Microsoft Corporation v. Biscotti, Inc.
MICROSOFT CORPORATION, Appellant v. BISCOTTI, INC., Appellee
Attorneys
Constantine L. Trela, Jr., Sidley Austin LLP, Chicago, IL, argued for appellant. Also represented by Richard Alan Ceder-oth, Douglas Lewis; Joshua John Fougere, Joseph A. Micallef, Washington, DC., John C. OâQuinn, Kirkland & Ellis LLP, Washington, DC, argued for appellee. Also represented by William H. Burgess; Adam R. Alper, San Francisco, CA; Michael W. De Vries, Los Angeles, CA; Amanda J. Hollis, Chicago, IL.
Full Opinion (html_with_citations)
Dissenting opinion filed by Circuit Judge Newman.
Microsoft Corporation (âMicrosoftâ) appeals from decisions of the Patent Trial and Appeal Board (âBoardâ) in three separate inter partes review (âIPRâ) proceedings, in which the Board found that Microsoft failed to show by a preponderance of the evidence that the challenged claims of U.S. Patent No. 8,144,182 (â â182 patentâ) were anticipated or obvious. See Microsoft Corp. v. Biscotti Inc., No. IPR2014-01457, 2016 WL 1084760, 2016 Pat. App. LEXIS 7571 (P.T.A.B. Mar. 17, 2016); Microsoft Corp. v. Biscotti Inc., No. IPR2014-01458, 2016 WL 1085103, 2016 Pat. App. LEXIS 7572 (P.T.A.B. Mar. 17, 2016); Microsoft Corp. v. Biscotti Inc., No. IPR2014-01459, 2016 WL 1084802, 2016 Pat. App. LEXIS 7573 (P.T.A.B. Mar. 17, 2016). Because the Boardâs decisions are supported by substantial evidence and do not rely on an erroneous claim construction, we affirm.
I. Background
A. The â182 Patent
The 182 patent is entitled âReal Time Video Communications System.â The 182 patent discloses âtools and techniques for providing video calling solutionsâ and relates to real-time video conferencing where two or more users communicate, over a network, in a conference that includes video and audio of each participant. 182 patent, Abstract.
The patent explains that there are various video calling technologies on the market, but it states that âthere have been no satisfactory video calling options for consumers.â Id. at col. 1 11. 42-46. The 182 patent notes three different types of video calling systems available at the time of this patent: (1) professional-grade systems that require complex hardware and are expensive and difficult to use; (2) personal computer systems, such as web cams and video chat software like Skype, that have âfar from optimalâ call quality, require the use of a personal computer, and use confusing and error-prone software and hardware; and (3) dedicated video phones that are expensive, require multiple phones to communicate with others, and fail to provide adequate call quality because they use small screens and operate over a standard âplain old telephone system.â Id. at col. 11. 46-col. 21. 4. The â182 patent claims that it provides a system that âsolves these and other deficiencies found in current products.â M at col. 211. 5-6.
The patented video communication system includes components such as video communication devices, the internet, video sources, display devices, and set-top boxes. Id. at col. 51. 40-col. 61.13. The first video communication device captures a video or audio stream from a video source. Id. at col. 5 11. 49-56. The second video communication device similarly captures a video or audio stream from a second video source. Id. The first and second video communication devices can output the video or audio stream they receive from their respective video source to the display devices. Id. at col. 511. 56-62.
Each video communication device also is connected to a set-top box. Id. at col. 5 11. 62-65. This allows the video communication device to receive an audiovisual stream from the set-top box and transmit it to the display device. Id. at col. 5 1. 65-col. 61.1.
The video communication devices can send their video or audio streams to one another across the internet. Id. at col. 5 11. 42-44; id. col. 6 11. 1-13. For example, the first video communication device can receive a video or audio stream over the internet from the second video communication device. Id. The first video communication device then can display the video or audio stream from the second video communication device using its display device. Id. The second video communication device similarly can receive a video or audio stream over the internet from the first video communication device. Id. The second video communication device then can display the video or audio stream from the first video communication device using its display device. Id. This exchange might happen as part of a video call between the two video communication devices.
In some embodiments, the video communication devices can simultaneously display the respective audiovisual streams from the respective set-top boxes so that the display device shows the video or audio stream (from either video communication device) and the audiovisual stream from the set-top box at the .same time. Id. at col. 6 11. 14-18. In this type of situation, the video or audio stream might be sent across the internet to another video communication device, but the audiovisual stream from the set-top box would not be sent over the internet to the other video communication device. This functionality would allow a user to participate in a video call while also watching television at the same time. Id. at col. 611.18-20.
Figure 4 of the patent shows that the video communication device includes an input video interface and an input audio interface through which the video communication device can receive video and audio from a set-top has.. Id. at col. 10 11. 19-22, 48-52. The video communication device also includes an output video interface and an output audio interface through which the video communication device can transmit video and audio to a display device. Id. at col. 10 11. 19-22, 59-67. The video communication device has an audio capture device and a video capture device through which it can receive audio and video; for example, these features might include a microphone and a camera to capture speech and footage of a video call participant. Id. at col. 11 11. 3-12. The video communication device also includes a network interface that allows a connection to a network, which can be used to communicate with a server or another video communication device. Id. at col. 11 11. 25-31.
The video communication device also includes a processor, codecs, and a storage medium. Id. at col. 9 11. 64-66, col. 10 11. 11-18. The processor generally controls the operation of the video communication device. Id. at col. 9 11. 64-66. The codecs provide the video communication device with encoding and decoding functionality. Id. at col. 1011.11-14. The storage medium is âencoded with instructions executable by the processor, can provide working memory for execution of those instructions, [and] can be used to cache and/or buffer media streams, and/or the like.â Id. at col. 10 11. 14-18.
The â182 patent has four independent claims, but only two are relevant to these appealsâclaims 6. and 69. Independent claim 6 reads:
A video communication system, comprising:
a first video communication device, comprising: â˘
[A] a video input interface to receive video input from a set-top box;
[B] ah audio input interface to receive audio input from the set-top box;
[C] a video output interface to provide, video output to a video display device;
[D] an audio output interface to provide audio output to an audio receiver;
[E] a video capture device to capture video;
[P] an audio capture device to capture audio;
[G] a network interface;
[H] at least one processor; and
[I] a storage medium in communication with the at least one processor, the storage medium having encoded thereon a set of instructions executable by the at least one processor to control operation of the first video communication device, the set of instructions comprising:
[i] instructions, for controlling the video capture device to capture a captured video stream;
[ii] instructions for controlling the audio capture device to capture a captured audio stream;
[iii] instructions for encoding the captured video stream and the captured audio' stream to produce a series of data packets; and
[iv] ' instructions for transmitting the series of data packets on the network interface for reception by a second video communication device.
Id. at col. 321. 62-col. 33 1. 25. Claim 6 and certain claims depending from claim 6 were at issue in the first two IPRs.
Independent claim 69 reads:
A method of providing video calling using a first video communication device comprising an audio capture device, a video capture device, a network interface, an audiovisual input interface, and an audiovisual output interface, the method comprising:
[A] receiving, on the audiovisual input interface, a set-top box audiovisual stream from a set-top box, the set-top box audiovisual stream comprising a set-top box video stream and a set-top box audio stream;
[B] receiving, on the network interface, a remote audiovisual stream via a network connection with a second video communication device, the remote audiovisual stream comprising a remote audio stream and a remote video stream;
[C] transmitting, on the audiovisual output interface, a consolidated output video stream comprising at least a portion of the remote video stream and a consolidated output audio stream comprising at least the remote audio stream;
[D] capturing a captured video stream with the video capture device;
[E] capturing a captured audio stream with the audio capture device;
[F] encoding the captured video stream and the captured audio stream to produce a series of data packets; and
[G] transmitting the series of data packets on the network interface for reception by the second video communication device.
Id. at col. 37 1. 63-col. 38 1. 23. Claim 69 and certain claims depending from claim 69 were at issue in the third IPR.
