DCT
1:24-cv-01197
Digital Shovel Holdings Inc v. RK Mission Critical LLC
Key Events
Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Digital Shovel Holdings Inc. (Ontario, Canada)
- Defendant: RK Mission Critical, LLC; RK Mechanical, LLC; and RK Industries, LLC (Colorado)
- Plaintiff’s Counsel: Banner & Witcoff, Ltd.
- Case Identification: [Digital Shovel Holdings Inc.](https://ai-lab.exparte.com/party/digital-shovel-holdings-inc) v. [RK Mission Critical, LLC](https://ai-lab.exparte.com/party/rk-mission-critical-llc), et al., 1:24-cv-01197, D. Colo., 05/01/2024
- Venue Allegations: Venue is alleged to be proper in the District of Colorado because the defendant entities are incorporated in Colorado, maintain a principal place of business in the district, and have committed alleged acts of infringement within the district, including offers for sale.
- Core Dispute: Plaintiff alleges that Defendant’s transportable datacenter products, marketed for cryptocurrency mining, infringe three patents related to the structural and thermal management design of such systems.
- Technical Context: The technology concerns modular, transportable datacenters, often built from shipping containers, which are crucial for industries like cryptocurrency mining that benefit from deploying high-density computing power in locations with low-cost electricity and favorable climates.
- Key Procedural History: The complaint alleges that Defendant had pre-suit knowledge of the applications that became the ’414 and ’605 Patents as early as June 2021. It further alleges that Defendant received express notice of the issued ’414 Patent in February 2023 and the issued ’605 Patent in June 2023, which may form a basis for the willful infringement allegations. The complaint also alleges that Defendant’s products were copied from Plaintiff's commercial product after Defendant observed it at a customer site.
Case Timeline
| Date | Event |
|---|---|
| 2019-02-15 | Earliest Priority Date for ’557, ’605, and ’414 Patents |
| 2019-01-01 | Plaintiff allegedly begins selling its 40FT XL-1400-HP product |
| 2021-06-01 | Defendant allegedly made aware of patent applications for ’414 and ’605 Patents |
| 2022-12-27 | U.S. Patent No. 11,540,414 issues |
| 2023-02-27 | Defendant allegedly notified of issued ’414 Patent |
| 2023-05-09 | U.S. Patent No. 11,647,605 issues |
| 2023-06-01 | Defendant allegedly made aware of issued ’605 Patent |
| 2024-02-20 | U.S. Patent No. 11,910,557 issues |
| 2024-05-01 | Complaint filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 11,910,557 - "Transportable Datacenter"
- Issued: February 20, 2024
The Invention Explained
- Problem Addressed: The patent addresses the challenge of effectively and efficiently cooling high-density computing equipment within a compact, transportable datacenter, which is difficult with conventional designs that use raised floors and ceiling return plenums. (U.S. Patent No. 11,540,414, col. 1:45-63).
- The Patented Solution: The invention describes a method of assembling a datacenter within a housing, such as a shipping container, by creating a specific airflow architecture. This involves establishing a "cold air plenum" in front of the server racks and one or more "hot air plenums" behind them, with air intake and exhaust on opposing sidewalls. A key feature is arranging pairs of racks in a "v-shaped configuration" to manage airflow and reduce turbulence. (’557 Patent, Claim 1; U.S. Patent No. 11,540,414, Fig. 14).
- Technical Importance: This design architecture enables the deployment of dense computing infrastructure in remote locations by simplifying the cooling system to leverage ambient air, thereby reducing both capital and operational costs. (U.S. Patent No. 11,540,414, col. 1:26-34).
Key Claims at a Glance
- The complaint asserts independent method claim 1. (Compl. ¶40).
- Essential elements of claim 1 include:
- Providing a housing with air intake openings on a first sidewall and air exhaust openings on an opposing second sidewall.
- Installing a plurality of racks arranged in pairs.
- Arranging at least some rack pairs in a v-shaped configuration in a horizontal direction to reduce turbulence in the air flow.
- Installing a ventilation system to generate progressive air flow through the intake openings, a cold air plenum, processor bays, one or more hot air plenums, and the exhaust openings.
- Positioning the front faces of the processor bays adjacent to the cold air plenum and the rear faces adjacent to the hot air plenum(s).
U.S. Patent No. 11,647,605 - "Transportable Datacenter"
- Issued: May 9, 2023
The Invention Explained
- Problem Addressed: The patent addresses the same technical problem as the ’557 Patent: the need for a practical and efficient cooling design for high-density, transportable datacenter facilities. (’605 Patent, col. 1:45-63).
- The Patented Solution: The patented solution is an apparatus embodying the same core architecture described in the ’557 Patent. It claims a transportable datacenter comprising a housing, a plurality of racks (some arranged in pairs at an angle to one another), a cold air plenum, at least one hot air plenum, and a ventilation system that generates a progressive airflow path from intake to exhaust. (’605 Patent, Claim 1; col. 2:9-28).
