1:25-cv-00115
Sococo LLC v. Zoom Communications Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Sococo, LLC (Delaware)
- Defendant: Zoom Video Communications, Inc. (Delaware) and Welo, Inc. (Delaware)
- Plaintiff’s Counsel: Pennington Oliak PLLC; Ashby & Geddes
- Case Identification: 1:25-cv-00115, D. Del., 05/23/2025
- Venue Allegations: Venue is alleged to be proper in the District of Delaware because both Defendants are incorporated in Delaware and have allegedly committed acts of infringement within the district.
- Core Dispute: Plaintiff alleges that Defendants’ virtual workspace platform infringes five patents related to automated data stream switching, relationship-based presence indication, and integrated user interfaces for virtual communication environments.
- Technical Context: The technology at issue creates persistent, avatar-populated virtual spaces to facilitate more natural and spontaneous interactions for remote teams, a market segment that has gained substantial significance.
- Key Procedural History: The complaint alleges that Defendant Welo was founded by the former CEO of Plaintiff Sococo and staffed by other former Sococo engineers and executives. It further alleges that Defendant Zoom, through its venture capital arm, is a major investor in Welo, creating a factual background that may be relevant to the allegations of knowing and willful infringement.
Case Timeline
| Date | Event |
|---|---|
| 2007-10-24 | ’806 Patent Priority Date |
| 2010-01-26 | ’679 Patent Priority Date |
| 2010-08-03 | ’806 Patent Issue Date |
| 2010-09-11 | ’595 and ’304 Patents Priority Date |
| 2011-03-03 | ’851 Patent Priority Date |
| 2014-06-17 | ’304 Patent Issue Date |
| 2014-07-08 | ’595 Patent Issue Date |
| 2015-06-30 | ’851 Patent Issue Date |
| 2021-04-21 | Zoom Apps Fund program announced |
| 2021-06-01 | ’679 Patent Issue Date |
| 2022-04-04 | Welo allegedly selected for Zoom Apps Fund investment |
| 2022-05-27 | Zoom Ventures unveiled |
| 2024-Early | Zoom launched AI-powered "Zoom Workplace" platform |
| 2025-05-23 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 7,769,806 - AUTOMATED REAL-TIME DATA STREAM SWITCHING IN A SHARED VIRTUAL AREA COMMUNICATION ENVIRONMENT
The Invention Explained
- Problem Addressed: The patent’s background section describes the limitations of then-existing communication technologies, such as traditional telephony and instant messaging, and notes the desire for more immersive, interactive virtual reality systems that better simulate face-to-face interactions (Compl. ¶1; ’806 Patent, col. 1:8-33).
- The Patented Solution: The invention proposes a method for automatically managing real-time data connections (e.g., audio, video) in a shared virtual environment. It does so by storing a "virtual area specification" that contains one or more "switching rules." These rules define when to establish or terminate data streams between users based on the positions of their representative objects (avatars) in relation to geometric elements (e.g., rooms, zones) within the virtual space (’806 Patent, Abstract; col. 4:47-58). This allows interactions to begin or end based on virtual proximity, much like in a physical space.
- Technical Importance: This approach automates the creation and dissolution of communication channels based on spatial context within a virtual world, aiming to foster more spontaneous and natural collaboration than traditional "call" or "join meeting" models allow (Compl. ¶1).
Key Claims at a Glance
- The complaint asserts infringement of at least independent Claim 1 (Compl. ¶86).
- Essential elements of Claim 1 include:
- Storing a virtual area specification comprising a description of one or more switching rules, where each rule defines a connection between sources and sinks of a real-time data stream type.
- Defining at least one of the switching rules in terms of positions in relation to geometric elements of the virtual area.
- Establishing one or more real-time data stream connections between network nodes associated with respective objects (e.g., avatars).
- Basing the establishment of connections on the switching rules, the sources/sinks associated with the objects, and the positions of the objects in the virtual area.
- The complaint does not explicitly reserve the right to assert dependent claims for the ’806 patent.
U.S. Patent No. 8,775,595 - RELATIONSHIP BASED PRESENCE INDICATING IN VIRTUAL AREA CONTEXTS
The Invention Explained
- Problem Addressed: The patent identifies the need for improved systems for indicating user presence in a network environment, moving beyond simple binary states like "online" or "away" to provide richer, more contextual signals (’595 Patent, col. 1:45-48; Compl. ¶59).
