DCT

1:20-cv-01051

Uniloc 2017 LLC v. Nexon Co Ltd

I. Executive Summary and Procedural Information

Parties & Counsel:
- Plaintiff: Uniloc 2017 LLC (Delaware)
- Defendant: Nexon Co, Ltd (Japan) and Nexon Korean Corporation (Korea)
- Plaintiff’s Counsel: Etheridge Law Group, PLLC
Case Identification: 1:20-cv-01051, W.D. Tex., 06/12/2019
Venue Allegations: Venue is alleged on the basis that Defendants are alien entities subject to suit in any U.S. judicial district and have provided online services to subscribers residing in the Western District of Texas.
Core Dispute: Plaintiff alleges that Defendant’s Nexon Launcher software licensing and delivery system infringes two patents related to the network-based management and distribution of configurable application programs.
Technical Context: The technology concerns client-server systems for distributing and managing software applications, which includes controlling user access and applying user-specific and administrator-defined configurations.
Key Procedural History: The complaint alleges that Defendants were put on notice of the asserted patents via a prior lawsuit, Uniloc USA, Inc. et al v. Nexon America, Inc., filed in the Eastern District of Texas in 2017. This prior litigation is cited as a basis for willfulness, suggesting an earlier date of alleged knowledge.

Case Timeline

Date	Event
1998-12-14	Priority Date for U.S. 6,324,578 and U.S. 7,069,293
2001-11-27	U.S. Patent 6,324,578 Issued
2006-06-27	U.S. Patent 7,069,293 Issued
2017-04-12	Filing of prior case Uniloc v. Nexon America (2:17-cv-281) establishing alleged notice
2019-06-12	Complaint Filing Date

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

U.S. Patent No. 6,324,578 - "Methods, Systems and Computer Program Products for Management of Configurable Application Programs on a Network"

Patent Identification: U.S. Patent No. 6,324,578, "Methods, Systems and Computer Program Products for Management of Configurable Application Programs on a Network," issued November 27, 2001.

The Invention Explained

Problem Addressed: The patent addresses the challenge of managing software in distributed, heterogeneous network environments where users move between different workstations but require a consistent experience. Existing solutions were described as difficult to manage, often requiring manual configuration at each workstation and lacking a seamless way to apply both user preferences and centrally-controlled administrative policies (’578 Patent, col. 1:46 - col. 3:21).
The Patented Solution: The invention proposes a system where an "application launcher" program on a client station and a "configuration manager" program available to an administrator work in concert with a network server. When a user requests to run an application via the launcher, the server executes the application using a combination of the user's saved preferences (a "user set") and system-wide preferences set by an administrator (an "administrator set"), thereby providing a customized yet centrally managed application instance (’578 Patent, col. 4:21-39).
Technical Importance: This technology aimed to provide centralized administration and a consistent user experience for "roaming" users in complex corporate networks, a key challenge during the period of its invention.

Key Claims at a Glance

The complaint asserts at least independent claim 1 (Compl. ¶24).
The essential elements of independent claim 1 are:
- installing an application program having a plurality of configurable preferences and authorized users on a server coupled to the network;
- distributing an application launcher program associated with the application program to a client coupled to the network;
- obtaining a user set of the plurality of configurable preferences associated with one of the plurality of authorized users executing the application launcher program;
- obtaining an administrator set of the plurality of configurable preferences from an administrator; and
- executing the application program using the obtained user set and the obtained administrator set of the plurality of configurable preferences responsive to a request from the one of the plurality of authorized users.

U.S. Patent No. 7,069,293 - "Methods, Systems and Computer Program Products for Distribution of Application Programs to a Target Station on a Network"

Patent Identification: U.S. Patent No. 7,069,293, "Methods, Systems and Computer Program Products for Distribution of Application Programs to a Target Station on a Network," issued June 27, 2006.

