DCT
1:24-cv-06356
Virtual Creative Artists LLC v. Soundcloud Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Virtual Creative Artists, LLC (Delaware)
- Defendant: Soundcloud Inc. (Delaware)
- Plaintiff’s Counsel: Loaknauth Law, P.C.
- Case Identification: 1:24-cv-06356, S.D.N.Y., 08/22/2024
- Venue Allegations: Plaintiff alleges venue is proper in the Southern District of New York because Defendant maintains places of business in the district and has allegedly committed acts of infringement within the district.
- Core Dispute: Plaintiff alleges that Defendant’s Soundcloud online audio distribution platform infringes two patents related to systems and methods for creating and distributing multimedia content based on submissions received via an electronic exchange.
- Technical Context: The patents-in-suit describe a framework for a crowdsourcing platform where users can submit, collaborate on, and rate multimedia content, a concept foundational to many modern content-sharing and social media services.
- Key Procedural History: The complaint notes that the asserted claims in both patents overcame patent eligibility rejections under 35 U.S.C. § 101 during their respective prosecutions before the U.S. Patent and Trademark Office. The patents claim priority back to a 1999 provisional application, indicating a long prosecution history.
Case Timeline
| Date | Event |
|---|---|
| 1999-05-05 | Earliest Priority Date for ’480 & ’665 Patents |
| 2016-10-25 | U.S. Patent No. 9,477,665 Issues |
| 2016-11-22 | U.S. Patent No. 9,501,480 Issues |
| 2024-08-22 | Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 9,501,480 - "Revenue-Generating Electronic Multi-Media Exchange and Process of Operating Same"
The Invention Explained
- Problem Addressed: The patent describes the logistical challenges faced by media companies in the late 1990s when trying to manage a high volume of unsolicited artistic submissions (e.g., scripts, songs). It identifies a need for a structured, electronic "open exchange" to facilitate the submission, review, and development of such creative works (Compl. ¶ 11; ’480 Patent, col. 2:41-65).
- The Patented Solution: The invention provides a computer system comprised of four distinct but interconnected server subsystems. An "electronic media submissions server subsystem" receives and stores content from users. An "electronic multimedia creator server subsystem" uses a filter to select and retrieve submissions. An "electronic release subsystem" makes the developed content available to an audience. Finally, an "electronic voting subsystem" allows users to rate or vote on the submitted or released content (Compl. ¶¶ 12-18; ’480 Patent, Abstract). The overall process is depicted in flowcharts such as those in Figures 5A-5D (’480 Patent, FIG. 5A-5D).
- Technical Importance: The complaint asserts that this system architecture offered a novel solution for collaborative online content development, predating modern crowdsourcing platforms (Compl. ¶ 11).
Key Claims at a Glance
- The complaint asserts infringement of independent claim 1 (Compl. ¶ 22).
- Claim 1 requires a system comprising:
- An electronic media submissions server subsystem with a database and a submissions interface.
- An electronic multimedia creator server subsystem, operatively coupled to the submissions subsystem, configured with a filter to select and retrieve submissions to develop multimedia content based on user attributes.
- An electronic release subsystem, operatively coupled to the creator subsystem, configured to make the multimedia content available for viewing.
- An electronic voting subsystem configured to enable a user to electronically vote for or rate the content.
U.S. Patent No. 9,477,665 - "Revenue-Generating Electronic Multi-Media Exchange and Process of Operating Same"
The Invention Explained
- Problem Addressed: The complaint notes that the ’665 Patent shares an identical specification with the ’480 Patent, and thus addresses the same problem of creating a structured online exchange for artistic and multimedia content (Compl. ¶ 37; ’665 Patent, col. 2:41-65).
- The Patented Solution: Rather than claiming a system of subsystems, this patent claims an electronic method for generating multimedia content. The process involves electronically retrieving submissions from a database using a filter based on user attributes, generating a new multimedia file from those submissions while maintaining submitter identification, transmitting that file to webservers for public viewing, and providing a graphical user interface for users to vote or rate the content (Compl. ¶¶ 37-38; ’665 Patent, Abstract).