- The Patented Solution: The invention discloses a method for creating a personalized communication environment by contextualizing a user's presence. It determines which other users ("communicants") have a "social network tie" that satisfies a "particular relationship predicate." It then identifies which of those communicants are present in a specific "zone" of their own virtual area. An indication of this contextualized presence is then transmitted to the user, tailoring the presence information to the user's specific social graph and relationships (’595 Patent, Abstract; col. 5:57-60).
- Technical Importance: This technology enables a more nuanced and privacy-aware presence system where the level of detail shared about a user's status can vary depending on their relationship with the observer (Compl. ¶59).
Key Claims at a Glance
- The complaint asserts infringement of at least independent Claim 1 (Compl. ¶162).
- Essential elements of Claim 1 include:
- A method in a network communications environment supporting realtime communications.
- Determining which other communicants have a social network tie with the user that satisfies a particular relationship predicate.
- Determining which of those communicants are also present in a zone of a respective other virtual area that is assigned to them.
- Transmitting to the user's network node an indication of the presence of each of those determined communicants in their respective zones.
- The complaint does not explicitly reserve the right to assert dependent claims for the ’595 patent.
U.S. Patent No. 9,069,851 - CLIENT APPLICATION INTEGRATING WEB BROWSING AND NETWORK DATA STREAM PROCESSING FOR REALTIME COMMUNICATIONS
Technology Synopsis
The patent describes a method performed by a client application that provides a single, integrated graphical user interface for both realtime communications (e.g., audio/video) and web browsing interactions. This unified interface includes controls for establishing a presence in a virtual area and for managing the exchange of both time-critical (e.g., video) and non-time-critical (e.g., text) data streams with other users, some of whom may join via a web browser (’851 Patent, Abstract; Compl. ¶66, ¶218).
Asserted Claims
At least Claim 1 and Claim 38 are asserted (Compl. ¶214, ¶332).
Accused Features
The accused functionality is the Welo graphical user interface, which allegedly provides a "single point of control" for users to engage in realtime communications while also interacting with web-based features, such as inviting a guest to join a session via a "Guest Link" web browsing application (Compl. ¶221, ¶226, ¶229).
U.S. Patent No. 8,756,304 - RELATION BASED PRESENCE INDICATING IN VIRTUAL AREA CONTEXTS
Technology Synopsis
This invention relates to methods for establishing a user's presence within a specific "zone" of a virtual area assigned to that user. An indication of this presence is then transmitted to other communicants, but this transmission is conditioned on the other communicant having a social network tie with the user that satisfies a specific "governance rule" associated with that zone (’304 Patent, Abstract; Compl. ¶72).
Asserted Claims
At least Claim 1 is asserted (Compl. ¶441).
Accused Features
The complaint alleges that Welo's system of creating a "user Welo space" (virtual area) containing "rooms" (zones) infringes. It is alleged that the presence of a user's avatar in a specific room is transmitted to other members of the Welo space based on governance rules that define membership and permissions (Compl. ¶451-454, ¶461, ¶463).
U.S. Patent No. 11,025,679 - VISUAL COMMUNICATIONS
Technology Synopsis
The patent describes a system for managing a realtime communication session within a "persistent virtual area," which can maintain presence information even after users disconnect. A key aspect is the method for interfacing a "guest communicant," operating through a web browser on a separate network node, with the ongoing communication session. This involves transmitting an interface specification to the guest that includes visual representations of the virtual area and the avatars within it, and depicting cues that dynamically reflect the communication status of participants (’679 Patent, Abstract; Compl. ¶77, ¶402).
Asserted Claims
At least Claim 1 is asserted (Compl. ¶335).
Accused Features
The accused feature is the Welo system's use of a "Guest Link" to allow external users to join a communication session via a web browser. This process allegedly involves establishing a presence for the guest in the Welo space and transmitting an interface to the guest's browser that renders the visual space and avatars with dynamic status cues (Compl. ¶375, ¶377, ¶402-404).
III. The Accused Instrumentality
Product Identification
The accused instrumentalities are the "virtual collaboration solutions" offered by Defendants, primarily the Welo application and platform, both as a standalone Software-as-a-Service ("SaaS") offering and as integrated with and sold through the Zoom platform (e.g., "Zoom Meetings," "Zoom Workplace") (Compl. ¶86, ¶90, ¶137-138).