- Technical Importance: This apparatus provides a physical system that allows for efficient, high-density computing operations in locations chosen for economic advantages, such as proximity to low-cost power, rather than proximity to industrial manufacturing centers. (’605 Patent, col. 1:26-34).
Key Claims at a Glance
- The complaint asserts independent apparatus claim 1. (Compl. ¶66).
- Essential elements of claim 1 include:
- A housing with air intake and exhaust openings.
- A plurality of racks, with at least some arranged in pairs at an angle to one another in a horizontal direction to reduce turbulence.
- A cold air plenum between the intake openings and the front faces of the processor bays.
- At least one hot air plenum between the rear faces of the processor bays and the exhaust opening.
- A ventilation system that generates progressive air flow through the plenums and processor bays.
- Each rack comprises shelves, with each shelf having at least two processor bays.
U.S. Patent No. 11,540,414 - "Transportable Datacenter"
- Issued: December 27, 2022
Technology Synopsis
This patent claims a transportable datacenter system with a specific thermal and structural architecture. The invention solves the problem of cooling high-density processors by using a housing with dedicated cold and hot air plenums and arranging server racks at an angle to reduce airflow turbulence, while also claiming specific power and data networking systems. (’414 Patent, Abstract).
Asserted Claims & Accused Features
- Asserted Claims: Independent apparatus claim 1. (Compl. ¶90).
- Accused Features: The complaint alleges infringement by the DISRUPTOR products based on their housing, V-shaped rack configuration, ventilation system creating cold and hot plenums, and the inclusion of a transport system, electric power system, and data network. (Compl. ¶¶92-107).
III. The Accused Instrumentality
Product Identification
- "The DISRUPTOR™ 2000" and "The DISRUPTOR® 2000 Texas Edition" (collectively, the "Accused Products"). (Compl. ¶23).
Functionality and Market Context
- The Accused Products are described as "manufactured and constructed modular cryptocurrency mining containers, which include major structural modifications to single-trip shipping containers." (Compl. ¶¶42, 68, 92).
- The complaint alleges they are designed for the same market as the plaintiff's products and are "substantially identical even in appearance" to the plaintiff's own patented product. (Compl. ¶30).
- The complaint further alleges that Defendant sold over 250 units of the Accused Products to one of the plaintiff's prior customers. (Compl. ¶32).
IV. Analysis of Infringement Allegations
11,910,557 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| A method of assembling a transportable datacenter, including: providing a housing, wherein the housing includes: one or more air intake openings for receiving air...on a first sidewall; and one or more air exhaust openings for exhausting air...on a second sidewall opposing the first sidewall | Defendant assembles its Accused Products, which have a housing with air intakes on one side and air exhausts on the opposing side. | ¶42-45 | col. 11:10-24 |
| installing a plurality of racks in the transportable datacenter, each rack having a plurality of processor bays...wherein at least some of the racks are arranged in pairs... | Defendant installs multiple racks, each with shelves for processor bays, and arranges them in pairs within the housing. | ¶46-48 | col. 11:5-14 |
| arranging the racks in at least some of the pairs of racks in a v-shaped configuration in a horizontal direction to reduce turbulence in the air flow... | Defendant arranges the pairs of racks at an angle to one another, forming a V-shape, as depicted in an annotated photograph. | ¶48 | col. 19:40-49 |
| installing a ventilation system that generates an air flow progressively through the one or more air intake openings, a cold air plenum, the processor bays, one or more hot air plenum and the one or more air exhaust openings... | Defendant installs a ventilation system, including exhaust fans, that generates airflow from the intake side, through a cold aisle, through the processor bays, into a hot aisle, and out the exhaust openings. | ¶50-52 | col. 14:16-36 |
| wherein the front faces of the processor bays are adjacent the cold air plenum and the rear faces of the processor bays are adjacent the one or more hot air plenums... | In the assembled product, the front of the processor bays face the cold air intake side (cold plenum) and the rear of the bays exhaust into the space leading to the exhaust fans (hot plenum). | ¶51-52 | col. 14:20-27 |
The complaint provides an annotated photograph showing what it alleges is the accused product's V-shaped rack configuration. (Compl. p. 13).
