - Examination of Petitioner’s Reply Witnesses Nandagiri and Crim) REDACTED Version of Paper 85 (Patent Owner’s Reply in Support of 2066 its Motion to Exclude Petitioner’s Evidence Pursuant to 37 C.F.R. § 42.64(c)) -ix-
PGR 2017-00012 Patent No. 9,498,419 Olaplex submits this brief pursuant to the Board’s Order (Paper 108). When the obviousness question is analyzed anew under the Federal Circuit’s mandate (which directed consideration of L'Oréal’s copying from Olaplex rather than developing independently L'Oréal’s own process using information from the prior art), this Board should find that claims 1 – 8 and 10 of the ’419 patent are not obvious. To conclude otherwise in the face of this powerful evidence would give in to improper hindsight and ex post reasoning. I. THE FEDERAL CIRCUIT’S DECISION AND MANDATE The Federal Circuit affirmed the Board’s prior factual finding that L'Oréal deliberately copied Olaplex’s patented method of using maleic acid during hair bleaching by requesting and obtaining access to Olaplex’s non-public information and copying it, rather than because of L'Oréal’s independent development. Liqwd, Inc. v. L'Oréal USA, Inc., 941 F.3d 1133, 1138 – 39 (Fed. Cir. 2019) (citing FWD at 29 – 30). The Federal Circuit held that the Board erred when it deemed the copying finding legally irrelevant, and therefore vacated the Board’s prior decision and remanded the case back to the Board with instructions to consider and give appropriate weight to L'Oréal’s copying. Id. at 1139. II. GIVEN THE SUBSTANTIAL OBJECTIVE EVIDENCE AND WEAK PRIMARY EVIDENCE, THE BOARD SHOULD FIND L'ORÉAL FAILED TO SHOW THE ’419 CLAIMS ARE NOT PATENTABLE Evidence of all Graham factors must be weighed de novo to assess if the -1-
PGR 2017-00012 Patent No. 9,498,419 invention as a whole was obvious. Applied Materials, Inc. v. Adv. Semiconductor Materials Am., Inc., 98 F.3d 1563, 1570 (Fed. Cir. 1996). Objective indicia play an especially important role and “guard against the statutorily proscribed hindsight reasoning.” WBIP, LLC v. Kohler Co., 829 F.3d 1317, 1328 (Fed. Cir. 2016). The primary evidence (the first three Graham factors) is, at best for L'Oréal, scanty.1 The Board previously found all elements of claim 1 were disclosed in Ogawa or Kitabata, but only when maleic acid is selected for use in the disclosed methods. FWD at 13, 33. The Board said “the most important issue is whether Berkemer and KR’564 would have provided a [POSA] with an additional reason to choose maleic acid” from the large chemical lists of Ogawa and Kitabata. Id. at 39. Little in the prior art suggests selecting maleic acid. Such evidence might arguably support an obviousness finding but only when the prior art is considered in isolation. Now that the finding that L'Oréal copied must be considered, and since such objective evidence is the most powerful sort of evidence, the Board should find that L'Oréal has not met its burden to show the challenged claims are obvious. A. OBJECTIVE EVIDENCE WEIGHS HEAVILY IN FAVOR OF NON - OBVIOUSNESS The objective evidence strongly favors patentability. First and most 1 Olaplex reserves the right to argue on appeal that even the prior art alone cannot support a finding of obviousness. -2-
PGR 2017-00012 Patent No. 9,498,419 importantly, the Board found and the Circuit affirmed that “L’Oréal copied [Olaplex]’s patented method of using maleic acid.” Liqwd, 941 F.3d at 1139. The Board did not find insufficient nexus between L'Oréal’s copying and the ’419 patent. The copied unpublished patent application (Ex. 2024) discloses the specifically claimed process. See WBIP, 829 F.3d at 1329 (nexus presumed if “objective evidence is tied to a specific [process] and that [process] ‘is the invention disclosed and claimed.’”); see also Paper 44 at 96 (collecting evidence). In the appeal, L’Oréal again advanced a lack-of-nexus argument, which Olaplex contested. Liqwd, Inc. v. L'Oréal USA, Inc., No. 18-2152, Doc. Nos. 38 (at 53) and 41 (at 13). The Federal Circuit’s decision acknowledged nexus is required and the remand instructions do not mention it, thus implicitly and necessarily agreeing with Olaplex that nexus exists and rejecting L'Oréal’s contrary argument. See Liqwd, 941 F.3d at 1138 – 39; see Stephen Slesinger, Inc. v. Disney Enters., Inc., 702 F.3d 640, 645 (Fed. Cir. 2012) (implicit determination given issue- preclusive effect). Therefore, L'Oréal’s deliberate choice to copy Olaplex’s non- public technology strongly favors non-obviousness. See Specialty Composites v. Cabot Corp., 845 F.2d 981, 985 (Fed. Cir. 1988) (“evidence that [patent challenger] closely copied the invention” was “indicative of unobviousness”) (internal quotation marks omitted); WBIP, 829 F.3d at 1336 (“The fact that a competitor copied technology suggests it would not have been obvious.”) -3-
