DCT

1:15-cv-00611

TQ Delta LLC v. Comcast Cable Communications LLC

Log In

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:15-cv-00611, D. Del., 09/09/2015
  • Venue Allegations: Venue is alleged as proper in the District of Delaware because Defendant Comcast Cable Communications, LLC is a Delaware company and because Defendants conduct regular business in the district.
  • Core Dispute: Plaintiff alleges that Defendant’s products and services that operate in accordance with the Multimedia over Coax Alliance (MoCA) standards infringe eight patents related to multicarrier communication systems.
  • Technical Context: The technology at issue involves methods for improving the speed, reliability, and efficiency of data transmission over coaxial cables, which form the backbone of in-home networks for services like multi-room DVR and high-speed internet.
  • Key Procedural History: The complaint details pre-suit licensing negotiations, alleging that Plaintiff first contacted Defendant regarding its MoCA patent portfolio in December 2014, provided detailed infringement claim charts in June 2015, and met with Defendant later that month before discussions were terminated by Defendant in July 2015. This history is cited to support allegations of pre-suit knowledge and willful infringement.

Case Timeline

Date Event
1998-01-26 Earliest Priority Date for ’404 and ’268 Patents
1999-11-09 Earliest Priority Date for ’369, ’158, and ’243 Patents
2000-01-07 Earliest Priority Date for ’430, ’412, and ’956 Patents
2004-01-01 Multimedia over Coax Alliance founded
2005-11-01 U.S. Patent No. 6,961,369 issues
2010-11-16 U.S. Patent No. 7,835,430 issues
2012-08-07 U.S. Patent No. 8,238,412 issues
2013-04-30 U.S. Patent No. 8,432,956 issues
2013-12-17 U.S. Patent No. 8,611,404 issues
2014-05-06 U.S. Patent No. 8,718,158 issues
2014-12-19 TQ Delta sends initial licensing letter to Comcast
2015-01-08 Comcast responds to TQ Delta's initial letter
2015-04-21 U.S. Patent No. 9,014,243 issues
2015-06-05 Comcast accesses detailed claim charts provided by TQ Delta
2015-06-24 In-person licensing meeting between TQ Delta and Comcast
2015-07-16 Comcast sends letter terminating licensing discussions
2015-07-28 U.S. Patent No. 9,094,268 issues
2015-09-09 Complaint filed

II. Technology and Patent(s)-in-Suit Analysis

No probative visual evidence provided in complaint.

U.S. Patent No. 6,961,369 - "System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System," issued November 1, 2005

The Invention Explained

  • Problem Addressed: The patent's background section explains that in multicarrier communication systems, such as Discrete Multitone Modulation (DMT), if the phase of the data-carrying signals is not sufficiently random, the transmission signal can exhibit a high peak-to-average power ratio (PAR). High PAR can lead to signal distortion ("clipping"), increased power consumption, and require more expensive, linear components. (Compl. Ex. 1, ’369 Patent, col. 2:11-26).
  • The Patented Solution: The invention proposes a "phase scrambler" that modifies the phase of each carrier signal before data is modulated onto it. It computes a phase shift for each carrier based on a value—such as one derived from a pseudo-random number generator or the carrier's own index number—that is independent of the input data bits. This computed shift is then combined with the phase derived from the data modulation, resulting in a final transmitted signal with a more random phase distribution and, consequently, a lower PAR. (Compl. Ex. 1, ’369 Patent, Abstract; col. 5:36-41).
  • Technical Importance: By actively randomizing carrier phases, this technique aimed to make multicarrier systems like DSL more power-efficient and robust, facilitating higher data rates over existing physical media with less complex hardware. (Compl. Ex. 1, ’369 Patent, col. 2:3-10).