11,647,605 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| A transportable datacenter, comprising: a housing having one or more air intake openings...and one or more air exhaust openings... | The Accused Products are built within a modified shipping container that serves as a housing, with air intake openings on one side and exhaust openings on the other. | ¶68-70 | col. 11:10-24 |
| a plurality of racks...at least some of the racks are arranged in pairs...and the racks...are arranged at an angle to one another in a horizontal direction to reduce turbulence in the air flow... | The Accused Products contain multiple racks arranged in angled pairs, creating a V-shaped aisle between them. | ¶71-72 | col. 19:40-49 |
| a cold air plenum between the one or more air intake openings and the front faces of the plurality of processor bays | The Accused Products have a cold air space between the intake side of the container and the front of the processor racks. | ¶74 | col. 14:20-23 |
| at least one hot air plenum between the rear faces of the plurality of processor bays and the air exhaust opening | The Accused Products have a hot air space between the rear of the processor racks and the exhaust side of the container. | ¶75 | col. 14:23-27 |
| a ventilation system that generates an air flow progressively through the one or more air intake openings, the cold air plenum, the processor bays, the at least one hot air plenum and the one or more air exhaust openings... | The Accused Products include exhaust fans that draw air through the defined intake, cold plenum, processor bays, hot plenum, and exhaust path. | ¶76 | col. 14:16-27 |
Identified Points of Contention
- Scope Questions: Claim 1 of the ’557 patent is a method claim requiring the step of "arranging the racks...to reduce turbulence in the air flow." A potential dispute may arise over whether Defendant's intent or the primary purpose of its design was to reduce turbulence, or if this is merely an inherent, unclaimed benefit of its chosen arrangement. The infringement analysis may require evidence of the functional purpose behind the accused design choices.
- Technical Questions: The complaint relies on marketing photographs to show the presence of "plenums" and other features. A central technical question may be whether the open aisles in the Accused Products function as the claimed "plenums," which the patents suggest are at least "substantially fluidically isolated." (e.g., ’414 Patent, col. 14:37-43). The degree of separation between the hot and cold air zones in the actual product will be a key factual issue.
V. Key Claim Terms for Construction
The Term: "v-shaped configuration"
- Context and Importance: This term is central to the asserted independent claims of both the ’557 and ’605 patents and describes the core structural layout of the server racks. Its construction will determine the geometric scope of the claims and whether the specific angles and arrangement seen in the accused products fall within the patent's scope.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification describes the arrangement functionally, stating that two racks in a pair "form a 'v-shaped' configuration with an end of each rack in the pair forming an angle as shown." (’414 Patent, col. 19:45-48). This language does not appear to limit the configuration to a specific angle, potentially allowing for a range of V-like arrangements.
- Evidence for a Narrower Interpretation: The figures depict a relatively symmetric V-shape. (e.g., ’414 Patent, Fig. 14, 16A). A defendant may argue that the term should be limited to the specific embodiments shown in the patent's drawings, potentially excluding asymmetric or wide-angle arrangements.
The Term: "cold air plenum" / "hot air plenum"
- Context and Importance: The existence and separation of these plenums define the patented airflow management system. The dispute will likely focus on whether the aisles in the accused product, which may be open to some degree, meet the definition of a "plenum," a term often associated with a distinct, enclosed chamber for air circulation.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claims define the plenums by their location relative to other components (e.g., "between the one or more air intake openings and the front faces of the processor bays"). (’605 Patent, Claim 1). This locational definition could support a broader interpretation that does not require full enclosure.
- Evidence for a Narrower Interpretation: The specification repeatedly refers to the hot air plenums as being "enclosed or contained," for example by a "hot air plenum barrier." (’414 Patent, col. 14:50-54). This language suggests that a "plenum" requires a physical barrier to substantially isolate it, a feature that may be contested in the accused product's design.
VI. Other Allegations
- Indirect Infringement: The complaint alleges inducement and contributory infringement for all three patents. (Compl. ¶¶53, 77, 108). For the ’557 and ’605 patents, the allegations are based on Defendant allegedly selling the Accused Products to third parties with the intent that they be used in an infringing manner. (Compl. ¶¶55, 79). For the ’414 Patent, the complaint makes a more specific allegation of inducement, asserting that Defendant sold products lacking an electrical power supply while encouraging customers to add one, thereby completing the claimed infringing combination. (Compl. ¶110).
- Willful Infringement: Willfulness is alleged for all patents-in-suit. (Compl. ¶¶58, 82, 114). The complaint alleges that Defendant had knowledge of the patent applications that matured into the ’414 and ’605 patents as early as June 2021, and received express notice of the issued patents prior to the lawsuit. (Compl. ¶¶34-36). For the ’557 patent, knowledge is alleged as of the filing of the complaint. (Compl. ¶54). The complaint also alleges intentional copying of Plaintiff's commercial product as a basis for willfulness. (Compl. ¶¶30-31).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of functional proof: can the plaintiff demonstrate that the defendant's method of assembling its product includes the step of arranging racks specifically "to reduce turbulence," as required by the ’557 method claim, or will this be seen as an inherent, uninfringed property of the final structure?
- A key evidentiary question will be one of copying and intent: the complaint alleges that the defendant directly copied the plaintiff's commercial product after seeing it at a customer site and had pre-suit knowledge of the pending and issued patents. This sets up a significant dispute over willfulness that will turn on evidence of the defendant's design process and state of mind.
- A central question of claim construction will likely be the definition of a "plenum." The case may depend on whether the aisles in the accused product, which are depicted as relatively open, meet the patents' requirements for "cold" and "hot" plenums that are functionally distinct and isolated from one another.