PGR 2017-00012 Patent No. 9,498,419 Second, there was a multi-decade delay between when L'Oréal says a POSA allegedly was motivated to use maleic acid in hair bleaching (1966) and when that actually happened (2014). More than a decade passed between Ogawa’s and Kitabata’s publications and the’419 ancestral application filing. Yet no one, other than the ’419 patent inventors, thought to add maleic acid into a high-pH bleaching method to address bleach damage. This powerfully demonstrates that a POSA was not actually motivated to select maleic acid. See Paper 17 at 18, 26 (delay between Berkemer publication and Ogawa/Kitabata publication “creates a genuine dispute of material fact” whether a POSA had reason to combine references); Leo Pharm. Prods., Ltd. v. Rea, 726 F.3d 1346, 1359 (Fed. Cir. 2013) (two-year delay between prior art and patent filing persuasive evidence of non-obviousness). B. NO EVIDENCE SHOWS A POSA WOULD HAVE BEEN MOTIVATED BY OGAWA OR KITABATA ALONE TO USE MALEIC ACID IN A BLEACHING METHOD L'Oréal’s Petition relies on both Berkemer and KR’564 to allegedly suggest changing Ogawa’s Example 3 by replacing two chelating agents (EDTA and ascorbic acid) with equal weights of maleic acid or to select maleic acid as Kitabata’s pH adjuster. Pet., 50 – 54, 74 – 75. The FWD changes tack and says Ogawa or Kitabata by itself “provides a reason to use maleic acid in its bleaching treatment.” FWD at 14, 32, 34. However, the Board acknowledged evidence that (1) at high pH (as used during bleaching) charges on hair fibers would repel maleic -4-
PGR 2017-00012 Patent No. 9,498,419 acid and (2) “maleic acid itself is a skin sensitizer and can cause allergic reactions” and (3) “mixing maleic acid with oxidizers can be dangerous.” FWD at 22 – 23, 33. This would have dissuaded a POSA from selecting maleic acid for use in high-pH hair bleaching. Also, no witness testified that a POSA would have found in Ogawa or Kitabata a reason to select maleic acid for use in hair bleaching methods. Merck & Co. Inc. v. Biocraft Labs. Inc., 874 F.2d 804, 807 (Fed. Cir. 1989) (cited in the FWD at 20) is inapposite because the chemical lists in Ogawa and Kitabata are quite broad. See In re Jones, 958 F.2d 347, 350 (Fed. Cir. 1992) (“declin[ing] to extract from Merck the rule that … regardless of how broad, a disclosure of a chemical genus renders obvious any species that happens to fall within it”). Ogawa says the chelating agent is not limited, illustrates maleic acid as one of ten chelating agent acids “and their salts” (greatly increasing the potential candidates), and it is not preferred. Ex. 1002, 2:1 – 14, 2:64 – 3:3; see also FWD at 9; Ex. 2025, ¶95; Paper 98 at Tr. 11:15 – 12:2. Ogawa’s Example 3 uses multiple chelators (EDTA and ascorbic acid) further adding to potential chelator candidates, leaving a POSA to choose from “a potentially very large set” of chelators. Ex. 2025, ¶95. Ogawa’s claim 8 mentions maleic acid, but in a “method of dyeing hair” (not in hair bleaching). Ex. 1002, 8:34 – 39. Kitabata mentions maleic acid as one of a large number of “polycarboxylic acid and their salts” pH-adjusters. Ex. 1005, ¶¶35, 39; Ex. 2046, Tr. 108:20 – 111:24; Ex. 2025, ¶100. Neither -5-