- Technical Importance: The claimed method provides a specific, technical process for implementing a collaborative online content generation and distribution platform (Compl. ¶ 38).
Key Claims at a Glance
- The complaint asserts infringement of independent claim 1 (Compl. ¶ 45).
- Claim 1 requires a method comprising the steps of:
- Electronically retrieving a plurality of electronic media submissions from a database using an electronic content filter based on user attributes.
- Electronically generating a multimedia file from the retrieved submissions in accordance with a selected digital format, wherein the submitter's identification is maintained.
- Electronically transmitting the multimedia file to a plurality of publicly accessible webservers for viewing on user devices.
- Providing a web-based graphical user interface that enables a user to electronically transmit data indicating a vote or rating for the content.
III. The Accused Instrumentality
Product Identification
- The computer-based system and service offered by Defendant at https://soundcloud.com/ (the "Accused Instrumentality") (Compl. ¶ 22, ¶ 45).
Functionality and Market Context
- The Accused Instrumentality is an online platform that enables "user-artists" to create profiles and publish multimedia content, such as music tracks and albums, which can include audio, image, and textual content (Compl. ¶ 23, ¶ 46).
- It allows other users to create their own profiles, compile playlists, and comment on tracks (Compl. ¶ 23, ¶ 46). The complaint includes a screenshot of the Soundcloud upload interface as an example of how users provide submissions. (Compl. p. 17).
- The platform presents content to users via curated feeds and search results, which are allegedly based on user preferences and attributes like genre and tags (Compl. ¶ 23, ¶ 42). A screenshot shows Soundcloud's interface for adding metadata such as genre and tags to a track. (Compl. p. 33).
- The complaint alleges that Soundcloud utilizes multiple cloud server providers and separate server subsystems to perform its various functions (Compl. ¶ 23, ¶ 62).
IV. Analysis of Infringement Allegations
'480 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| an electronic media submissions server subsystem... having... a submissions electronic interface configured to receive electronic media submissions from a plurality of submitters over a public network, and store the electronic media submissions... | The Soundcloud platform includes servers and databases that receive and store user-uploaded content (profiles, music tracks, albums) via a web-based portal. | ¶24 | col. 8:31-43 |
| an electronic multimedia creator server subsystem... configured to select and retrieve a plurality of electronic media submissions... using an electronic content filter... based at least in part on... user attributes to develop multimedia content... | Soundcloud’s servers allegedly select and retrieve submitted content using filters based on user attributes (e.g., genre, tags) to generate user-artist profiles, curated feeds, and search results. A screenshot of search results for "independent music" is provided as an example. (Compl. p. 42). | ¶27 | col. 12:41-50 |
| an electronic release subsystem... configured to make the multimedia content electronically available for viewing on one of more user devices. | Soundcloud’s system serves the multimedia content (e.g., artist profiles, tracks) over the internet to user devices such as computers and smartphones running web browsers or apps. A screenshot shows an artist's profile page being displayed to a user. (Compl. p. 47). | ¶29 | col. 4:42-46 |
| an electronic voting subsystem... configured to enable a user to electronic vote for or electronically rate an electronically available multimedia content... | The Soundcloud interface provides a "Heart Icon," which the complaint alleges enables users to electronically vote for or rate content. A screenshot highlights this feature in the mobile app player. (Compl. p. 55). | ¶30 | col. 6:52-55 |
- Identified Points of Contention:
- Scope Questions: A primary question may be whether Soundcloud's functionality of displaying curated playlists or user profiles constitutes "develop[ing] multimedia content" as required by the creator subsystem limitation. The defense may argue this language requires the creation of a new, transformative work from the submissions, rather than merely selecting and displaying existing, unaltered submissions.
- Technical Questions: The analysis may focus on whether the architectural model of the patent—four distinct, operatively coupled "subsystems"—maps onto Soundcloud's allegedly more integrated, cloud-based service architecture.