B. The Kenoyer Reference
U.S. Patent No. 7,907,164 (âKenoyerâ), entitled âIntegrated Videoconferencing System,â was filed on April 17, 2006, and issued on March 15, 2011. Its invention ârelates generally to conferencing and, more specifically, to videoconferencing.â Kenoyer, col. 1 11. 22-23. The reference explains that videoconferencing allows âtwo or more participants at remote locations to communicate using both video and audio.â Id. at col. 111.25-27.
Kenoyer discloses a âmulti-component videoconferencing systemâ that âmay include a camera, microphones, speakers, and a codec possibly used in conjunction with a computer system.â Id. at col. 1 11. 43-47. Kenoyer explains that it is âsusceptible to various modifications and alternative forms.â Id. at col. 3 11. 17-18. The systemâs video and audio conferencing capabilities âmay be implemented over various types of networked devices.â Id. at col. 4 11. 15-16. An embodiment of the invention implemented over a network is provided in Figure 1:
[[Image here]]
Id. at Fig. 1. The video conferencing system includes a network (101) with endpoints (103A-103H), gateways (130A and 130B), a service provider (108), a public switched telephone network (120), conference units (105A-105D), and telephones from a âplain old telephone systemâ (106A and 106B). Id. at col. 3 1. 64-col. 4 1. 4.
The endpoints (103A-103H) can be audio or videoconferencing systems. Id. at col. 3 11. 66-67. Kenoyer explains that certain endpoints (103D-103H) may include audio and video communication capabilities to create video conferencing capability. Id. at col. 4 11. 35-46. These endpoints also can include or be coupled to various audio devices, such as microphones, audio input devices, speakers, and audio output devices. Id. at col. 4 11. 35-39. And these endpoints can include or be coupled to various video devices, such as monitors, projectors, televisions, video output devices, or video input devices. Id. at col. 4 11. 44-46. The endpoints âmay comprise various ports for coupling to one or more devices (e.g., audio devices, video devices, etc.) and/or to one or more networks.â Id. at col. 411. 47-49.
Figure 3 of Kenoyer shows a participant location with a multi-component video conferencing system:
[[Image here]]
F/G.3
Id. at Fig. 3. Kenoyer explains that a participant can use the multi-component video conferencing system (300) to communicate with other participants in a video conference. Id. at col. 6 11. 1-4. The multi-component video conferencing system (300) includes the following components: a camera (303) with a camera base (363) and lens portion (375); a display (305); a keyboard (307); a codec (309); speakers (311a and 311b) with speaker attachments (371a and 371b); microphones (319); a network connection (351); a computer system (355); a remote control (361); and a remote sensor (365). Id. at col. 6 1. 4-col. 8 1. 49. A participant can use the camera to capture video, the microphone to capture audio while using the display to provide video from a local or remote conference participant, and the speakers to produce audio from remote conference participants. Id. at col. 611. 4-9.
Figure 5 of Kenoyer shows a side view of an embodiment of a codec:
[[Image here]]
FIG. 5
Id. at Fig. 5. Kenoyer explains that the codec can include multiple ports on one or more sides of the codec. Id. at col. 811. 57-60. As shown in Figure 5, the codec can have ports for a camera, a microphone, a speaker, video input, video output, and an IP connector. Id. at col. 8 1. 66-col. 9 1. 17.
Aside from Figure 5, Kenoyer includes other teachings regarding the codec. It states that âa codec (which may mean short [sic] for âcompressor/decompressorâ) may comprise any system and/or method for encoding and/or decoding (e.g., compressing and decompressing) data ⢠(e.g., audio and/or video data).â Id. at col. 4 1. 67-col. 5 1. 4. In different embodiments, the codec âmay be implemented in software, hardware, or a combination of both.â Id. at col. 5 11. 9-10. The codec can be incorporated into other components, such as a camera base or a set-top box. Id. at col. 1 11. 56-63. The codec also can be separated out to âan independent housing that is coupled to the set-top box,â which allows the codec to âact as a pass-through for the regular programming/games when a conference is not being heldâ or to âdisplay at least a portion of the programming/games along with video for the video-conference.â Id. at col. 1011.25-30.
Figure 22 of Kenoyer shows a method of video conferencing through the multi-com-ponent video conferencing system:
[[Image here]]
Id. at Fig. 22. Kenoyerâs description of Figure 22 notes that, âin various embodiments of the methods described below, one or more of the elements described may be performed concurrently, in a different order than shown, or may be omitted entirely. Other additional elements may also be performed as desired.â Id. at col. 1511. 2-7. Kenoyer then writes out the steps shown in Figure 22. Id. at col. 1511. 8-20.
After writing out the steps shown in Figure 22, Kenoyer states, â[e]mbodiments of a subset or all (and portions or all) of the above may be implemented by program instructions stored in a memory medium or carrier medium and executed by a processor.â Id. at col. 15 11. 21-24. Kenoyer begins the next paragraph by stating, âÂĄTjn some embodiments, a computer system at a respective participant location may include a memory medium(s) on .which one or more computer programs or software components according to one embodiment of the present invention may be stored.â Id. at col. 15 11. 46-50. The next paragraph states, â[f|urther modifications and alternative embodiments of various aspects of the invention may be apparent to those skilled in the art in view of this description.â Id. at col. 15 11. 55-57. It also states that â[e]lements and materials may be substituted for those illustrated and described herein, parts and processes may be reversed, and certain features of the invention may be utilized independently, all as would be apparent to one skilled in the art after having the benefit of this description of the invention.â Id. at col. 15 11. 62-67.
C. Procedural History
In November 2018, Biscotti, Inc. (âBis-cottiâ) sued Microsoft in the U.S. District Court for the Eastern District of Texas alleging that Microsoft infringed the â182 patent. Microsoft filed three separate IPRs in September 2014 challenging certain claims of the 182 patent on anticipation and obviousness grounds. As relevant here, the Board instituted review of claims 6 and 69 on anticipation grounds, and of claims that depend from claims 6 and 69 on anticipation and obviousness grounds. The first two IPRs, IPR2014-01457 (â57 IPRâ) and IPR2014-01458 (â58 IPRâ), focused on independent claim 6 and claims that depend from claim 6. The third IPR, IPR2014-01459 (â59 IPRâ), focused on independent claim 69 and claims that depend from claim 69. In each, IPR, the Board ultimately found that Microsoft failed to prove by a preponderance of the evidence that Kenoyer anticipated the challenged claims or rendered those claims obvious.
1.. The 57 IPR
The Board began its analysis in the 57 IPR by discussing Microsoftâs assertion that Kenoyer anticipated claim 6 of the 182 patent. 57 IPR, at *-, 2016 Pat. App. LEXIS 7571, at *14-19. In support of its argument, Microsoft asserted that the âstorage mediumâ limitation of claim 6 was disclosed by the following language from Kenoyerâs specification: â[e]mbodiments of a subset or all (and portions or all) of the above' may be implemented by program instructions stored in a memory medium or carrier medium and executed by a processor.â Id. at *6, 2016 Pat. App. LEXIS 7571 at *18-*19 (citing Kenoyer, col. 15 11. 21-24). Microsoftâs expert, Dr. Houh, testified that this language âdescribes using computer programs to implement the codec and other functionality described in that patent.â Id. at *6, 2016 Pat. App. LEXIS 7571 at *19 (citing J.A. 2288 Âś 100). Regarding the specific âinstructionsâ sub-limitations, Microsoft and its expert argued that the specification, at various places, disclosed' the functions described by the instructions. Id.
Biscotti contended that the language cited by Microsoft referred only to the description of Figure 22, which immediately preceded the language on which Microsoft relied, rather than all of the disclosures made throughout the Kenoyer specification. See id. at *-, 2016 Pat. App. LEXIS 7571, at *19-20. Biscotti and its expert, Dr. Bovik, argued that the language could not apply to all prior disclosures in the specification because the specification discussed certain components, such as cooling fans and handles to carry equipment, that could not have been implemented in a storage medium. Id. at *-, 2016 Pat. App. LEXIS 7571, at *21. Biscot-ti argued that the more natural interpretation of the language was that it applied only to the discussion of Figure 22. Id. at *-, 2016 Pat. App. LEXIS 7571, at *20. Biscotti asserted that the languageâs application was further supported by another portion of the description of Figure 22, which referred to the various âembodiments of the methods described below.â Id. (quoting Kenoyer, col. 15 11. 3-4) (emphasis added). This language applied to the textual description of the steps laid out in Figure 22, and Biscotti argued that the similar language relied upon by Microsoftâwhich stated â[e]mbodiments of a subset or all (and portions or all) of the above,â Kenoyer, col. 15 11. 21-22 (emphasis added)â naturally applied to the description of Figure 22 as well. 57IPR, at *-, 2016 Pat. App. LEXIS 7571, at *20.
