[00:00:32] Speaker 01: The next case is fuzzy sharp technology versus Intel 2014, 1261. [00:00:46] Speaker 01: And our first decision in this case is that we'd rather hear a sharp argument than a fuzzy argument. [00:00:52] Speaker 01: There's a good reason why the company is named fuzzy sharp. [00:00:57] Speaker 01: Right. [00:00:58] Speaker 01: Because it gives a fuzzy conclusion [00:01:01] Speaker 01: that's always safe. [00:01:05] Speaker 01: All right, please proceed. [00:01:06] Speaker 01: If it please the court, I'd like to say why we're here for Claim 67 and not all the other claims, why we're here in general. [00:01:18] Speaker 01: And then finally, what the heck is Claim 67? [00:01:22] Speaker 01: And that's important. [00:01:24] Speaker 01: There were a number of claims that initially were asserted, but [00:01:29] Speaker 01: When we looked at the decision of the judge, the district judge, and also Intel had made an inter-party proceeding in the US Patent and Trademark Office, and we looked at their arguments and their references, we thought it would be a good idea to acknowledge that the judge was right on some things, Intel was right on some things, and so we [00:01:59] Speaker 01: limited ourselves to claim 67. [00:02:04] Speaker 02: Mayo requires when the issue of eligibility... Does your decision not to address some of the other issues, does that affect your position on claim 67? [00:02:18] Speaker 01: Not at all, because they had at the parts of the claim, it was this or that. [00:02:28] Speaker 01: This was okay, but that was a problem. [00:02:31] Speaker 01: And there was no point of arguing those claims because we don't want to waste your time. [00:02:41] Speaker 01: Now, mail requires, when you're looking at eligibility, to look at the claims and to look at the claim, what's in the claim. [00:02:51] Speaker 01: And our problem is that the district judge took groups of claims and considered them as groups. [00:02:58] Speaker 01: except Claim 67 is so different from the other claims that were being considered by the judge. [00:03:05] Speaker 01: They were not, it was not considered separately. [00:03:08] Speaker 01: This case adds bounding volume to the previous claims, right? [00:03:17] Speaker 01: Yes, Your Honor. [00:03:17] Speaker 01: Bounding volumes. [00:03:19] Speaker 01: And isn't that just a concept, an idea, rather than something physical? [00:03:30] Speaker 01: It is theoretical and also, if I may, claim 67 is part of the stream of things to be done. [00:03:43] Speaker 01: If we can imagine, I'm a computer and we're presently in digital space and there's something here and there's something here and there's something here and there's something there. [00:03:55] Speaker 01: Okay, as a computer, I know those things are there, but I don't know [00:04:00] Speaker 01: if I'm going to create an image for a monitor, what's in front, what's behind, what can be seen, what can't be seen. [00:04:10] Speaker 01: And so there has to be a procedure. [00:04:13] Speaker 01: In 1991, the inventor, as a PhD student, realized that this is a problem because it took time for the computer to do it. [00:04:24] Speaker 01: Typically at that time, the computer [00:04:27] Speaker 01: would say from my point of view would shoot out a ray and if it hit a pixel and then another pixel, the pixel after the first one would be deemed hidden. [00:04:39] Speaker 01: And that was very effective, but very, very slow. [00:04:44] Speaker 01: And his idea was if you projected in digital space, these objects, the surfaces facing you, [00:04:56] Speaker 01: onto an imaginary screen, you could compare them. [00:05:00] Speaker 01: But because of different shapes of objects, this becomes complicated. [00:05:05] Speaker 01: So his idea, he said, well, I'll put a rectangular box around the surface that I'm interested in looking at, and I'll project it on my screen, and I'll compare. [00:05:17] Speaker 01: If nothing else is being projected on it, then I know everything in that box is visible. [00:05:24] Speaker 01: And if there's an interference in the box, it's not visible. [00:05:31] Speaker 01: Everything in the box is hidden. [00:05:35] Speaker 01: And this avoids weird renditions of, let's say, an arm sticking out of a wall. [00:05:44] Speaker 01: Because if you make an error as to what is either visible or either hidden, [00:05:53] Speaker 01: It's always completely correct as far as what you're looking at. [00:06:04] Speaker 01: Now, the claim itself, I have pointed out, is part of the stream. [00:06:13] Speaker 01: The claim starts out, it says a method of 3D computer graphics for processing the visibility of 3D surfaces. [00:06:21] Speaker 01: before a subsequent step of visibility and then goes out to