PTAB Judge Who Owns Cisco Stock Withdraws from IPR Following Centripetal Claims of Bias

“While the Article 3 Judge’s wife’s holdings of Cisco stock may invalidate his holding of validity, it is possible that an administrative judge willfully holds the same Cisco stocks and It is simply not true that collateral attacks can be decided against the very judgment.” – Centripetal

Cisco, BiasFollowing Recusal and Vacatur’s motions filed by Centripetal Networks, Inc. on December 30, a Patent Trial Board (PTAB) judge withdrew the inter partes review (IPR) proceedings. Solve problems and simplify briefings. “

Centripetal filed a December 30 motion in an IPR filed by Palo Alto Networks in November 2021, and Cisco Systems, Inc. successfully applied to join. The motion allows Administrative Patent Judge (APJ) Brian McNamara to “seek to notify, sell, or refuse” from litigation involving Cisco, even though he owns Cisco stock and is “compensated.” By failing to provide an “obvious attempt,” he argued, he at least created the appearance of real prejudice. According to the motion, he was paid large sums of money (apparently part of the profits) from one of Cisco’s lobbyist law firms.

In a retraction filed yesterday, McNamara argued that Centripetal’s allegations were “unfounded” and that the motion was filed “without seeking the necessary permits.” McNamara said the financial disclosures cited by Centripetal have been publicly available for 10 years and are reviewed and approved annually by the Office of Government Ethics (OGE). “OGE must reject any issue if its financial disclosures show interest above $15,000,” McNamara said in the withdrawal summary. “That’s not the case here.”

His severance pay from Foley & Lardner, which Centripetal said lobbied for Cisco, was “not subject to any particular issue, and the company provides retirees with a list of current clients. No. Like a big law firm, it changes every day.”

it is not correct

Centripetal’s motions against Vacatur and Recusal argued that McNamara’s “direct financial confrontation violates Centripetal’s rights and undermines the integrity of the Board and public confidence in the adjudication process.” . The motion was disqualified from hearing the case by Judge Henry C. Morgan, Jr. of the United States District Court for the Eastern District of Virginia, so recently the Court of Appeals for the Federal Circuit ruled against Cisco on his 27 It added that it has vacated rulings of more than $50 million. His wife knows she owns $4,687.99 of Cisco stock. Centripetal is described in its motion:

“While the Article 3 Judge’s wife’s holdings of Cisco stock may invalidate his holding of validity, it is possible that an administrative judge willfully holds the same Cisco stocks and It is simply not true that a collateral attack can be determined against that very judgment.”

Between 2015 and 2020, McNamara’s stake in Cisco was between $1,001 and $15,000, according to Centripetal. During that time, he “deliberately decided on a number of his IPRs involving Centripetal and Cisco while owning shares of Cisco.” This includes participating in all panels that determined Cisco’s 14 petitions filed in 2018 and personally making the final written decisions with several agencies.

With amounts from Foley & Lardner ranging from $30,000 to $60,000, Foley “had APJ McNamara on its website until June 2022.” Furthermore, Foley “recently named Cisco as the ‘Most Profitable Deal’.”

Statistics show the emergence of bias

Centripetal also cited McNamara’s engine rate, which suggests a bias. According to the motion, McNamara joined the panel in each of his 14 IPR lawsuits that Cisco filed in his 2018 against his Centripetal patents. The board has initiated trials in nine of these IPRs, “resulting in a trial initiation rate of his 64.2%.”

While its agency rate is broadly in line with the board-wide agency rate for the same period, Centripetal has the McNamara claimed eight were authorized, seven of which had been initiated.as a result 87.5% agency rate. But of his 10 cases decided without McNamara, only two were started. 20%.

Centripetal Motion states that “post-judgment agency fee discrepancies between panels including and not including APJ McNamara, determined after Cisco’s coverage was established, at least appear to be a real bias.” .

According to McNamara’s retraction, an APJ representative will be appointed to replace him in the IPR related to patent number 9,917,856.

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