The Board found that Microsoft failed to prove that Kenoyerâs disclosure anticipated the âstorage mediumâ and âinstructionsâ limitations of claim 6 of the â182 patent. Id at *-, 2016 Pat. App. LEXIS 7571, at *24-25. The Board noted that Microsoftâs argument regarding the âstorage mediumâ and âinstructionsâ limitations relied on an interpretation of the disputed language of column 15 âreferring to and tying together a number of disclosures in various portions throughout Ke-noyer regarding functions that may be performed in various embodiments.â Id. at *8, 2016 Pat. App. LEXIS 7571, at *24 (citing J.A. 176-79). The Board found that âKenoyerâs program-instructions sentence does not make sense as a disclosure blanketing all of the preceding 34 pages,â and that the sentence âdoes not refer back specifically to the various other disclosures cited by [Microsoft].â Id. at *9, 2016 Pat. App. LEXIS 7571, at *26. Instead, the Board found that Biscottiâs argument and evidence regarding the meaning of the sentence was âat least as persuasive as [Microsoftâs] argument and evidenceâ such that Microsoft had failed to meet its burden of proof. Id. at *9, 2016 Pat. App. LEXIS 7571, at *27.
The Board further noted that it âmakes sense that a videoconferencing method would lend itself to implementation with program instructions,â and it âmakes sense that the program-instructions sentence would refer specifically to the videoconferencing method disclosedâ in the discussion of Figure 22. Id. at *9, 2016 Pat. App. LEXIS 7571, at *27. The Board therefore âagree[d] with [Biscotti]â that Kenoyerâs reference to âembodiments of the methods described belowâ and â[e]mbodiments of a subset or all (and portions or all) of the aboveâ both refer to the description of Figure 22. Id. at *-, 2016 Pat. App. LEXIS 7571, at *27-28. The Board accordingly found that Microsoft had not âdemonstrated by a preponderance of the evidence that Kenoyerâs program-instructions sentence and various other cited portions disclose the claimed âstorage mediumâ with its four specific âinstructions for,â or that a person of ordinary skill in the art would âat once envisageâ a storage medium with the specific instructions claimed.â Id. at *10, 2016 Pat. App. LEXIS 7571, at *28-29.
The Board explained that Kenoyerâs alleged disclosures of a storage medium with instructions in accordance with the limitations of claim 6 âare unrelated to each other in [the] disclosure.â Id. at *10, 2016 Pat. App. LEXIS 7571, at *29. The Board compared this to a disclosure that amounted to âmultiple, distinct teachings that the artisan might somehow combine to achieve the claimed invention,â which is insufficient to anticipate. Id. at *-, 2016 Pat. App. LEXIS 7571, at *29-30 (citing Net MoneyIN, Inc. v. VeriSign, Inc., 545 F.3d 1359, 1369 (Fed. Cir. 2008) (internal quotation marks omitted)). It also found that Microsoft failed to provide âpersuasive evidence that the disclosure would be understood by one of ordinary skill in the art to mean that the storage medium with program instructions and the functions performed in the various embodiments are used together in Kenoyer.â Id. at *10, 2016 Pat. App. LEXIS 7571, at *30. The Board therefore found that Kenoyer did not anticipate claim 6 of the 182 patent. Id.
Because claims 24-26, 28, 29, 31, 37, and 41 all depended on claim 6, the Board found that Microsoft failed to prove by a preponderance of the evidence that Kenoyer anticipated the claims. Id. at *â;â â-, 2016 Pat. App. LEXIS 7571, at *32-33. '
Turning to the obviousness arguments for claims 36 and 37, the Board found that Microsoft, failed to prove obviousness over Kenoyer and other references. Microsoft asserted that Kenoyer discloses the âstorage mediumâ and . âinstructionsâ limitations, but the Board concluded that Microsoft failed to prove that Kenoyer taught the limitations, as discussed in the anticipation analysis. Id. at *â:-, 20,16 Pat. App, LEXIS 7571, at *33-34. Microsoft did not separately address whether Kenoyer rendered the limitations of claim 6 obvious based on the teachings located in different parts of the specification, so Microsoft failed to prove obviousness for claims 36 and 37. Id. at *-, 2016 Pat. App. LEXIS 7571, at *34.
, One of the judges on the Board dissented from the Boardâs conclusions. The dissent argued that the majority erred when applying the law regarding § 102 to the teachings of Kenoyer because it failed to âtake into account not only specific teachings of the reference but also the inferences which one skilled in the art would reasonably be expected to draw therefrom.â Id. at *13, 2016 Pat. App. LEXIS 7571, at *39 (Cherry, A.P.J., dissenting) (citing In re Preda, 401 F.2d 825, 826 (CCPA 1968)). âEven assuming that Ke-noyer did not disclose expressly the use of program instructions, I am persuaded by the evidence presented that a person of â ordinary skill would recognize its description as disclosing the use of program instructions (software) to enable the performance of these functions.â Id. at *13, 2016 Pat. App. LEXIS 7571, at *40 (citing J.A. 8422-23 Âś 57; In re Alappat, 33 F.3d 1526, 1583 (Fed. Cir. 1994) (en banc) (Rad-er, J., concurring)). The dissent also asserted that the use of âembodimentsâ throughout Kenoyerâs specification suggested that the disputed language was not as limited as Biscotti had argued. Id. at *-, 2016 Pat. App. LEXIS 7571, at *41-42.
The majority responded to the- dissent by stating that Microsoft,did not make the arguments relied upon, by the dissent and that, even were they to agree with the dissentâs reasoning, Microsoft had not met its burden of proving anticipation. Id. at *-, 2016 Pat. App. LEXIS 7571, at *31-32.
2. The 58 IPR
Because the Board primarily considered claim 6 in the 58 IPR, as it did in the 57 IPR, the. final written decision in the 58 IPR is very similar to the decision in the 57 IPR. Based on the same reasoning and underlying findings, the Board found that Kenoyer did not anticipate claim 6 of the â182 patent. 58 IPR, at *-, 2016 Pat. App. LEXIS 7572, at *25-33. The Board similarly found that Microsoft failed to prove Kenoyer anticipated the dependent claims. Id. at *-, 2016 Pat. App. LEXIS 7572, at *33. The same administrative judge dissented from the Boardâs decision in the 58 IPR, and the dissent, like the majority, is similar to the dissent issued in the 57 IPR.
In addressing obviousness, the Board again performed a similar analysis to that performed in the final written decision for the 57 IPR. The Board found that Microsoft failed to prove that Kenoyer taught the âstorage mediumâ and âinstructionsâ limitations, of claim 6 and failed to provide additional argument as to how Kenoyer might render the limitation obvious when the anticipation challenge failed, so Microsoft failed to meet its burden of providing obviousness for these dependent claims. Id. at *-, 2016 Pat. App. LEXIS 7572, at *33-35.
3. The 59 IPR
The Board began its analysis in the 59 IPR by discussing Microsoftâs assertion that Kenoyer anticipated claim 69 of the â182 patent. Microsoft argued that Ke-noyer disclosed receiving audio and video from the set-top box using an audiovisual input interface. 59 IPR, at *-, 2016 Pat. App. LEXIS 7573, at *17-18. Microsoft provided two statements to demonstrate disclosure: (1) â[tjhe codecâs audio and video processing may be incorporated in the set-top box and/or may be distributed (e.g., to other devices through a cable coupling the devices to the set-top box)â; and (2) â[t]he codec may also be in an independent housing that is coupled to the set-top box 705. The codec may act as a pass-through for the regular programming/games when a conference is not being heldâ (the âpass-through clauseâ). Id. The Board found, however,- that Kenoyer does not expressly disclose an interface in either statement. Id. at *-, 2016 Pat. App. LEXIS 7573, at *18. The Board further found that Microsoft did not explain any basis for finding that a person of ordinary skill in the art (âPOSAâ) would understand the two statements as disclosing an âinterface.â Id. at *-r-, 2016 Pat. App. LEXIS 7573, at *18-19. The Board noted that the statements could inherently disclose the. claimed interface, but Microsoft failed to provide, as inheren-cy requires, any evidence why a POSA would understand the statements as necessarily disclosing the claimed interface. Id. at *-, 2016 Pat. App. LEXIS 7573, at *19.