Functionality and Market Context
The Welo platform provides a virtual workspace where each participant is represented by an avatar that can move around a visual map of rooms and social areas (Compl. ¶90). This spatial interface is designed to facilitate natural interactions and impromptu conversations. When avatars are in proximity within a designated area, real-time audio and video communications can be established (Compl. ¶90, ¶93). The complaint alleges that Welo is integrated with Zoom's media infrastructure and is offered on the "Zoom App Marketplace" as an "Essential App" (Compl. ¶23, ¶24). The complaint includes a screenshot from promotional material showing the Welo virtual space overlaid with Zoom's video conferencing interface (Compl. ¶44). The complaint further alleges that Zoom is the leading provider of video conferencing services, with a market share over 50% (Compl. ¶78).
IV. Analysis of Infringement Allegations
7,769,806 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a method of switching real-time data stream connections between network nodes sharing a virtual area, the method comprising: storing a virtual area specification comprising a description of one or more switching rules... | Welo provides a virtual collaboration environment where users, represented by avatars, interact. The system stores user settings, configurations, and preferences which allegedly embody the "virtual area specification" containing "switching rules." | ¶89-93 | col. 4:47-50 |
| ...wherein at least one of the one or more switching rules defines the respective connection between sources of a respective real-time data stream type and sinks of the real-time data stream type in terms of positions in relation to geometric elements of the virtual area... | The alleged switching rules control connections based on the position of avatars relative to geometric elements like rooms, tables, and seats within the Welo space. For example, a rule can be set to automatically turn off a user's microphone and camera if they are alone in a room for a minute. The complaint provides a screenshot of a user's avatar moving to enter a conference room. (Compl. ¶97). | ¶96, ¶102, ¶112 | col. 4:54-58 |
| ...establishing one or more real-time data stream connections between network nodes associated with respective objects each of which is associated with at least one of a source and a sink of one or more of the real-time data stream types... | Welo establishes real-time audio, video, and chat connections between the computers of different users. Each user's computer acts as a network node associated with an avatar (object) and has sources (microphone, camera) and sinks (speakers, display). The complaint shows a moderator's "User Menu" for muting another user's microphone. (Compl. ¶104). | ¶106, ¶108-110 | col. 5:1-7 |
| ...wherein the establishing is based on the one or more switching rules, the respective sources and sink associated with the objects, and respective positions of the objects in the virtual area. | The establishment of these data stream connections is allegedly based on the stored switching rules (e.g., media settings for entering a room), the users' sources/sinks, and the relative positions of the users' avatars within the Welo virtual space. | ¶111 | col. 5:7-12 |
Identified Points of Contention
- Scope Questions: A central question may be whether the user-configurable "settings, configurations, and preferences" alleged in the complaint (Compl. ¶92) legally constitute the "switching rules" required by the claim. The dispute could turn on whether a "rule" must be a predetermined, programmatic constraint or if it can be a user-selectable setting.
- Technical Questions: The complaint alleges that establishing connections is based on avatar positions (Compl. ¶111). A factual question for the court will be to determine the technical mechanism of connection. Does the system automatically initiate a data stream based on geometric proximity as defined by a rule, or does the user manually initiate the connection (e.g., by double-clicking a room), which then causes the avatar to move as a visual confirmation of the user's action?
8,775,595 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| In a network communications environment supporting realtime communications..., a method comprising: determining each of one or more of the other communicants...who has a social network tie with the user that satisfies a particular relationship predicate... | The Welo collaboration system is a network environment for realtime communications. The "social network tie" is allegedly satisfied by users being members of the same "Welo space," and the "relationship predicate" is met because both the user and the other communicant are members of that space under its governance rules. | ¶167-170, ¶177 | col. 2:53-58 |
| ...and who is present in a zone of a respective other virtual area that is assigned to the other communicant. | Welo determines which other members are present in a "room" (the claimed "zone") within the shared "Welo space" (the claimed "virtual area"). Each Welo space is created by and assigned to a respective user or communicant. | ¶171-172 | col. 4:2-6 |
| transmitting to the network node operated by the user a respective indication of presence of each of the determined other communicants in each of the one or more zones of the respective other virtual areas. | The Welo "Space Roster" feature displays a list of users and their locations (e.g., "Users in your room (1)," "Users in the other rooms (0)"), thereby transmitting this presence information to the user's network node. A visual of the Space Roster is provided. (Compl. ¶99). | ¶178, ¶184 | col. 4:25-29 |
Identified Points of Contention
- Scope Questions: The analysis may focus on whether "membership" in a Welo space (Compl. ¶170) meets the claim requirement of a "social network tie that satisfies a particular relationship predicate." This raises the question of whether simple co-participation in a workspace constitutes the type of pre-existing "relationship" contemplated by the patent.