PGR 2017-00012 Patent No. 9,498,419 reference identifies any benefit if maleic acid were added to hair bleach. Further, contrary to L'Oréal’s EDTA-replacement theory, a POSA would have understood that Ogawa’s technology requires EDTA as the chelator. Specifically, Ogawa’s example 1 and comparative example 1 differ only in that the latter omits EDTA (but has another chelator) and gives poor results. Ex. 1002, 5:47 – 6:17; Ex. 1026, Tr. 158:12 – 160:10; Ex. 2046, Tr. 76:19 – 77:21. If EDTA was unavailable for use with Ogawa, a POSA would have tried DTPA and if that did not work, would have stopped. Ex. 1026, Tr. 163:12 – 164:16. Thus, Ogawa itself actually shows why L'Oréal’s proposed change would not have been made. C. AT BEST, BERKEMER AND KR’564 ARE WEAK EVIDENCE OF MOTIVATION TO SELECT MALEIC ACID FOR USE IN A HIGH-PH BLEACHING METHOD The Board acknowledged “a similar weight of evidence” supports Berkemer’s benefits being limited to low pH, but said a POSA “would have been … led to adjust the pH of the bleaching process to achieve the desired results.” FWD at 22; see also Ex. 1004, 2:30 – 37 (maleic acid counteracts oxidation necessary for bleaching by reacting with peroxides); and Ex. 2046 at Tr. 106:14 – 107:17 (POSA would not know if maleic acid would remain in Ogawa’s mixture when applied to the hair). Berkemer uses maleic acid only at low pH. Ex. 1004, 3:11 – 12 (pH 1.9 – 4); see also Ex. 1018-3 (KR’564 uses mild acid at pH 4 – 5). If a POSA had increased the pH in order to bleach hair, no evidence -6-
PGR 2017-00012 Patent No. 9,498,419 shows a POSA would have expected the same benefit to occur at high pH while bleaching hair. This reduces or removes the reason to select maleic acid. KR’564 says any mild organic acid neutralizes alkali in hair and expresses no preference for maleic acid. Paper 44 at 30 (citing Ex. 2025, ¶167 and Ex. 2046, Tr. 223:10 – 22); Ex. 1018-1, -2. It cannot motivate the selection of maleic acid. Thus, evidence on the first three Graham factors is meager. D. OBJECTIVE EVIDENCE OUTWEIGHS THE PRIMARY EVIDENCE OF OBVIOUSNESS Given that L'Oréal bears the burden of persuasion, that the prior art by itself was a close call, and that the copying finding must be considered, the Board should now find that the ’419 patent claims are not obvious. Other than improper hindsight, there was no reason to use maleic acid in hair bleaching, which explains the 48-year gap between the ’419 patent priority date and Berkemer’s publication. A remand to the Board was necessary here because of the weak primary evidence of obviousness, in particular regarding the selection of maleic acid (see Sections II.B – C, above) and the strong objective evidence of copying, which makes a difference and demonstrates patentability. See Liqwd, 941 F.3d at 1139 (remanding to “the Board for further analysis,” with instruction to weigh copying finding appropriately). Such copying evidence is “compelling” when (1) the “[copied] device was virtually an identical replica of the claimed invention” and (2) the infringer copied -7-
PGR 2017-00012 Patent No. 9,498,419 the patentee’s formula and disassembled a prototype, and “merits even greater weight” when the copier failed to develop independently the claimed invention. Adv. Display Sys., Inc. v. Kent State Univ., 212 F.3d 1272, 1285 – 86 (Fed. Cir. 2000); Minn. Mining & Mfg. Co. v. Johnson & Johnson Orthopaedics, Inc., 976 F.2d 1559, 1574 – 75 (Fed. Cir. 1992) (competitors’ failure to develop the patented invention suggested nonobviousness). Similarly, here, the Board found L'Oréal selected maleic acid as the key ingredient in three different hair bleach additive products because it copied Olaplex’s non-public information, rather than because of L’Oréal’s independent development. Liqwd, 941 F.3d at 1138 – 39 (citing FWD at 29 – 30). III. CONCLUSION The Board should confirm claims 1 – 8 and 10 of the ’419 patent are patentable. Dated: February 13, 2020 Respectfully Submitted, By: /Matthew K. Blackburn/ Matthew K. Blackburn (Reg. No. 47,428) DIAMOND McCARTHY LLP 150 California Street, Suite 2200 San Francisco, CA 94111 Tel: 415.692.5202 Rivka D. Monheit (Reg. No. 48,731) PABST PATENT GROUP LLP 1545 Peachtree St. NE, Suite 320 Atlanta, GA 30309 Tel: 404.879.2152 Attorneys for Patent Owner Olaplex, Inc. -8-
PGR 2017-00012 Patent No. 9,498,419 CERTIFICATE OF SERVICE I certify that the foregoing PATENT OWNER’S OPENING BRIEF ON REMAND is being filed via PTAB E2E, and was served by e - mail on February 13, 2020 in its entirety on the following: Michelle E. O’Brien Timothy J. Murphy THE MARBURY LAW GROUP, PLLC 11800 Sunrise Valley Drive, 15th Floor Reston, VA 20191 Tel: (703) 391 - 2900 Fax: (703) 391 - 2901 Email: mobrien@marburylaw.com Email: tjmurphy@marburylaw.com Email: pat - docketing@marburylaw.com Attorneys for Petitioner L'Oréal USA, Inc. Dated: February 13, 2020 /Matthew K. Blackburn/ Matthew K. Blackburn (Reg. No. 47,428)
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