Rather than rely on inherency, Microsoft asserted that Kenoyerâs pass-through clause and the interface in Figure 5- provided adequate disclosure. Id. at *- -2016 Pat. App. LEXIS 7573, at *19-20. Microsoft argued that the pass-through clause disclosed receiving audio and video, and Figure 5 disclosed an audiovisual input interface on which the audio and video are actually received. Id. Dr. Houh provided that a POSA would âconsider the import of Kenoyerâs disclosure of connecting the set-top box to the codec together with Kenoyerâs disclosure a codec [sic] with audio and video input interfaces.â Id. at *7, 2016 Pat. App. LEXIS 7573, at *21 (emphasis omitted). ' Dr. Houh' further provided that â âsuch persons would have interpreted Ke-noyerâs disclosure of a codec separate from and coupled to a set-top box as meaning that the set-top box would be coupled to the codec using the interfaces that Kenoyer discloses are included in the codecâ because â[s]uch persons would understand that each of the codecâs video inputs described by Kenoyer was capable of receiving video input from a set-top box.â â Id. (alteration in original).
Biscotti countered that the codec on which Microsoft relied did not have- an input interface to receive audio or video from a set-top box; instead, it -received video input from a computer. Id. at *â- -, 2016 Pat. App. LEXIS 7673, at *21-22. Biscotti explained that Figure 5 shows a codec (309) connected to a computer, not a set-top box. Id. at *-, 2016 Pat. App. LEXIS 7573,-at *22.
Biscotti and Dr. Bovik also asserted that Kenoyerâs Microphone In (513), Alternate In (515), VGA In (503), or Alt Video In (507) do not indicate that they would be used to connect to a set-top box. Id. at *-, 2016 Pat. App. LEXIS 7573, at *22-23. Dr. Bovik testified that only Kenoyerâs Microphone In (513) and Alternate In (515) could potentially be an input interface to receive audio from the set-top box, but neither was described in Kenoyer as being such an interface. Id. Regarding Microphone In (513), Dr. Bovik testified that âa microphone-in connection is not the type of connection one of ordinary skill would consider to be an input interface to receive audio input from the set-top box; indeed, by its very name, it would likely receive input audio from a microphone.â Id. at *7, 2016 Pat. App. LEXIS 7573, at *23. Lastly, Dr. Bovik testified that Ke-noyer disclosed Alternate In (515) receiving signals from a camera and a microphone array, not audio from a set-top box. Id.
The Board found that Microsoft had not shown by a preponderance of the evidence that Kenoyer disclosed all aspects of the claim limitation, primarily because Microsoft had combined separate embodiments within Kenoyer to account for the limitations of the claim, which the Board considered an improper basis for anticipation. Id. at *-, 2016 Pat. App. LEXIS 7573, at *26. The Board noted that Kenoyer discloses two distinct embodiments: Figure 5 shows an embodiment of a codec, and Figures 7a and 7b show an embodiment of a multi-component video conferencing system with codec functionality incorporated in a set-top box. Id. at *-, 2016 Pat. App. LEXIS 7573, at *26-27. The Board also explained that the pass-through discussion was provided in connection with the embodiment of Figures 7a and 7b, not the embodiment of Figure 5. Id. at *-, 2016 Pat. App. LEXIS 7573, at *27. Consequently, the Board found Dr. Houhâs testimony that a POSA would treat all the different teachings together contradicted Kenoyerâs disclosure that these were separate embodiments and was entitled to little weight. Id. (citing Network Commerce, Inc. v. Microsoft Corp,, 422 F.3d 1353, 1361 (Fed. Cir. 2005) (â[E]xpert testimony at odds with the intrinsic evidence must be disregarded.â)).
Additionally, the Board found Microsoftâs argument unpersuasive regarding Microphone In (513), Alternate In (515), VGA In (503), or Alt Video In (507). Id. at *-, 2016 Pat. App. LEXIS 7573, at *28-29. The Board noted that Kenoyerâs description of the embodiment illustrated in Figures 7a and 7b of a âmulti-compo-nent videoconferencing systemâ (âMCVCSâ) with codec functionality incorporated in a set top box, including the pass-through passage, did not contain any specific reference to Microphone In (513), Alternate In (515), VGA In (503), or Alt Video In (507). Id. Thus, the Board found unpersuasive Dr. Houhâs testimony that a POSA would understand such inputs to receive the regular programming/games because those inputs are capable of receiving video input from a set-top box. Id. The Board found it even less persuasive because Biscottiâs arguments and evidence cast âsubstantial doubtâ regarding whether a POSA would consider the inputs appropriate for receiving video or audio from a set-top box, and Dr, Houh cited no evidence to support his assertion. Id.
The Board also found that, even if it were to accept that a POSA would understand that Microphone In (513), Alternate In (515), VGA In (503), or Alt Video In (507) are capable of receiving regular programming from a set-top box, âthe mere possibility of combining the disclosed embodiments in the specific manner suggested by Petitioner and Dr. Houh does not persuade us that a person of ordinary skill in the art would have understood Kenoyer as disclosing combining the disclosed embodiments in the specific manner suggested by Petitioner and Dr. Houh.â Id. at *10, 2016 Pat. App. LEXIS 7573, at *30. The Board found it particularly unpersuasive that Kenoyer did not link the separate embodiments. Id. at *-, 2016 Pat. App. LEXIS 7573, at *30-31 (citing Lindemann Maschinenfabrik GMBH v. Am. Hoist & Derrick Co., 730 F.2d 1452, 1458, 1459 (Fed. Cir. 1984), for the proposition that requiring the prior art elements themselves to be âarranged as in the claimâ means that claims cannot be âtreated ... as mere catalogs of separate parts, in disregard of the part-to-part relationships set forth in the claims and that give the claims their meaningâ). The Board thus concluded that Microsoft had failed to demonstrate by a preponderance of the evidence that Kenoyer anticipated claim 69. Id. at *-, 2016 Pat. App. LEXIS 7573, at *31.
The Board noted that, because each of claims 70, 71, and 74 depends from independent claim 69, claims 70, 71, and 74 included claim 69âs âreceivingâ limitation. Id. at *-, 2016 Pat. App. LEXIS 7573, at *33. The Board found that, when addressing claims 70, 71, and 74, Microsoft did not overcome the shortcomings in its assertion that Kenoyer disclosed the âreceivingâ limitation of claim 69. Id. The Board therefore found that Microsoft had not demonstrated by a preponderance of the evidence that Kenoyer anticipated claims 70, 71, and 74. Id. There was no dissent from the Boardâs findings in this IPR.
II. Discussion
A. Standard of Review
1. Anticipation
Microsoftâs briefing challenges our standard of review as to anticipation. According to Microsoft, the Boardâs âconclusionâ on anticipation was not a finding of fact but instead a conclusion based on âconstruing a written instrument,â which is a legal task afforded no deference. Appellantâs Br. 42. Microsoft also asserts that the prior art reference is a patent, and the interpretation of a patentâs intrinsic evidence, such as the interpretation of the specification here, is reviewed without deference. Id. (citing Teva Pharm. USA, Inc. v. Sandoz, Inc., â U.S.â, 135 S.Ct. 831, 841, â L.Ed.2d â (2015)). Microsoft then claims that the Board did not make âany specific findings of its ownâ and instead âagreed with Biscotti that it made more sense to read Kenoyerâs program instructions sentence restrictively, to apply only to the particular method described in Figure 22.â Id. at 43.
