PTAB

IPR2017-01199

Itron Inc v. Smart Meter Technologies Inc

Key Events
Petition
petition

1. Case Identification

2. Patent Overview

  • Title: Method and System for Measuring and Reporting Power Consumption
  • Brief Description: The ’524 patent discloses a method and system for measuring electrical power consumption. The system uses a processor connected to a power meter to calculate consumption data, convert it into an IP-based format, and transmit it over various networks, including external power line and wireless networks.

3. Grounds for Unpatentability

Ground 1: Obviousness over Suh - Claims 17-22 are obvious over Suh

  • Prior Art Relied Upon: Suh (Application # 2002/0161536).
  • Core Argument for this Ground:
    • Prior Art Mapping: Petitioner argued that Suh, which describes an "internet ready electronic power meter," discloses all limitations of the challenged claims. Suh's meter measures power usage by taking periodic readings of a meter chip, calculates consumption data (kilowatt-hours), and converts this data into an IP-based format by encapsulating it in an IP datagram for email transmission. Crucially, Petitioner asserted Suh teaches autonomous transmission by automatically sending this data every hour based on an internal clock, without external prompting. Suh further discloses using a power line as a communication medium, thus meeting the key limitations of independent claim 17. Petitioner also contended that Suh teaches the limitations of dependent claims 18-22, including generating utility bills, transmitting over an IP-based network (the Internet), using wireless transmission, and generating control signals for appliances.

Ground 2: Obviousness over Suh in view of Bartone - Claims 17-22 are obvious over Suh in light of Bartone

  • Prior Art Relied Upon: Suh (Application # 2002/0161536), Bartone (Patent 6,633,823).
  • Core Argument for this Ground:
    • Prior Art Mapping: Petitioner argued that to the extent Suh is deficient, Bartone supplies any missing elements. Bartone discloses a utility management system for real-time energy monitoring and control. It explicitly teaches the autonomous acquisition and transmission of energy use data at preset, user-selectable time intervals (e.g., 15, 30, or 60 minutes). Bartone also discloses using various communication forms, including power line carrier signals, to transmit this data to a central data center.
    • Motivation to Combine: A POSITA would combine the teachings of Suh and Bartone as both relate to systems for measuring and reporting energy usage. A POSITA would have been motivated to use Suh's integrated meter-transceiver unit as a simpler substitute for the separate measurement and transceiver devices taught in Bartone. Furthermore, adding Suh's power line communication capability to Bartone's system would be a predictable way to enhance communication reliability through redundancy, a known design goal.
    • Expectation of Success: A POSITA would have had a high expectation of success, as the combination involves substituting known elements and adding known communication paths to achieve predictable improvements in simplicity and reliability.

Ground 3: Obviousness over Villicana in view of Bartone - Claims 17-22 are obvious over Villicana in light of Bartone

  • Prior Art Relied Upon: Villicana (Patent 7,747,534), Bartone (Patent 6,633,823).
  • Core Argument for this Ground:
    • Prior Art Mapping: Petitioner presented an alternative obviousness combination. Villicana discloses an electrical utility meter system that measures energy consumption and automatically communicates this information to a host computer via the Internet. Villicana’s system performs a programmed "daily upload" of power usage data over a network using a TCP/IP connection, which can be implemented using "power line carrier functionality." Bartone supplements Villicana by teaching advanced load management, remote appliance control, and automated utility billing services.
    • Motivation to Combine: A POSITA would combine Villicana with Bartone to overcome the shortcomings of a user-driven system. Villicana provides data to a user, who must then take manual action. A POSITA would be motivated to add the device controllers and load management services from Bartone to provide the utility or consumer with automated, remote control over energy consumption, a key feature for managing costs and grid load. A POSITA would also add Bartone’s billing capabilities to automate a core function for utility companies.
    • Expectation of Success: A POSITA would have expected success in adding Bartone's known control and billing functionalities to Villicana's similar energy monitoring system to create a more comprehensive and automated solution.

4. Key Claim Construction Positions

  • Term: autonomously (in claim 17)
  • Proposed Construction: "without external prompting"
  • Rationale: Petitioner argued this construction is compelled by the prosecution history of the ’524 patent. The patentee distinguished prior art by arguing that it required proactive access (e.g., via a web browser) to acquire data. The patentee explicitly defined "autonomously" as "without external prompting" to overcome this rejection, making this limitation the purported point of novelty. Petitioner contended this definition covers transmissions triggered by an internal clock or a threshold being met, as opposed to a specific external request for data.