say the method comprises and it refers back to the preamble said subsequent step of visibility computations. [00:06:36] Speaker 01: So either we look at it as a Judson's claim because it's an improvement of the system. [00:06:42] Speaker 01: It's not just some abstract manipulation of data. [00:06:46] Speaker 01: It's part of a whole stream of steps [00:06:49] Speaker 01: to ultimately render an image. [00:06:53] Speaker 01: Or, again, if we incorporate the preamble into it, we see again that it's part of a whole system. [00:07:02] Speaker 02: When I look at Claim 67, I see what you're talking about. [00:07:06] Speaker 02: I see the manipulation. [00:07:10] Speaker 02: Yes. [00:07:11] Speaker 02: But that's all I see. [00:07:16] Speaker 02: It doesn't go beyond that. [00:07:18] Speaker 02: doesn't go beyond saying, so now that I've manipulated this information, this is what I'm going to do, and this is how I'm going to do it. [00:07:27] Speaker 01: Well, Your Honor, the preamble says, these are steps to do before subsequent steps of visibility, which we know from the specification. [00:07:40] Speaker 01: And then they use the abounding volume and looking, and it says, [00:07:48] Speaker 01: said subsequent steps of visibility computations are from the perspective of the same viewpoint and it goes on additionally. [00:07:57] Speaker 01: So this is an improvement in something large. [00:08:03] Speaker 01: You didn't need to see all those other steps because they're known. [00:08:08] Speaker 01: It's a classic Jepson claim in which the patent office encourages this kind of claim because otherwise [00:08:17] Speaker 01: the patent examiner is confronted with a 10 page claim. [00:08:23] Speaker 02: So it does all this through some mathematical algorithms at the end. [00:08:28] Speaker 02: It takes the information and then it does what? [00:08:32] Speaker 01: Oh, and then in other steps. [00:08:35] Speaker 02: What are those other steps then in this claim? [00:08:40] Speaker 02: I'm sorry? [00:08:40] Speaker 02: What are those other steps in this claim? [00:08:44] Speaker 01: Well, they're not recorded here. [00:08:47] Speaker 01: as is in a classic Jepson claim, you don't put in all the steps. [00:08:52] Speaker 01: You can focus on that portion where you're making your improvement. [00:08:57] Speaker 01: And that's what was done here. [00:08:58] Speaker 01: Are you saying claim seven is a Jepson claim? [00:09:02] Speaker 01: Yes, Your Honor. [00:09:03] Speaker 01: I haven't practiced patent law for quite a while, but it doesn't look like a Jepson claim to me. [00:09:08] Speaker 01: In any event, the point is whether the bounding volume makes a difference. [00:09:13] Speaker 01: Well, the patent itself, [00:09:15] Speaker 01: It shows that the tests were conducted and it shows a significant improvement on how quickly things are rendered. [00:09:29] Speaker 01: We have up until now licensed many companies because in fact, this is used throughout the industry. [00:09:40] Speaker 01: So it has proved effective in the laboratory. [00:09:45] Speaker 01: And in practice. [00:09:50] Speaker 01: Anything further? [00:09:53] Speaker 01: I think I said what I wanted to say. [00:09:55] Speaker 01: All right. [00:09:56] Speaker 01: Well, let's have some rebuttal time for you. [00:09:59] Speaker 01: And we'll hear from Mr. Bagatelli. [00:10:06] Speaker 00: Thank you, Your Honor. [00:10:07] Speaker 00: Dan Bagatelli on behalf of the Appalooe Intel Corporation with me is my partner, Jim Valentine. [00:10:13] Speaker 00: The ALICE test [00:10:14] Speaker 00: is designed to distinguish between claims that are really focused on an abstract idea and claims that do more than that. [00:10:23] Speaker 00: They claim a concrete technological application. [00:10:25] Speaker 00: So Alice tells that you can't simply gussy up the claim with conventional computer hardware. [00:10:32] Speaker 00: You can't simply add conventional pre or post solution steps. [00:10:37] Speaker 00: And in this case, we have a claim that is directed to an abstract concept and nothing more. [00:10:44] Speaker 00: If we start with step one of the ALICE test, what is the core idea? [00:10:49] Speaker 00: Well, Fuzzy Sharp is focused on the bounding volume concept. [00:10:53] Speaker 00: Essentially, this is an approximation method. [00:10:56] Speaker 00: Instead of analyzing depth point by point, you take a bounding volume and you use that as a proxy for that portion of the service and you evaluate that instead. [00:11:07] Speaker 00: That is an abstract concept. [00:11:09] Speaker 00: It is just an approach that you might see in a textbook. [00:11:12] Speaker 00: It's fundamental building blocks. [00:11:14] Speaker 00: for further calculations. [00:11:16] Speaker 