Apple Inc. v. Uniloc 2017 LLC

Court of Appeals for the Federal Circuit·Decided February 9, 2021·No. 19-1151·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

APPLE INC., FACEBOOK, INC., WHATSAPP, INC., Appellants

v.

UNILOC 2017 LLC,

Cross-Appellant

2019-1151, 2019-1179, 2019-1203

Appeals from the United States Patent and Trademark Office, Patent Trial and Appeal Board in Nos. IPR2017- 00222, IPR2017-01635.

Decided: February 9, 2021

LAUREN B. FLETCHER, Wilmer Cutler Pickering Hale and Dorr LLP, Boston, MA, for appellant Apple Inc. Also represented by HEATH BROOKS, Washington, DC; S. CALVIN WALDEN, New York, NY.

HEIDI LYN KEEFE, Cooley LLP, Palo Alto, CA, for appellants Facebook, Inc., WhatsApp, Inc. Also represented by LOWELL D. MEAD, MARK R. WEINSTEIN; PHILLIP EDWARD MORTON, Washington, DC.

2 APPLE INC. v. UNILOC 2017 LLC

JAMES ETHERIDGE, Etheridge Law Group, Southlake, TX, for cross-appellant. Also represented by RYAN S. LOVELESS, BRETT MANGRUM, JEFFREY A. STEPHENS.

Before LOURIE, WALLACH, and CHEN, Circuit Judges.

LOURIE, Circuit Judge.

Apple Inc. (“Apple”) petitioned for inter partes review of U.S. Patent 8,243,723 (“the ’723 patent”), owned by Uniloc Luxembourg S.A. (“Uniloc”). The United States Patent and Trademark Office Patent Trial and Appeal Board (“the Board”) held that claims 1 and 2 of the ’723 patent would have been obvious over the prior art but that Apple failed to demonstrate by a preponderance of the evidence that claims 3–8 would have been obvious. See Apple Inc. v. Uniloc Luxembourg S.A., No. IPR2017-00222, 2018 WL 2355988 (P.T.A.B. May 23, 2018) (“Decision”). Apple appeals the Board’s holding that it failed to demonstrate unpatentability of claims 3–8, and Uniloc cross-appeals the Board’s holding that claims 1 and 2 would have been obvious . We affirm the Board’s decision in all respects.

BACKGROUND

Uniloc owns the ’723 patent, which is directed to systems and methods for delivering instant voice-over-IP (“VoIP”) messages over the Internet. Traditional telephony is based on a public switched telephone network (“PSTN”). ’723 patent col. 1 ll. 20–21. The patent acknowledges that voice messaging in both PSTN and VoIP as well as instant text messaging over an IP network were known. Id. col. 2 ll. 18–30. But the patent asserts that at the time of the invention there remained a need for instant VoIP messaging with PSTN support. Id. col. 2 ll. 43–49.

The ’723 patent purports to address this need by providing a local instant voice messaging (“IVM”) system that includes an IVM server and one or more IVM clients,

APPLE INC. v. UNILOC 2017 LLC 3

such as VoIP telephones. Id. col. 6 ll. 48–55. The IVM server stores users that are known to the server, including IVM clients and legacy telephone clients. Id. col. 13 ll. 56– 58. The server stores a record for each user, including a contact list that indicates other users with which the user wishes to exchange instant voice messages. Id. col. 13 ll. 58–62. The server also maintains a record of the connectivity status of each IVM client (i.e., whether the client is connected to the IVM server and available to receive messages ), id. col. 12 ll. 46–52, and facilitates the transmission of messages between clients, id. col. 7 ll. 59–61.

To initiate transmission of a voice message, an IVM client displays a user’s contact list, and the user selects one or more IVM recipients to whom to transmit a voice message . Id. col. 7 ll. 61–67. “The user selection also generates a start signal to the IVM client that the user is ready to begin instant voice messaging.” Id. col. 8 ll. 1–3. The patent discloses two modes of operation—a “record mode” and an “intercom mode.” Id. col. 7 ll. 53–57. In record mode, in response to the start signal, the IVM client records the user’s speech into a digitized audio file stored on the IVM client. Id. col. 8 ll. 3–7. If a recipient IVM client is connected to the IVM server, the audio file is immediately transmitted to the recipient client. Id. col. 8 ll. 28–30. If a recipient client is not connected to the server (i.e., if the recipient client is “unavailable”), the audio file is temporarily stored on the server and transmitted to the recipient client when the client connects to the server. Id. col. 8 ll. 30–35.

Unlike record mode, according to the patent, intercom mode implements real-time instant voice messaging. In intercom mode, instead of recording the user’s speech to an audio file, the IVM client uses one or more buffers to write and transmit successive portions of the user’s speech to the IVM server. Id. col. 11 ll. 33–43.

4 APPLE INC. v. UNILOC 2017 LLC

Apple petitioned for inter partes review of claims 1–8 of the ’723 patent. Claim 1 is the only independent claim at issue, with claims 2–8 depending directly or indirectly from claim 1. Claims 1, 3, and 8 are specifically relevant to this appeal and are reproduced below.

1. A method for instant voice messaging over a packet-switched network, the method comprising: monitoring a connectivity status of nodes within the packet-switched network, said connectivity status being available and unavailable; recording the connectivity status for each of the nodes; associating a sub-set of the nodes with a client; transmitting a signal to a client including a list of the recorded connectivity status for each of the nodes in the sub-set corresponding to the client; receiving an instant voice message having one or more recipients; delivering the instant voice message to the one or more recipients over a packet-switched network; temporarily storing the instant voice message if a recipient is unavailable; and delivering the stored instant voice message to the recipient once the recipient becomes available.

Id. col. 23 l. 56–col. 24 l. 16.

3. The method for instant voice messaging over a packet-switch network according to claim 1, further comprising the step of: controlling a method of generating the instant voice message based upon the connectivity status of said one or more recipient.

APPLE INC. v. UNILOC 2017 LLC 5

Id. col. 24 ll. 17–26.

8. The method for instant voice messaging over a packet-switch network according to claim 6, wherein said intercom mode comprises the steps of: buffering each of a plurality of successive portions of the instant voice as the instant voice message is recorded; transmitting from each successive buffered portion ; and delivering each successive portion to the recipients wherein the recipients audibly playing each successive portion as it is delivered.

Id. col. 24 ll. 46–54.

Relevant to this appeal, Apple alleged that (1) claim 1 would have been obvious over U.S. Patent App. Pub. 2002/0146097 (“Vuori”), (2) claims 2–7 would have been obvious over Vuori in view of U.S. Patent App. Pub. 2003/0219104 (“Malik”), and (3) claim 8 would have been obvious over Vuori in view of Malik and U.S. Patent 6,192,395 (“Lerner”).

Vuori discloses systems and methods for sending short voice messages (“SVMs”) between mobile devices. To transmit an SVM, a user device records a message spoken by the user. Vuori ¶ 32. The user selects one or more recipients of the SVM, and the user device transmits the recorded message to an SVM service center (“SVMSC”), which determines the availability of the recipients. Id. ¶ 33–34. Vuori discloses an SVM presence service that accepts, stores, and distributes presence information among clients. Id. ¶ 43. Presence information can include a status indicating that a user is online (available), offline (unavailable ), or other information. Id. ¶ 47. The SVMSC is able to check the availability of the recipient. Id. ¶ 50. If the recipient is available, the SVMSC sends the message 6 APPLE INC. v. UNILOC 2017 LLC

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