Microsoft confirmed this view in its reply brief by maintaining that the Boardâs anticipation decisions âturned on how to read the Kenoyer patentâ and involved âno credibility findings.â Appellantâs Reply Br. 9. Microsoft claims that the perspective of a POSA in the context of this case is the same perspective at issue in claim construction, and that which would literally infringe if later, anticipates if earlier. Id, at 10 (citing Upsher-Smith Labs., Inc. v. Pamlab, L.L.C., 412 F.3d 1319, 1322 (Fed. Cir. 2005)). Microsoft contends that the inquiries therefore are mirror images because they both depend on how a POSA would read Kenoyerâs intrinsic evidence. Id. Based on this reasoning, Microsoft claims that there is âno persuasive reason that the deference afforded in the two contexts should be polar opposites.â Id.
Despite these assertions, Microsoft stated at oral argument that it was not challenging our standard of review on anticipation. Instead, Microsoft acknowledged that anticipation is a factual question that this court reviews for substantial evidence. See Oral Arg. at 2:49-4:05, http:// oralarguments.cafc.uscourts.gov/default. aspx?fl=2016-2080.mp3 (âWe completely recognize that anticipation is a question of fact [subject to] substantial evidence review.... If we gave the impression that we were saying generally you shouldnât treat anticipation as a question of fact, ... that certainly wasnT what we were trying to convey.â).
Although -Microsoft retreated from challenging âour standard of review, we reiterate that anticipation is a question of fact subject to substantial evidence review. Indeed, case law from the Supreme Court and this court has stated for decades that anticipation is a factual question. See, e.g., Busch v. Jones, 184 U.S. 598, 604, 22 S.Ct. 511, 46 L.Ed. 707 (1902) (âAnticipation is a question of fact[.]â); Reckendorfer v. Faber, 92 U.S. 347, 352, 23 L.Ed. 719 (1876) (âThe defence of want of novelty is set up every day in the courts, and is determined by the court or the jury -as a question of fact upon the evidence adduced[.]â); Kennametal, Inc. v. Ingersoll Cutting Tool Co., 780 F.3d 1376, 1381 (Fed. Cir. 2015) (âAnticipation under 35 U-.S.C. § 102 is a question of fact[.] ... We review -the Boardâs factual findings for substantial evidence .... â); In re Gleave, 560 F.3d 1331, 1334-35 (Fed. Cir. 2009) (âAfter all, anticipation is a question of fact, â including whether an element is inherent in the pri- or art.â).
We therefore consider whether the Boardâs findings on anticipation in this case are supported by substantial evidence.
2. plaim Construction
The Court reviews de novo the-âultimate construction of [a] claim,â as well as any claim construction relying only on intrinsic evidence. Teva Pharm. USA, Inc. v. Sandoz, Inc., â U.S. â, 135 S.Ct. 831, 841, â L.Ed.2dâ(2015). Subsidiary factual findings based on extrinsic evidence, if any, are reviewed for substantial evidence. PPC Broadband, Inc. v. Corning Optical Commcâns RF, LLC, 815 F.3d 747, 751 (Fed. Cir. 2016). Unexpired claims subject to IPR are to be given their âbroadest reasonable construction.â Cuozzo Speed Techs., LLC v. Lee, â U.S. â, 136 S.Ct. 2131, 2136, 195 L.Ed.2d 423 (2016).
B. The Boardâs Anticipation Findings
1. The Legal Standard Applied by the Board
As relevant here, a patent is invalid as anticipated if âthe invention was described inâ a patent or published application âbefore the invention byâ the paten-tee. -35 U.S.C. § 102(e). In order to anticipate the claimed invention, a prior art reference must âdisclose all elements of the claim within the four corners-of the document,â and it must âdisclose those ele-, ments âarranged as in the claim.â â Net MoneyIN,. Inc. v. VeriSign, Inc., 545 F.3d 1359, 1369 (Fed. Cir. 2008) (quoting Connell v. Sears, Roebuck & Co., 722 F.2d 1542, 1548 (Fed. Cir. 1983)). âHowever, a reference can anticipate a claim even if it âd[oes] not expressly spell outâ all the limitations arranged or combined as in the claim, if a person of skill in the art, reading the reference, would âat once envisageâ the claimed arrangement or combination.â Kennametal, 780 F.3d at 1381 (alteration in original) (quoting In re Petering, 301 F.2d 676, 681 (CCPA 1962)); see also Blue Calypso, LLC v. Groupon, Inc., 815 F.3d 1331, 1344 (Fed. Cir. 2016) (â[A] reference may still anticipate if that reference teaches that the disclosed components or func-tionalities may be combined and one of skill in the art would be able to implement the combination.â (citing Kennametal, 780 F.3d at 1383)).
Microsoft argues that the Board applied an âunduly narrow anticipation standardâ in its final written decision. Appellantâs Br. 32. Microsoft asserts that a prior art reference must be viewed in its âtotalityâ for what it describes, id. at 33 (citing In re Donohue, 632 F.2d 123, 126 (CCPA 1980); In re Schaumann, 672 F.2d 312, 317 (CCPA 1978)), and does not have to disclose anything more than is described in the challenged invention, id. (citing Iovate Health Scis., Inc. v. Bio-Engineered Supplements & Nutrition, Inc., 586 F.3d 1376, 1382 (Fed. Cir. 2009)). Microsoft particularly relies on our decisions in Kennametal and Blue Calypso to argue that a prior art reference does not need to disclose all' the limitations arranged or combined as in the claim in order to anticipate if a POSA âwould at once envisageâ the claimed arrangement. Id. at 33-34; see Kennametal, 780 F.3d at 1381; Blue Calypso, 815 F.3d at 1344.
Contrary to Microsoftâs contentions, however, Biscotti correctly argues that the Board set forth the proper anticipation standard in its final written decisions. The Board noted that a prior art reference must provide every element of the claimed invention arranged as in the claim in order to anticipate. E.g., 57 IPR, *-, 2016 Pat. App. LEXIS 7571, at *23-24 (citing Karsten Mfg. Corp. v. Cleveland Golf Co., 242 F.3d 1376, 1383 (Fed. Cir. 2001); In re Bond, 910 F.2d 831, 832 (Fed. Cir. 1990)). But the Board also stated that a claim does not need to âexpressly spell outâ all limitations combined as in the claim if a POSA would âat once envisageâ the arrangement or combination. Id. at *8, 2016 Pat. App. LEXIS 7571, at *24 (quoting Kennametal, 780 F.3d at 1381 (internal quotation marks omitted)). The Board then correctly stated that anticipation is not proven by âmultiple, distinct teachings that the artisan might somehow combine to achieve the claimed invention.â Id. at *10, 2016 Pat, App. LEXIS 7571, at *29-30 (quoting Net MoneyIN, 545 F.3d at 1371 (internal quotation marks omitted)).
Because the Board correctly articulated the anticipation standard, Microsoft appears to challenge only whether the Board applied the standard'Correctly or, instead, set forth additional requirements not covered by a proper interpretation of the anticipation standard. In its reply brief, Microsoft claims that the Board misapplied the anticipation standard by requiring that Kenoyerâs disclosure match the â182 patentâs limitations exactly. See Appellantâs Reply Br. 5-6 (citing 57 IPR, at *9, 2016 Pat. App. LEXIS 7571, at *26 (â[W]e find that the program-instructions sentence does not refer back specifically to the various other disclosures cited by Petitioner.â); id. at *10, 2016 Pat. App. LEXIS 7571, at *28 (â[Microsoft] has not demonstrated by a preponderance of the evidence that the program-instructions sentence relates to the entirety of Kenoyerâs disclosure so as to tie together the - functions that may be performed throughout Kenoyer in order to anticipate a claim directed to instructions encoded on a storage medium.â); id. at *10, 2016 Pat. App. LEXIS 7571, at *28-29 (âWe find that [Microsoft] has not demonstrated by a preponderance of the evidence that ... a person of ordinary skill in the, art would âat once envisageâ a storage medium , with the specific instructions claimed.â); 59 IPR, at *8, 2016 Pat. App. LEXIS 7573, at *26 (â[Microsoft],has not shown, by a preponderance of the evidence that Kenoyer.discloses all aspects of the claim limitation ... identically, in the same relationship as in the claim.â)).