The Invention Explained

Problem Addressed: As a divisional of the application leading to the ’578 patent, this patent addresses the same general problem of centralized software management in a network environment (’293 Patent, col. 1:24 - col. 3:41).
The Patented Solution: This invention focuses specifically on the automated distribution and registration process. It describes a method where a central network management server prepares a "file packet" for an application. This packet includes a "segment configured to initiate registration operations" at a target on-demand server. The central server then distributes this packet to the target server, which uses the registration segment to automatically install and make the application available for client use (’293 Patent, col.5:36-44).
Technical Importance: The invention provides a mechanism for automating the deployment of software to on-demand servers, streamlining the process of making new or updated applications available across a managed network.

Key Claims at a Glance

The complaint asserts at least independent claim 1 (Compl. ¶36).
The essential elements of independent claim 1 are:
- providing an application program to be distributed to the network management server;
- specifying a source directory and a target directory for distribution of the application program;
- preparing a file packet associated with the application program and including a segment configured to initiate registration operations for the application program at the target on-demand server; and
- distributing the file packet to the target on-demand server to make the application program available for use by a user at a client.

III. The Accused Instrumentality

Product Identification: The accused instrumentality is the "Nexon Launcher," which the complaint identifies as a "software licensing and delivery system" (Compl. ¶13).
Functionality and Market Context:
- The Nexon Launcher is described as a client-side application that provides a "streamlined approach for installing, updating and playing" Nexon's online games, such as MapleStory and Combat Arms (Compl. ¶14, ¶16, ¶18). The system operates in a client-server environment, where the launcher software on a user's device communicates with a "backend server architecture" (Compl. ¶24).
- This communication facilitates user authentication, as shown in a screenshot of a login interface (Compl. ¶17). A screenshot depicting a download in progress from an akamaitechnologies.com address illustrates the client-server distribution of game files, referred to as "patching" (Compl. ¶21). The launcher presents a graphical interface with icons for various games, which users can select to play (Compl. ¶16, ¶19). The complaint alleges this system is central to Nexon's business of delivering its online games to its customers.

IV. Analysis of Infringement Allegations

’578 Patent Infringement Allegations

Claim Element (from Independent Claim 1)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
installing an application program having a plurality of configurable preferences and authorized users on a server coupled to the network;	Nexon’s backend server architecture allows for installing application programs (games) which are then made available to authorized users on the network.	¶24	col. 4:25-28
distributing an application launcher program associated with the application program to a client coupled to the network;	Nexon distributes the "Nexon Launcher" program to users for installation on their client devices. A screenshot shows a webpage with a prominent "Download Nexon Launcher" button.	¶14, ¶24	col. 4:28-30
obtaining a user set of the plurality of configurable preferences... from one of the... authorized users executing the application launcher program;	The complaint alleges that the system allows a user to obtain a set of configurable preferences.	¶24	col. 4:30-33
obtaining an administrator set of the plurality of configurable preferences from an administrator;	The complaint alleges that the system allows for obtaining an administrator set of configurable preferences.	¶24	col. 4:33-35
executing the application program using the obtained user set and the obtained administrator set... responsive to a request from a... user.	The Nexon Launcher executes a game in response to a user request, such as clicking a "PLAY" button. The complaint alleges this execution uses both user and administrator preferences.	¶19, ¶24	col. 4:35-39

’293 Patent Infringement Allegations

Claim Element (from Independent Claim 1)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
providing an application program to be distributed to the network management server;	Nexon's backend server architecture provides application programs (games) for distribution to a network server.	¶36	col. 18:28-31
specifying a source directory and a target directory for distribution of the application program;	The system allegedly specifies source and target directories for the program to be distributed. A screenshot of network activity shows a download originating from an Akamai server address.	¶21, ¶36	col. 18:32-34
preparing a file packet associated with the application program and including a segment configured to initiate registration...;	The system allegedly prepares a file packet that includes a segment to initiate registration. A screenshot shows the download of a specific file, `BlackCipher.aes.ea565606.nxaz`.	¶21, ¶36	col. 18:35-39
distributing the file packet to the target on-demand server to make the application program available for use by a user at a client.	The system distributes the file packet to make the game available for use by a client user, as demonstrated by the launcher's function of downloading and updating games.	¶21, ¶36	col. 18:40-43