Key Claims at a Glance

  • The complaint asserts infringement of "one or more claims" without specifying them (Compl. ¶36). Independent claim 1 is a representative method claim.
  • Essential elements of Claim 1 include:
    • Generating an array of pseudo-random numbers.
    • Determining a phase shift for each carrier signal by multiplying a value from the array by a constant.
    • Adding the determined phase shift to the phase characteristic of each carrier signal.
  • The complaint does not explicitly reserve the right to assert dependent claims for this patent.

U.S. Patent No. 8,718,158 - "System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System," issued May 6, 2014

The Invention Explained

  • Problem Addressed: Similar to the ’369 Patent, this patent addresses the problem of high PAR in multicarrier communication systems that arises when carrier phases are not random, which can degrade system performance. (Compl. Ex. 2, ’158 Patent, col. 1:12-25).
  • The Patented Solution: The invention describes a method for scrambling carrier phases by associating each carrier with a value determined independently of the data to be transmitted, for instance, from a pseudo-random number generator. This value is used to calculate a phase shift that is then applied to the carrier, ensuring the resulting transmitted signal has a more random phase characteristic and thus a reduced PAR. (Compl. Ex. 2, ’158 Patent, Abstract; col. 4:38-51).
  • Technical Importance: The technology provides a method to enhance the efficiency and reliability of high-speed data transmission systems by mitigating the adverse effects of high peak power levels in the transmitted signal. (Compl. Ex. 2, ’158 Patent, col. 2:5-10).

Key Claims at a Glance

  • The complaint asserts infringement of "one or more claims" without specification (Compl. ¶44). Independent claim 1 is a representative method claim.
  • Essential elements of Claim 1 include:
    • Associating a carrier signal with a value determined by a pseudo-random number generator, where the value is independent of any data bit carried by the signal.
    • Determining a phase shift for the carrier signal based on that associated value.
    • Modulating at least one data bit onto that carrier signal and at least one bit onto a second carrier signal.
  • The complaint does not explicitly reserve the right to assert dependent claims for this patent.

U.S. Patent No. 9,014,243 - "System and Method for Scrambling Using a Bit Scrambler and a Phase Scrambler," issued April 21, 2015

This patent, related to the ’369 and ’158 patents, discloses a system that combines two techniques to reduce PAR. It uses a bit scrambler to randomize the input data stream and a phase scrambler to randomize the phase of the carriers, providing a dual-layer approach to ensure the final transmitted signal has a low PAR. (Compl. ¶50-51).

  • Asserted Claims: "one or more claims" (Compl. ¶52).
  • Accused Features: Comcast's MoCA Products that operate in accordance with MoCA 1.0, 1.1, and/or 2.0 standards are accused of infringement. (Compl. ¶51).

U.S. Patent No. 7,835,430 - "Multicarrier Modulation Messaging for Frequency Domain Received Idle Channel Noise Information," issued November 16, 2010

This patent describes a method for operating a multicarrier system in a diagnostic mode. This mode allows a transceiver to transmit messages containing specific test information, such as an array representing idle channel noise in the frequency domain, to another transceiver for analysis and troubleshooting. (Compl. ¶58-59).

  • Asserted Claims: "one or more claims" (Compl. ¶60).
  • Accused Features: Comcast's MoCA Products that operate in accordance with at least the MoCA 2.0 standard are accused. (Compl. ¶59).

U.S. Patent No. 8,238,412 - "Multicarrier Modulation Messaging for Power Level per Subchannel Information," issued August 7, 2012

This patent, related to the ’430 patent, discloses a system for communicating diagnostic information between transceivers. The invention focuses on transmitting messages that contain an array representing the power level on a per-subchannel basis, which can be used for performance monitoring and optimization. (Compl. ¶66-67).

  • Asserted Claims: "one or more claims" (Compl. ¶68).
  • Accused Features: Comcast's MoCA Products that operate in accordance with at least the MoCA 2.0 standard are accused. (Compl. ¶67).

