PGS GEOPHYSICAL AS v. IANCU

Procedural entryThis page is a short order in PGS GEOPHYSICAL AS v. IANCU. Read the opinion of the Court — 891 F.3d 1354
Court of Appeals for the Federal Circuit·Decided June 18, 2018·No. 17-1582·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

PGS GEOPHYSICAL AS, Appellant

v.

ANDREI IANCU, UNDER SECRETARY OF COMMERCE FOR INTELLECTUAL PROPERTY AND DIRECTOR OF THE UNITED STATES PATENT AND TRADEMARK OFFICE, Intervenor ______________________

2017-1582 ______________________

Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2015- 00313. ______________________

Decided: June 18, 2018 ______________________

JESSAMYN SHELI BERNIKER, Williams & Connolly LLP, Washington, DC, argued for appellant. Also represented by DAVID I. BERL, DAVID M. KRINSKY, JAMES MATTHEW RICE, CHRISTOPHER ALAN SUAREZ.

THOMAS W. KRAUSE, Office of the Solicitor, United States Patent and Trademark Office, Alexandria, VA, 2 PGS GEOPHYSICAL AS v. IANCU

argued for intervenor. Also represented by NATHAN K. KELLEY, MONICA BARNES LATEEF, MEREDITH HOPE SCHOENFELD. ______________________

Before LOURIE, CLEVENGER, and REYNA, Circuit Judges. CLEVENGER, Circuit Judge. PGS Geophysical AS (“PGS”) appeals the final written decisions of the Patent Trial and Appeal Board (“the Board”) in an inter partes review (“IPR”) proceeding instituted by WesternGeco LLC (“WesternGeco”). 1 In its first decision, the Board invalidated claims 1, 4, 10 and 11 of U.S. Patent No. 6,026,059 (“’059 Patent”) as being anticipated or obvious in light of the prior art. Further, after granting WesternGeco’s request for rehearing, a majority of the Board invalidated dependent claim 2 by associating its limitation to one step in independent claim 1 (which was taught by the prior art), over PGS’s argu- ments that the limitation applied to a different step in claim 1 (which was not taught by the prior art). We agree with the Board as to the invalidity of claims 1, 4, 10 and 11, but disagree with the majority of the Board as to claim 2.

1 While PGS’s appeal before this court was pending, the parties settled and WesternGeco withdrew from the appeal. See WesternGeco’s Unopposed Mot. to Withdraw at 1 (Aug. 5, 2017), ECF No. 25; Order at 1–2 (Aug. 7, 2017), ECF No. 26. The United States Patent and Trademark Office subsequently intervened pursuant to 35 U.S.C. § 143 and properly became the party-at-interest in this appeal. See Notice of Intervention by the U.S. Pat. & Trademark Off. at 1 (Aug. 7, 2017), ECF No. 27; Knowles Elecs. LLC v. Iancu, 886 F.3d 1369, 1371 (Fed. Cir. 2018). PGS GEOPHYSICAL AS v. IANCU 3

BACKGROUND The ’059 Patent concerns three-dimensional seismic surveying and processing of the resultant data. Seismic survey data is generated and acquired using source- receiver pairs; a series of “sources” are physically placed in an array relative to a series of “receivers.” The sources emit a “shot” via vibrations or explosions, which travels through the target geology and bounces off geological features before returning to the receivers. Figure 1 below shows a representative seismic survey diagram and “generalized waveform response”—known as a “trace”— picked up by the receiver. See J.A. 144. When a shot bounces off of a geological feature, it produces a spike in the trace signal’s amplitude relative to the background noise. Data processors then collect these trace signals and utilize a variety of techniques to increase the resolu- tion and accuracy of the survey, in essence turning dis- crete signal spikes into subsurface maps.

One metric by which data processors measure the resolution of a survey is through the signal-to-noise ratio—the ratio of signal strength (i.e. signal carrying relevant information) to background noise. For three- 4 PGS GEOPHYSICAL AS v. IANCU

dimensional seismic surveys, data processors often increase this ratio using a process called binning, which groups traces together by some shared feature. For instance, traces may be grouped into common midpoint bins (CMBs)—containing traces that have the same lateral midpoint between their source-receiver pairs—or common reflection point bins (CRPs)—containing traces that have the same subsurface reflection point between their source-receiver pairs. CMBs are generally used for simple sub-surface geometries, whereas CRPs may be used for more complex geometries. Each bin has a particular “fold,” which is the number of traces within the bin. Each trace within the bin also has a particular “offset”—the distance between the source and receiver that produced the trace—and “azimuth”—the angle between the offset line and some reference axis. The figure below depicts an overhead view of a bin, where each line passing through the reference point at “2” represents a single trace. See J.A. 642. By “stacking” (i.e. summing) numerous traces having a common reference point (i.e. midpoint or reflection point), the amplitude of the signal becomes more pronounced relative to the amplitude of the noise, thereby increasing the signal-to- noise ratio and overall resolution of the survey. PGS GEOPHYSICAL AS v. IANCU 5