- Technical Questions: The claim recites presence in a "respective other virtual area that is assigned to the other communicant." The complaint describes users creating and being members of a shared "Welo space" (Compl. ¶170, ¶172). A key factual question will be whether the single, shared Welo space can be interpreted as comprising multiple, distinct "other virtual areas," each assigned to a different communicant, as the claim language may suggest.
V. Key Claim Terms for Construction
Term: "switching rules" (’806 Patent, Claim 1)
Context and Importance
This term is foundational to the ’806 patent’s automation concept. The infringement case will depend significantly on whether Welo’s system of user-configurable "settings" and "preferences" for media handling (Compl. ¶92, ¶112) can be construed to be the claimed "switching rules." Practitioners may focus on this term because if it is construed narrowly to require pre-defined, non-user-editable logic, the infringement case could be weakened.
Intrinsic Evidence for Interpretation
- Evidence for a Broader Interpretation: The patent specification describes the rules functionally as defining a connection "in terms of positions in the virtual area" (’806 Patent, col. 4:49-50) and "in terms of positions in relation to geometric elements of the virtual area" (’806 Patent, col. 4:56-58). This functional language could support a broader interpretation where any system logic, including user-selected settings, that links position to connectivity qualifies as a "rule."
- Evidence for a Narrower Interpretation: The claim requires the "virtual area specification" to comprise a description of the rules, suggesting the rules are an inherent part of the environment's definition. The provided XML-based examples in the patent specification show rules defined with specific tags and parameters within the environment's code, which could support a narrower construction requiring a more formally defined, programmatic rule structure (’806 Patent, col. 11:23-43).
Term: "social network tie" (’595 Patent, Claim 1)
Context and Importance
The infringement theory for the ’595 patent hinges on the allegation that co-membership in a Welo space constitutes a "social network tie" (Compl. ¶170, ¶177). The viability of this theory depends entirely on the construction of this term.
Intrinsic Evidence for Interpretation
- Evidence for a Broader Interpretation: The patent does not appear to provide an explicit definition for "social network tie" in the specification, which could lead a court to apply its plain and ordinary meaning. This might encompass any form of social connection, including being members of the same defined online group or workspace.
- Evidence for a Narrower Interpretation: The patent is titled "RELATIONSHIP BASED PRESENCE INDICATING..." and repeatedly discusses "relationship predicate[s]" and "governance rule[s]" in connection with the tie (’595 Patent, Abstract). This context suggests that the "tie" may require a more specific, defined relationship between individuals (e.g., friend, colleague, family) rather than just concurrent membership in a virtual location.
VI. Other Allegations
Indirect Infringement
The complaint alleges induced infringement against both Defendants, stating they provide "explicit instructions on how to set up, operate and use the Welo application through its 'Welo User Guide' and other instructions" that allegedly lead customers to directly infringe the patents (Compl. ¶86, ¶164).
Willful Infringement
Willfulness is alleged based on both pre- and post-suit knowledge. The complaint alleges pre-suit knowledge stems from Welo being founded and staffed by former Sococo executives and engineers, including its former CEO, who would have been aware of Sococo's technology and patent portfolio. It further alleges Zoom gained knowledge through its due diligence process when its venture arm invested in Welo (Compl. ¶143-144, ¶192-193).
VII. Analyst’s Conclusion: Key Questions for the Case
Definitional Scope
A primary issue will be whether the core concepts of the accused Welo product map onto the key limitations of the patents. Can Welo’s user-configurable "settings" be construed as the automated, position-based "switching rules" required by the ’806 patent? Similarly, does simple co-membership in a Welo workspace satisfy the ’595 patent’s requirement of a "social network tie" that fulfills a "relationship predicate"?
Technical Causation
A key evidentiary question will be one of technical operation. Does the complaint provide sufficient basis to show that the accused system automatically establishes connections because of an avatar's geometric position, as the '806 patent claims, or are connections primarily user-initiated acts that are merely visualized by an avatar's movement?
Willful Infringement and Knowledge
Given the detailed allegations regarding the employment history of Welo's founders and Zoom's investment, a central question for the willfulness claim will be the extent to which Plaintiff can prove Defendants had pre-suit knowledge of the specific patents-in-suit and their applicability to the accused Welo platform.