U.S. Patent No. 8,432,956 - "Multicarrier Modulation Messaging for Power Level per Subchannel Information," issued April 30, 2013

This patent is a continuation related to the ’412 patent and addresses a similar diagnostic messaging capability. It describes a method for transceivers to exchange information about the power levels of individual subchannels within the multicarrier system. (Compl. ¶74-75).

  • Asserted Claims: "one or more claims" (Compl. ¶76).
  • Accused Features: Comcast's MoCA Products that operate in accordance with at least the MoCA 2.0 standard are accused. (Compl. ¶75).

U.S. Patent No. 8,611,404 - "Multicarrier Transmission System With Low Power Sleep Mode and Rapid-On Capability," issued December 17, 2013

This patent describes a power-saving feature for transceivers. It discloses a method for a device to enter a low-power "sleep mode" to conserve energy and then quickly return to full operational capability ("rapid-on") without undergoing a full, time-consuming re-initialization sequence. (Compl. ¶82-83).

  • Asserted Claims: "one or more claims" (Compl. ¶84).
  • Accused Features: Comcast's MoCA Products that operate in accordance with at least the MoCA 2.0 standard are accused. (Compl. ¶83).

U.S. Patent No. 9,094,268 - "Multicarrier Transmission System With Low Power Sleep Mode and Rapid-On Capability," issued July 28, 2015

This patent is a continuation related to the ’404 patent and covers a similar power management technology. The invention allows a multicarrier transceiver to idle with reduced power consumption and then rapidly restore full transmission and reception capabilities when needed, avoiding a lengthy re-initialization. (Compl. ¶90-91).

  • Asserted Claims: "one or more claims" (Compl. ¶92).
  • Accused Features: Comcast's MoCA Products that operate in accordance with at least the MoCA 2.0 standard are accused. (Compl. ¶91).

III. The Accused Instrumentality

Product Identification

  • The accused instrumentalities are collectively referred to as "MoCA Products." These include Comcast's digital cable and TV services, the X1 Entertainment Operating System, the AnyRoom® DVR service, Comcast's Internet service, and the associated hardware such as set-top boxes (e.g., Pace Xi3, Arris XG1), gateways, routers, and modems. (Compl. ¶15, ¶37).

Functionality and Market Context

  • The complaint alleges these products and services operate in accordance with the MoCA 1.0, 1.1, and/or 2.0 standards, which use a building's existing coaxial cable wiring to create a high-speed, in-home network. (Compl. ¶9, ¶15). This technology is described as enabling key features of Comcast's services, such as streaming recorded content from a main DVR hub to other "client-only" set-top boxes throughout a home. (Compl. ¶37). The complaint asserts that MoCA is a "worldwide standard" adopted by major cable operators and that Comcast was a founder of the MoCA Alliance and involved in the development of its standards. (Compl. ¶11-12, ¶14).

IV. Analysis of Infringement Allegations

The complaint does not contain claim charts or detailed technical mappings. The infringement theory is predicated on the allegation that products operating in compliance with the MoCA standards necessarily practice the claimed inventions. The following chart summarizes this theory for the lead asserted patent.

U.S. Patent No. 6,961,369 Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
In multicarrier modulation communications utilizing a plurality of QAM-modulated carrier signals...a method of randomizing the phase characteristics of the carriers comprising: generating an array of pseudo-random numbers; Comcast's MoCA Products allegedly perform multicarrier modulation over coaxial cables and, in accordance with MoCA standards, generate non-data-dependent values, such as pseudo-random numbers, to manage signal characteristics. (inferred) ¶35, ¶37 col. 5:59-61
determining a phase shift for each carrier signal by multiplying a value from the array of pseudo-random numbers times (π/m) mod 2π, where m is an integer; and The MoCA Products allegedly compute a phase shift for each data carrier using the generated numbers according to a predetermined formula required by the MoCA standards to randomize the signal phase. (inferred) ¶35, ¶37 col. 6:58-65
adding the determined phase shift for each carrier signal to the phase characteristic of each carrier signal. This computed phase shift is allegedly combined with the data-modulated phase of each carrier signal before transmission through the in-home coaxial network, as required by the MoCA standards. (inferred) ¶35, ¶37 col. 5:36-39