However, bins generally contain non-uniform offset and azimuth distributions, as shown in the figure. In other words, traces may be more concentrated at certain offsets or azimuths, rather than evenly distributed about the reference point. In the figure, bin 2 contains numer- ous traces from mid-distance source-receiver pairs, but far fewer traces from both the nearest and furthest source- receiver pairs. According to the ’059 Patent, these non- uniform distributions negatively impact the analysis of the stacked trace data. In particular, variations that arise when normalizing 2 the amplitude of each trace subsequently impact the amplitudes of the stacked traces.

2 In seismic surveying, shots lose energy as they propagate through the target geology. This means that geological features further from the source produce weak- er signal spikes relative to the background noise. Ampli- tude normalization is a process that accounts for this energy loss by adjusting the amplitude of identifiable PGS GEOPHYSICAL AS v. IANCU 7

two traces. The process of generating sub-bins with the same number of traces ensures each bin has sufficient offset and azimuth diversity to increase the signal-to- noise ratio, and that those traces are uniformly distribut- ed within each bin so as to avoid problems caused by amplitude normalization. WesternGeco filed a petition requesting an IPR of claims 1–12 of the ’059 Patent. The Board instituted the IPR only as to claims 1-5, 10 and 11. Although the Board erred in failing to institute the IPR on every claim West- ernGeco challenged, SAS Inst., Inc. v. Iancu, 138 S. Ct. 1348, 1354 (2018), neither the Appellant nor the Interve- nor complain about this failure, PGS Geophysical AS v. Iancu, Nos. 16-2470, 16-2472, 16-2474, slip op. at 11–13, 2018 WL 2727663 at *5–6 (Fed. Cir. June 7, 2018) (noting that the Board’s partial institution decision is a waivable error). Claim 5 was upheld, and is not implicated in this appeal. Independent claim 1 of the ’059 Patent discloses a method of generating bins with regularized sub-bins. The relevant claims at issue read as follows: 1. A process for generating a bin of common mid- point traces from a three dimensional seismic survey data set, each of the traces having a shot location and a receiver location associated therewith, the process comprising: gathering from the data a plurality of traces having a common reference point . . . ; assigning a coordinate set to a plurality of traces in the common reference point bin, wherein the coordinates are associated

particular bin have the same number of traces contained therein. The parties do not challenge this construction.

Free access — add to your briefcase to read the full text and ask questions with AI

PGS GEOPHYSICAL AS v. IANCU, (Fed. Cir. 2018).

PGS GEOPHYSICAL AS v. IANCU (PGS GEOPHYSICAL AS v. IANCU) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Exergen Corp. v. Wal-Mart Stores, Inc.
575 F.3d 1312 (Federal Circuit, 2009)
Helmsderfer v. Bobrick Washroom Equipment, Inc.
527 F.3d 1379 (Federal Circuit, 2008)
In Re Bayer Aktiengesellschaft
488 F.3d 960 (Federal Circuit, 2007)
In Re Robert J. Gartside and Richard C. Norton
203 F.3d 1305 (Federal Circuit, 2000)
Samuel Gart v. Logitech, Inc.
254 F.3d 1334 (Federal Circuit, 2001)
Arlington Industries, Inc. v. Bridgeport Fittings, Inc.
345 F.3d 1318 (Federal Circuit, 2003)
In Re Wilhelm Elsner. In Re Keith W. Zary
381 F.3d 1125 (Federal Circuit, 2004)
In Re Mouttet
686 F.3d 1322 (Federal Circuit, 2012)
In Re Cuozzo Speed Technologies, LLC
793 F.3d 1268 (Federal Circuit, 2015)
Straight Path Ip Group, Inc. v. Sipnet Eu S.R.O.
806 F.3d 1356 (Federal Circuit, 2015)
Trivascular, Inc. v. Samuels
812 F.3d 1056 (Federal Circuit, 2016)
Blue Calypso, LLC. v. Groupon, Inc.
815 F.3d 1331 (Federal Circuit, 2016)
Cuozzo Speed Technologies, LLC v. Lee
579 U.S. 261 (Supreme Court, 2016)
In Re: Affinity Labs of Texas, LLC
856 F.3d 902 (Federal Circuit, 2017)
Knowles Electronics LLC v. Iancu
886 F.3d 1369 (Federal Circuit, 2018)
SAS Institute Inc. v. Iancu
584 U.S. 357 (Supreme Court, 2018)