00: And that's, in fact, as Judge Raina pointed out, that's all that's done in this plane. [00:11:20] Speaker 00: It's a pre-calculation. [00:11:21] Speaker 00: Nothing more is done in the tangible physical realm of things and acts, as this court said in the FISA case. [00:11:30] Speaker 00: Even if you look at it as a series of ordered steps, it's just a geometrical manipulation of imaginary concepts. [00:11:37] Speaker 00: You've got the projection plane, you've got the grid cells, [00:11:43] Speaker 00: got the bounding volume, got the rejection of the bounding volume onto this, it's all imaginary. [00:11:49] Speaker 00: And then ultimately all you do is you calculate one distance versus another distance, and that's an input, perhaps, to other answers. [00:11:57] Speaker 02: The bounding volume is an imaginary boundary, right? [00:12:00] Speaker 02: I mean, there's no structure. [00:12:02] Speaker 02: There's no frame that actually is used to answer it. [00:12:07] Speaker 02: It's just an approximation of a locale. [00:12:11] Speaker 00: It's a proxy. [00:12:14] Speaker 00: prism around it, instead of using my jacket or my button, you put something around it and then you use that as a proxy to estimate. [00:12:22] Speaker 00: That's the abstract concept at a high level. [00:12:25] Speaker 00: Even at a detail level, every single step is done in the extract. [00:12:28] Speaker 00: So the question really is, is there anything in the claim that makes it more than that? [00:12:34] Speaker 00: You can't simply double down on the bounding volume. [00:12:36] Speaker 00: The bounding volume is abstract. [00:12:38] Speaker 00: What about the Z-buffer? [00:12:39] Speaker 00: The Z-buffer is just a memory. [00:12:41] Speaker 00: It is a standard computer hardware. [00:12:43] Speaker 00: There's nothing at all special about it. [00:12:46] Speaker 00: In fact, the basic algorithm could be done in your head or with pencil and paper. [00:12:50] Speaker 00: This plane does fall for a Z-buffer, but that is about as conventional computer hardware as you can imagine. [00:12:56] Speaker 00: It's not a specialized piece of equipment. [00:12:58] Speaker 00: It's just any kind of memory, and that's in the court's claim construction. [00:13:02] Speaker 00: So what else have we talked about? [00:13:04] Speaker 00: Well, we've got the preamble, and it does suggest that there might be some further calculations. [00:13:10] Speaker 00: And even if we accept that as a premise, it's conceded that those calculations are simply further post-solution activity that are entirely conventional. [00:13:19] Speaker 00: There's nothing new there whatsoever. [00:13:21] Speaker 00: So the claim is really to the abstract idea. [00:13:26] Speaker 00: And ultimately, all you've got is one set of calculations at most before another set of calculations, neither of which produces anything in the real world. [00:13:33] Speaker 00: And as I think this court put it in Digitech, [00:13:36] Speaker 00: Without additional limitations, a process that employs mathematical algorithms to manipulate existing information to generate additional information is not patent-eligible. [00:13:45] Speaker 00: That's this case. [00:13:47] Speaker 00: It's abstract at every level, and there's nothing that converts it into more than that. [00:13:53] Speaker 00: So we submit that this report correctly invalidated the claim. [00:13:57] Speaker 01: Thank you, Mr. Bagatell. [00:13:59] Speaker 01: Mr. Fink has some minutes if he wishes to use them. [00:14:04] Speaker 01: Say again, I'm sorry. [00:14:05] Speaker 01: You have some rebuttal time if you wish to use them. [00:14:08] Speaker 01: Yes, Your Honor, I do. [00:14:13] Speaker 01: Claim 67 is not a business claim, not a theoretical manipulation, as suggested with respect to Digitech. [00:14:26] Speaker 01: It requires the use of a computer. [00:14:31] Speaker 01: It cannot be done mentally. [00:14:32] Speaker 01: It's an improvement in the process of using the computer for the calculation. [00:14:41] Speaker 01: And as I have said, if you don't want to accept that it's a Jepson claim, please consider the fact that the claim steps incorporate the preamble and the preamble says, [00:14:56] Speaker 01: It's part of a whole. [00:14:59] Speaker 01: And it's not of some law of nature that's being protected. [00:15:05] Speaker 01: People can, if they want to brute force and create images, they're free to do it. [00:15:12] Speaker 01: They don't have to use this. [00:15:15] Speaker 01: So we're not preempting anything. [00:15:22] Speaker 01: Thank you, Your Honor. [00:15:23] Speaker 01: Thank you. [00:15:24] Speaker 01: We'll take the case under advisement. [00:15:26] Speaker 01: That closes today's arguments.