Identified Points of Contention

  • Scope Questions: The complaint's infringement theory rests on the assertion that compliance with the MoCA standards equates to infringement. A central question for the court will be whether the MoCA standards, in fact, require the specific methods of generating and applying phase shifts as claimed in the ’369 and ’158 patents. The complaint does not cite to any specific section of the MoCA standards to support this allegation.
  • Technical Questions: What evidence does the complaint provide that Comcast's products actually implement the claimed technology? The allegations are based on the products' compliance with a standard, rather than on direct analysis, such as reverse engineering or technical documentation of the accused products themselves.

V. Key Claim Terms for Construction

For the ’369 and ’158 Patents

  • The Term: "pseudo-random number generator" / "pseudo-random numbers"
  • Context and Importance: The definition of this term is critical because the core of the invention is the use of a data-independent sequence to scramble carrier phases. A dispute may arise over whether the sequences potentially used in the MoCA standards qualify as "pseudo-random" in the context of the patent, or if they are better described as deterministic or predictable sequences that fall outside the claim scope.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification suggests that the value used for scrambling can be derived from various "predefined parameters," including "a DMT carrier number, a DMT symbol count, a DMT superframe count, a DMT hyperframe count, and the like," not just a classic pseudo-random number generator. (Compl. Ex. 1, ’369 Patent, col. 5:61-64). This may support a construction that covers any sequence not derived from the user data itself.
    • Evidence for a Narrower Interpretation: The primary embodiment described is a "pseudo-random number generator (pseudo-RNG)." (Compl. Ex. 1, ’369 Patent, col. 5:60). This could support an argument that the term should be limited to specific algorithms designed to exhibit statistical randomness, potentially excluding simpler, more predictable sequences like a symbol count.

VI. Other Allegations

Indirect Infringement

The complaint alleges induced infringement, stating that Defendants provide customers with MoCA Products, instructions, and support with the intent to encourage them to use the products in their normal, infringing mode of operation (i.e., according to MoCA standards). (Compl. ¶36, ¶44). It also alleges contributory infringement, asserting the MoCA Products are especially made for infringing use, are material to practicing the invention, and are not staple articles of commerce suitable for substantial non-infringing use. (Compl. ¶39, ¶47).

Willful Infringement

The complaint alleges willful infringement based on both pre-suit and post-suit knowledge. Pre-suit knowledge is alleged to have been established through a series of licensing communications beginning in December 2014, which included Plaintiff providing Defendant with detailed infringement claim charts for several of the patents-in-suit. (Compl. ¶24, ¶26, ¶29). Post-suit knowledge is alleged based on the filing and service of the complaint. (Compl. ¶23). In the alternative, the complaint alleges Defendants were willfully blind to the existence and infringement of the asserted patents. (Compl. ¶31).

VII. Analyst’s Conclusion: Key Questions for the Case

  • A core issue will be one of standard essentiality: can Plaintiff demonstrate that compliance with the MoCA 1.0, 1.1, and/or 2.0 standards, as practiced by Comcast's products, necessarily infringes the asserted claims? The outcome may depend on whether the standards mandate the specific technical implementations claimed in the patents or merely provide optional guidelines that could be implemented in non-infringing ways.
  • A second central question will be one of evidence and proof: beyond asserting compliance with a standard, what direct technical evidence will be required to show that the internal operations of Comcast's accused hardware and software (e.g., the X1 platform's chipsets and firmware) actually perform the claimed methods for phase scrambling, diagnostic messaging, and power management?
  • A third issue will relate to damages and scope: given the diverse technologies asserted—ranging from fundamental signal processing to diagnostic modes and power-saving features—how will damages be apportioned across the different patents and accused features, and can Plaintiff establish that the accused MoCA 2.0 features read on patents with priority dates from as early as 1998?