Although the Board may have used wording such as âidenticallyâ more liberal-â ly than it should have because an anticipation analysis indisputably allows for some flexibility, the Boardâs analysis did not suffer from â misapplication of the anticipation standard. For example, when considering claim 6, the Board analyzed and made factual findings regarding the teachings of Kenoyer, the application of the program-instructions sentence to other embodiments outside of Figure 22, and whether a POSA would âat once envisageâ a storage medium with the specific instructions claimed so as to anticipate the â182 patent. See 57 IPR, at *-, 2016 Pat. App. LEXIS 7571, at *26-30. The Board therefore did not require word-for-word similarity or perfection, as Microsoft claims; to the contrary, the Board explicitly considered whether a POSA would âat once envisageâ the combination of the claimed invention given the disconnected teachings in Kenoyer. The Board therefore did not err in its application of the legal standard for anticipation.
The above analysis is not to say, however, that the Boardâs anticipation analysis itself was correct; we consider below Microsoftâs arguments on that score. We find initially, however, that the Board did apply the correct legal standard to its anticipation analysis.
2. Claim 6
In addressing claim 6, the primary dispute on appeal is whether Kenoyer discloses a storage medium with four types of program instructions. This dispute hinges on the meaning of a sentence found near the end of the specification in Kenoyer. That sentence reads: âEmbodiments of a subset or all (and portions or all) of the above may be implemented by program instructions stored in a memory medium or carrier medium and executed by a processor.â Kenoyer, col. 15 11. 21-24. The parties' dispute whether this sentence refers only to Figure 22, which was described in the lines immediately preceding this sentence, or instead to all previous figures and embodiments of the patent.
According to Microsoft, the sentence âmeans what it says: some or all of what is disclosed above in the specification, including âa subset or all (and portions or all)â of the âembodimentsâ (plural), may be implemented through program instructions (i.e., software). As the dissent explained, these terms are âgeneric and broad.ââ Appellantâs Br. 40. Microsoft asserts that the context of the sentence confirms that it applies broadly to all embodiments of Ke-noyer because it comes at the end of the written description âalong with other general paragraphs that âindisputably apply to the entire disclosure, and are written in similar broad generic terms.â â Id. (quoting 57 IPR, at *-, 2016 Pat. App. LEXIS 7571, at *42 (Cherry, A.P.J., dissenting)). Microsoft also argues that the teachings of Kenoyer, such as its statement that, â[i]n various embodiments, codecs may be implemented in software, hardware, or a combination of both,â Kenoyer, col. 5 11. 8-10, would allow a POSA to understand that Kenoyer disclosed the use of program instructions to enable the performance of the relevant functions. Appellantâs Br. 41-42 (citing 57 IPR, at *-, 2016 Pat. App. LEXIS 7571, at *40 (Cherry, A.P.J., dissenting)). Microsoft contends that the Boardâs contrary findings are meritless and ânot credible.â Id. at 43-45.
Biscotti responds by arguing that the sentence in the specification does not link Kenoyerâs storage medium with Kenoyerâs instructions. Biscotti notes that Kenoyerâs specification is âimpreciseâ in its disclosure and that even the Boardâs dissenting panel member stated during the oral hearing that the sentence âis poorly drafted.â Ap-pelleeâs Br. 55 (quoting J.A. 1982, 1. 4 (internal quotation marks omitted)). Bis-cotti also points out that its expert explained to the Board that the sentence in the specification is best read, in context, as applying only to Figure 22, rather than the entire patent. Id. (citing J.A. 9373-76; J.A. 10144-46). Biscotti asserts that Microsoftâs reading of the sentence would create ânumerous questions and ambiguitiesâ that are avoided by Biscottiâs reading, and that, when questioned about these issues at his deposition, Microsoftâs expert responded, âone of ordinary skill in the art could, like, read about what the function was and make a decision.â Appelleeâs Br. 58 (quoting J.A. 9875, 11. 11-22 (internal quotation marks omitted)). According to Biscotti, this testimony from Microsoftâs expert falls well below meeting Microsoftâs burden of proof that a POSA would âat once envisageâ the claimed invention if the POSA would have to âread about what the function was and make a decision.â Id. Biscotti finally argues that Kennametal and Blue Calypso do not help Microsoft because Microsoftâs reading of Kenoyer would result in âindiscriminate combinations of components and functions that can be cobbled together from passages found anywhere within Kenoyerâs lengthy specification,â such that a POSA could not âat once envisageâ all of the combinations, including the combination patented in the â182 patent. Id. at 58-60.
On balance, the partiesâ arguments presented the Board with a close question. As Microsoft notes, the specificationâs three paragraphs between the summary of each step in Figure 22 and claim 1 use broad language that refers generally to âembodiments,â which might be interpreted as referring to all embodiments of the patent. See Kenoyer, col. 15 1. 21-col. 16 1. 2. The final paragraph also states that â[fjurther modifications and alternative embodiments of various aspects of the invention may be apparent to those skilled in the art in view of this description.â Kenoyer, col. 15 11. 55-57 (emphasis added). The broad language of these three paragraphs without any reference to Figure 22 might imply that these paragraphs refer more generally to the embodiments throughout the patent.
But Biscottiâs reading also has merit. The first two paragraphs after the paragraph expressly describing Figure 22 use different wordingâreferring only to âembodimentsââthan the last paragraph in the specificationâreferring to âembodimentsâ within the context of âthe invention.â One therefore can validly read the last paragraph as referring more generally to the invention as a whole, since the specification specifically refers to the invention, while the previous two paragraphs refer only to the description of Figure 22. See Kenoyer, col. 151. 21-col. 161. 2.
The first part of the description for Figure 22 also states, â[i]t should be noted that in various embodiments [ (plural) ] of the methods described below, one or more of the elements described may be performed concurrently, in a different order than shown, or may be omitted entirely.â Id. col. 15 11. 2-6 (emphasis added). This leads into a description of the block diagram of the method in Figure 22. Id. col. 15 11. 8-20. The very next sentence after the description of the block diagram states that â[e]mbodiments [ (plural) ] of a subset or all (and portions or all) of the above may be implemented by program instructions stored in a memory medium or carrier medium and executed by a processor.â Id. col. 15 11. 21-24 (emphasis added). In context, the sentences both could refer to the description of the block diagram of Figure 22 to provide variations for performing the method, and both refer to embodiments thereof.
Although Microsoftâs arguments are not unreasonable, we do not review this question de novo; anticipation is a question of fact, and we review the Boardâs findings for substantial evidence. Kennametal, 780 F.3d at 1381. As discussed above, the material in the disclosure lends itself to more than one reasonable interpretation. The Board explained that both sides proffered expert testimony regarding how a POSA would view these disclosures, and the Board considered and analyzed the expert testimony from each. Based on the evidence before it, the Board found that âKe-noyerâs program-instructions sentence does not make sense as a disclosure blanketing all of the preceding 34 pagesâ and that the sentence âdoes not refer back specifically to the various other disclosures cited by [Microsoft],â 57 IPR, at *9, 2016 Pat. App. LEXIS 7571, at *26. Instead, the Board found that Biscottiâs argument and evidence regarding the meaning of the sentence was âat least as persuasive as [Microsoftâs] argument and evidenceâ such that Microsoft had failed to meet its burden of proof. Id. at *9, 2016 Pat. App. LEXIS 7571, at *27.
The- Board further explained that it âmakes sense that a videoconferencing method would lend itself to implementation -with program instructions,â and it âmakes sense that the program-instructions sentence would refer specifically to the videoconferencing method disclosedâ in the discussion of Figure 22. Id. The Board therefore âagree[d] with [Biscotti]â that Kenoyerâs reference to âembodiments of the methods described belowâ and â[e]m-bodiments of a subset or all (and portions or all) of the aboveâ both refer to the description of Figure 22. Id. at *7, 2016 Pat. App. LEXIS 7571, at *27-28. The Board accordingly found that Microsoft had ânot demonstrated by a preponderance of the evidence that Kenoyerâs program-instructions sentence and various other cited portions disclose the claimed âstorage mediumâ with its four specific âinstructions for,â or that a person of ordinary skill in the art would âat once envisageâ a storage medium with the specific instructions claimed.â Id. at *10, 2016 Pat. App. LEXIS 7571, at *28-29.