Identified Points of Contention:
- Evidentiary Questions: The complaint makes conclusory allegations that the accused system obtains "a user set" and "an administrator set" of preferences as required by the ’578 patent, but provides no specific factual support, such as screenshots of configuration menus or descriptions of what these preferences are (Compl. ¶24). The case may depend on whether discovery uncovers evidence of such a two-tiered preference system.
- Technical Questions: For the ’293 patent, a key question is what evidence exists that the accused "file packet" contains a "segment configured to initiate registration" as described in the patent (Compl. ¶36). The patent appears to contemplate a specific registration process (e.g., using a PMImport script) that is not detailed in the complaint's allegations.
- Scope Questions: A potential dispute exists over whether the "Nexon Launcher," a consumer-facing game platform, is equivalent to the "application launcher" and "management system" described in the patents, which appear to be directed at enterprise software management in a corporate IT environment.

V. Key Claim Terms for Construction

The Term: "configurable preferences" (’578 Patent, Claim 1)
- Context and Importance: This term is central to the infringement theory for the ’578 patent. Its construction will determine what type of user-configurable settings and administrator-level controls are required to meet the claim limitations. The complaint’s lack of detail on this element suggests its definition will be a primary point of dispute.
- Intrinsic Evidence for Interpretation:
  - Evidence for a Broader Interpretation: The patent does not explicitly limit the term, referring generally to a "plurality of configurable preferences" which could be argued to encompass any user-settable options (’578 Patent, col. 15:6-8).
  - Evidence for a Narrower Interpretation: The specification provides specific examples such as "keyboard mapping, screen configuration and destination host preference values" and distinguishes between user-settable and administrator-settable preferences, suggesting the term requires more than just general application settings (’578 Patent, col. 9:15-18).
The Term: "segment configured to initiate registration" (’293 Patent, Claim 1)
- Context and Importance: This term defines a key technical step in the patented distribution method. Infringement of the ’293 patent will likely depend on whether the accused file distribution process includes a component that performs this specific function. Practitioners may focus on this term because it appears to require a specific technical mechanism beyond simple file copying.
- Intrinsic Evidence for Interpretation:
  - Evidence for a Broader Interpretation: The term could be interpreted broadly to mean any part of a software package that causes it to be installed or registered with the operating system or a launcher application.
  - Evidence for a Narrower Interpretation: The specification describes this segment in detail, including an embodiment with an "import data file and a call to an import program executing on the target on-demand server" to register the application with a "profile management list" (’293 Patent, col. 21:39-45). This suggests a specific, structured registration process.

VI. Other Allegations

Indirect Infringement: The complaint alleges inducement, stating that Nexon provides instructions to users on how to use the infringing system via "training videos, demonstrations, brochures, and installation and user guides" (Compl. ¶26, ¶38). It further alleges contributory infringement on the basis that the Nexon Launcher software is a material part of the claimed invention and is not a staple article of commerce (Compl. ¶28, ¶40).
Willful Infringement: Willfulness is alleged based on notice of the patents-in-suit purportedly provided to a related Nexon entity during a prior litigation, Uniloc USA, Inc. et al v. Nexon America, Inc., Case No. 2:17-cv-281 (E.D. Tex.) (Compl. ¶30, ¶42). This allegation establishes a basis for pre-suit knowledge and intent.

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

A core issue will be one of evidentiary sufficiency: Can Plaintiff substantiate its conclusory allegations that the accused Nexon Launcher system implements the distinct "user set" and "administrator set" of "configurable preferences" as specifically required by the ’578 patent’s claims?
A key technical question will be one of functional operation: Does the accused software distribution process for the Nexon Launcher involve a "file packet" that contains a "segment configured to initiate registration" as that phrase is defined by the ’293 patent, or is there a material difference in the technical mechanism of installation and registration?
The case may also turn on a fundamental question of definitional scope: Can the claims of patents written in the context of enterprise IT software management be construed to cover a consumer-facing video game distribution platform, or does the nature of the accused system place it outside the patents' intended scope?