The Board found further support for its conclusion in the fact that Kenoyerâs alleged disclosures of a storage medium with instructions in accordance with the limitations of claim 6 âare unrelated to each other in [the] disclosure.â Id. at *10, 2016 Pat. App. LEXIS 7571, at *29. The disclosure therefore, at most, amounted to âdistinct teachings that the artisan might somehow combine to achieve the claimed invention.â Id. at *10, 2016 Pat. App. LEXIS 7571, at *29-30 (quoting Net MoneyIN, 545 F.3d at 1369 (internal quotation marks omitted)). The Board also found that Microsoft had failed to provide âpersuasive evidence that the disclosure would be understood by one of ordinary skill in the art to mean that the storage medium with program instructions and the functions performed in the various embodiments are used together in Kenoyer.â Id. at *10, 2016 Pat. App. LEXIS 7571, at *30. The Board therefore found that Kenoyer did not anticipate claim 6 of the â182 patent. Id.
- As Biscotti correctly argued, â[h]owever âcloseâ certain factual questions may have been before the Board, the Board was entitled, at the very least, to credit Biscot-tiâs evidence and its expertâs view of Ke-noyerâs disclosure over Microsoftâs, and to find that Microsoft failed to meet its burden of proof.â Appelleeâs Br. 51. The case, therefore, âcannot be a close case on appeal under the proper standard of review.â Id. âWhatever arguable merit there may be to Microsoftâs reading of Kenoyer, it was certainly not compelled here.â Id.
Biscottiâs argument properly aligns with our role as an appellate court that reviews the legal and factual determinations of a trial court or, in this instance, the Board. See, e.g., Key Pharm. v. Hereon Labs. Corp., 161 F.3d 709, 715 (Fed. Cir. 1998) (noting that âthe function of an appellate court is to correct errors committed at trialâ). We do not duplicate the efforts of a trial court or the Board. We instead provide proper - deference to the fact-finder below rather than reweigh factual determinations. See, e.g., Anderson v. City of Bessemer City, 470 U.S. 564, 573-74, 105 S.Ct. 1504, 84 L.Ed.2d 518 (1985) (âIf the district courtâs account of the evidence is plausible in light of the record viewed in its entirety, the court of appeals may not reverse it even though convinced that had it been sitting as the trier of fact, it would have weighed the evidence differently.â); Lavender v. Kurn, 327 U.S. 645, 653, 66 S.Ct. 740, 90 L.Ed. 916 (1946) (â[T]he appellate courtâs function is exhausted when that evidentiary basis [to support'a verdict] becomes apparent, it being immaterial that the court might draw a contrary inference or feel that another conclusion is more reasonable.â).
Given the evidence before the Board and its underlying factual findings, we conclude that the Boardâs finding that Kenoyer did not anticipate claim 6 is supported by substantial evidence. â
3. Claim 69
The primary dispute between the parties regarding claim 69 involves whether Ke-noyer teaches the following limitation: âreceiving, on the audiovisual input interface, a set-top box audiovisual stream from a set-top box, the set-top box audiovisual stream comprising a set-top box video stream and a set-top box audio stream.â â182 patent, col. 3811.1-4.
Microsoft asserts that Kenoyer discloses this limitation in its teaching about an external codec with audio and video inputs coupled to and receiving audiovisual signals from a television set-top box. It explains that âKenoyer introduces the codec as a device with functionality to process audio and video signals, and Kenoyer uses the term âcodecâ that way consistently thereafter.â Appellantâs Br. 46. Microsoft also argues that Kenoyerâs Figure 5 provides a detailed view of an audiovisual input interface for an embodiment of external codec 309, id., and that Kenoyer describes physical forms in which the co-dec might appear, id. at 46-47. According to Microsoft, these descriptions would allow a POSA to âreasonably understandâ and âat once envisageâ the functionality of the external codec and the arrangement of the set-top box coupled -to an external codec as being read together. Id. at 47-48. Microsoft asserts that this case is similar to our decision in Blue Calypso because the prior art in this case similarly , contemplates the combination of disclosed func-tionalities, and Kenoyerâs failure to explain word-for-word that inputs on the external codec depicted in Figure 5 are also needed for and included on an external codec that is coupled to a set-top box does not negate Microsoftâs argument because a POSA would at once envisage the combined features. Id. at-48-49.
According to Microsoft, the Boardâs holding was based' on two reasons: (1) the Board thought Microsoftâs reading improperly âcombined separate embodiments to account for the limitations of the claimâ by putting together the inputs from Figure 5 with the subsequent set-top box disclosure of a pass-through extĂŠrnal codec, id: at 49 (citing Kenoyer, Figure 5 and col. 1011.25-30); and (2) the Board could not find requisite inputs or disclosures in Figures 7a and 7b, so Kenoyer could not anticipate, id. at 50 (citing 59 IPR, at *-â , 2016 Pat. App. LEXIS 7573, â at *27). As to the first reason, Microsoft argues that it was allowed to rely on Kenoyerâs description of audiovisual inputs in connection with an external codec and then refer to an external codec again without having to repeat the discussion of the same audiovisual inputs. Id. at 49. As to the second reason,. Microsoft argues that it relied on the description of the standalone codec coupled with the set-top box for the codec functionality, so Figures 7a and 7b,, which show a codec incorporated into a set-top box, are inapposite. Id. at 50.
Biscotti characterizes Microsoftâs argument as (1) Kenoyer discloses a unitary concept of an external codec that performs the receiving function, and (2) all references in Kenoyer to a codec should be read together. Appelleeâs Br. 60. Biscotti argues that the Board correctly rejected that argument because the codecs disclosed in Kenoyer on which Microsoft relies âreferred to distinct, largely incompatible embodiments.â Id. at 63. And Figures 3 and 5, which do use the same reference to a codec, related to a personal computer embodiment, as shown by Figure 3âs appearance and by Figure 5âs inclusion of ports (e.g., âVGA Inâ and âMicrophone Inâ), that ordinarily are not used with set-top boxes. Id. Biscotti asserts that this case is similar to Net MoneyIN, where we held that the district court erred when it combined parts of separate protocols, which âinvoke[d] the question of obviousness, not anticipation.â 545 F.3d at 1371.
Regarding Figures 7a and 7b, Biscotti notes that the Board addressed these figures because âMicrosoftâs petition referred explicitly to the codec of those figures in connection with the first âreceivingâ step.â Appelleeâs Br. 63. The Board considered Microsoftâs expert testimony regarding Figures 7a and 7b and the codecâs âpass-throughâ function, and it found the argument and the testimony unpersuasive. Id. at 64 (citing 59 IPB, at *-, 2016 Pat. App. LEXIS 7573, at *27). According to Biscotti, Microsoftâs new argument that Figures 7a and 7b are âinappositeâ merely confirms the Boardâs analysis.
Finally, Biscotti asserts that Microsoft has changed its argument on appeal from the argument that was presented to the Board in Microsoftâs petition to institute the IPRs. Id. Biscotti argues that Microsoft has waived its new arguments by not presenting them to the Board. Id.
As an initial matter, Microsoft did not present to the Board the full argument that it presents here on appeal. In its petition to institute the IPR, the extent of its analysis regarding the relevant limitation of claim 69 is as follows:
Kenoyer discloses receiving audio and video from the set top box using the interface described above [Figure 5]. âThe codec may also be in an independent housing that is coupled to the set-top box 705. The codec may act as a pass-through for the regular programming/games when a conference is not being held.â Kenoyer therefore shows [the limitation].
J.A. 306-07 (citations omitted). The citations provided by Microsoft are the line numbers for the quote in Kenoyer and paragraphs from Microsoftâs expert report that refer to the same quoted language within the context of Figures 7a and 7b, J.A. 2266-67, 2281-82.
Microsoftâs argument,, therefore, generally referred to Figure 5 and then used the language in Kenoyer, col. 10 11. 25-28, regarding the pass-through clause to support the anticipation of claim 69. This bare-bones allegation provided no information or argument as to how the interface of Figure 5 allows for connection to a set-top box or how a POSA would understand to use the codec described in Figure 5 along with, as Microsoft describes it, the figure-less description of a codec that can be used in an independent housing and coupled to the set-top box.
Microsoftâs brief on appeal is far more detailed and contains substantial new arguments regarding why it believes Kenoyer anticipates this limitation of claim 69. But, Microsoft needed to include those arguments in the petition to institute. Specifically, a petition must include:
The exhibit number of the supporting evidence relied upon to support the challenge and the relevance of the evidence to the challenge raised, including identifying specific portions of the evidence that support the challenge. The Board may exclude or give no weight to the evidence where a party has failed to state its relevance or to identify specific portions of the evidence that support the challenge.
37 C.F.R. § 42.104(b)(5) (emphasis added). And, the general rule is that any argument not raised before the Board is waived on appeal. See Redline Detection, LLC v. Star Envirotech, Inc., 811 F.3d 435, 450 (Fed. Cir. 2015). Microsoft not only failed to present these arguments in its petition, it never sought permission to present them to the Board during the course of the IPR.
The Board found that Microsoftâs description of Kenoyer did not explain how the interface of Figure 5, with the Microphone In (513), Alternate In (515), VGA In (503), and Alt Video In (507), refers to the codec described in column 10, lines 25-30, acting as a pass-through while coupled to a set-top box. 59 IPR, at'*-, 2016 Pat. App. LEXIS 7573, at *27-28. The Board explained that, with no direct link in Ke-noyer to connect these descriptions of a codec, Microsoftâs expert simply contended that a POSA âwould understand Kenoyer as disclosing using such inputs to receive the regular programming/games because those inputs are capable of receiving video input from a set-top box.â Id. at *9, 2016 Pat. App. LEXIS 7573, at *28. The Board found this contention unpersuasive because Biscotti had introduced evidence that âcast substantial doubtâ regarding whether a POSA would have considered the interface connections appropriate for connecting with a set-top box. Id. at *-, 2016 Pat. App. LEXIS 7573, at *28-29. Biscotti introduced evidence that the interface of Figure 5 crossed over with the description of Figure 3 (both are identified with the same numeric identifier, (309)), which was a set-up in which the codec was connected to a computer. J.A. 1053. Biscot-ti also argued that a POSA would understand that neither of the inputs VGA In or Alt Video In would be used with a set-top box because they are used for connecting computers and monitors, not for the transmission of a cable or satellite signal. J.A. 1053. There also was no disclosure of an audio input interface for the set-top box because the Microphone In would be used for a microphone, and a POSA would understand the Alternate In, which Kenoyer describes as input for a camera or microphone arrayânot a set-top boxâwould not be used for a set-top box. J.A, 1054. Microsoft, meanwhile, provided no explanation in its petition as to how the interface of Figure 5 would be compatible with a set-top box and the codec described in Kenoyer, column 10 lines 25-28.
The Boardâs factual findings in favor of Biscotti are supported by substantial evidence, and any supplemental argument seeking to refute those findings on appeal has been waived. We therefore affirm the Boardâs finding that Microsoft failed to prove claim 69 is anticipated by Kenoyer.
C. The Boardâs âConstructionâ of âSet-Top Boxâ
Microsoft argues that the Board did not use the broadest reasonable interpretation of the term âset-top box,â which Microsoft asserts is defined in the â182 patent as âany device that can provide video tuning, decryption and/or decoding functionality, especially as that functionality relates to reception of broadcast, cable, and/or satellite television signals.â Appellantâs Br. 51 (quoting â182 patent, col. 9 11. 23-26 (internal quotation marks omitted)). Microsoft contends that this broad definition includes televisions and computers. Id. at 51-62. Because the Board allegedly limited Ke-noyer according to the meaning of âset-top boxâ provided in Kenoyer rather than applying the broader definition of âset-top boxâ from the â182 patent to the teachings of Kenoyer, Microsoft argues that the Board erred in its analysis of the scope of Kenoyerâs teachings. According to Microsoft, this error by the Board was prejudicial to its anticipation case because allowing a computer to be a âset-top boxâ would' result in- the conclusion that Kenoyerâs description of Figures 3 and 5 anticipates claim 69. Id. at 52-53. Microsoft also asserts that using the -definition of -âset-top boxâ from the â182 patent would have changed the Boardâs analysis regarding claim 6 because the new definition of set-top box would allow for the â program-instructions sentence in - the specification to anticipate claim 6, even if the sentence referred only to Figure 22. Id. at 53.
Biscotti argues that Microsoftâs claim construction argument is âan inapt repackaging of its disagreement with the Boardâs factual findings on anticipationâ and a mis-characterization of the Boardâs decisions. Appelleeâs Br> 66.. Biscotti argues that the Boardâs decisions,in all three IPRs did not rely on any construction of any term, much less âset-top box.â Id. Biscotti notes that âset-top boxâ does not appear at all in the storage medium and- instructions limitations of claim 6, so any construction of âset-top boxâ would, have no impact on the Boardâs decision for claim 6. Id. at 67-68. Biscotti also contends that the Boardâs decision turned on âthe interrelation between different parts of Kenoyerâs - disclosureâ i.e., whether it was proper to combine those parts for anticipation purposes in the first place, as Microsoft urged.â Id. at 68. Biscotti argues that the Board was unpersuaded that a POSA would âat once envisageâ the steps of claim 69 by âcombining scattered passages of Kenoyer in the manner Microsoft and its expert urged.â Id. at 69.
Microsoftâs argument that a computer could act as a set-top box could be relevant to the analysis of: claim 69, especially given Biscottiâs argument that Microsoft failed to prove a codec connected to a set-top box because the interface of Figure 5 is shown in Figure 3 to connect to a computer. Although Microsoft argues that a computer might be able to have the functionality of a set-top box under what it alleges is the patentâs definition of set-top box, Microsoft fails to explain how a computer, especially the computer in Kenoyer, would receive broadcast, cable, or satellite television signals. Microsoft provides no explanation as to how a POSA would understand the computer in Kenoyer to be a set-top box with the special functionality required by Microsoftâs definition.
Even if Microsoft had overcome that hurdle, the error still would not be prejudicial because Microsoft waived the arguments regarding claim 69 that relate to this construction. In other words, the Boardâs decision hinged on factors that were not affected by an allegedly erroneous construction of âset-top box.â Although some of the reasoning provided by the Board might be affected by- use of Microsoftâs construction of set-top boxâlike the Boardâs discussion of Figure 5 and Figure 3âthere are other bases for the Boardâs decision that would not change and which suffice to support its conclusions.
D. Obviousness of the Dependent Claims
According to Microsoft, the Board erred in its obviousness analysis for- the same reasons it erred in its anticipation analysis because the Board relied on the same reading of Kenoyer without conducting a separate obviousness analysis. As Biscotti points out, âthe parties do not dispute that if the Court affirms or vacates the Boardâs rulings regarding anticipation of claim 6, it should do the same with respect to the Boardâs rulings on obviousness of claims 22, 36, 37, 42, 44, and 45.â Appelleeâs Br. 70.
As described above, the Boardâs findings as to claims 6 and 69 are supported by substantial evidence. Because Microsoft does not argue-separately that the Board erred in its obviousness analysis, we also affirm the Boardâs obviousness holdings.
III. Conclusion
For the foregoing reasons, we find-'that the Boardâs decisions are supported by substantial evidence. We-therefore affirm the Boardâs decision that Microsoft failed to prove invalidity by a preponderance of the evidence in each of the IPRs on appeal.
AFFIRMED
. The dissent faults our conclusion that Microsoft fails to explain how Kenoyerâs computer would receive broadcast, cable, or satellite television signals. Dissent at 1085. But, as described above, our conclusions were drawn in the context of analyzing Microsoft's argument that the Board erred in its interpretation of "set-top box.â In particular, Microsoft has not shown how the computer in Kenoyer would qualify as a sĂŠt-top box under its own definition of that term. As described above, that failure is fatal to Microsoftâs claim of error.