'665 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| electronically retrieving a plurality of electronic media submissions from an electronic media submissions database using an electronic content filter... based at least in part on... user attributes... | Soundcloud’s system retrieves user-submitted content from its databases using filters that rely on user attributes such as genre, audio type, and tags to determine which content to display. | ¶47, ¶72 | col. 12:41-50 |
| electronically generating a multimedia file from the retrieved electronic media submissions... wherein the identification of the submitter is maintained with each retrieved submission within the multimedia file... | The complaint alleges Soundcloud generates multimedia files (e.g., user profiles, playlists, curated feeds) from the retrieved content, and that these files maintain the identity of the user who submitted the content. A screenshot is provided showing an artist's name ("Uppermost") displayed with their content. (Compl. p. 103). | ¶50, ¶103 | col. 4:35-41 |
| electronically transmitting the multimedia file to a plurality of publicly accessible webservers to be electronically available for viewing on one or more user devices over a public network... | Soundcloud allegedly transmits the generated multimedia files over the internet to make them available on user devices like computers and smartphones. | ¶51, ¶111 | col. 4:42-46 |
| providing a web-based graphical user interface that enables a user to electronically transmit data indicating a vote or rating for an electronically available multimedia content... | The Soundcloud platform provides a user interface with a "Heart Icon" that allegedly allows users to transmit data indicating a vote or rating for a piece of content. | ¶52, ¶118-119 | col. 12:1-14 |
- Identified Points of Contention:
- Scope Questions: Similar to the '480 patent, a central issue may be the interpretation of "electronically generating a multimedia file from the retrieved... submissions." The question will be whether this step is met by a server dynamically generating a webpage that displays existing content, or if it requires the creation of a new, distinct, and persistent media file that substantively combines or transforms the original submissions.
- Technical Questions: The infringement theory hinges on whether clicking a "like" button (the Heart Icon) is functionally the same as providing a "vote or rating" within the specific context of the claimed multi-step method for creating and distributing content.
V. Key Claim Terms for Construction
- The Term: "develop multimedia content" (from '480 Patent, claim 1) and "electronically generating a multimedia file from the retrieved electronic media submissions" (from '665 Patent, claim 1).
- Context and Importance: These related terms are central to the dispute. Their construction will determine whether the patents cover platforms that primarily curate and display user content (like Soundcloud) or are limited to platforms that create new, derivative works from user submissions (e.g., creating a movie from submitted scripts). Practitioners may focus on these terms because they define the core creative action of the claimed inventions.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim language itself does not explicitly require the creation of a new derivative work. "Develop multimedia content" could be interpreted to include arranging or curating existing content for presentation. Similarly, a server generating a webpage is technically "generating a... file" from database content.
- Evidence for a Narrower Interpretation: The patent specification repeatedly discusses a process of "adapting" submissions and creating new content like television episodes or movies from submitted ideas and scripts (’480 Patent, Abstract; col. 2:11-30). Flowcharts depict an "adaptation process" (e.g., ’480 Patent, FIG. 5C, element 530), suggesting a more transformative process than simple display.
VI. Other Allegations
- Indirect Infringement: The complaint does not plead facts sufficient to support claims for either induced or contributory infringement. The infringement counts are explicitly for "Direct Infringement" (Compl. ¶ 22, ¶ 45).
- Willful Infringement: The complaint does not contain allegations of willful infringement or facts related to Defendant's pre-suit or post-suit knowledge of the patents-in-suit.
VII. Analyst’s Conclusion: Key Questions for the Case
The resolution of this case may turn on the following central questions for the court:
- A core issue will be one of definitional scope: Do the terms "develop multimedia content" and "generating a multimedia file from... submissions," rooted in a patent describing the creation of new media like television shows, construe to cover the modern platform function of curating and displaying pre-existing, user-uploaded content in profiles and playlists?
- A second key issue will be one of functional interpretation: Does a social engagement feature, such as a "like" button, perform the specific function of the claimed "electronic voting subsystem" or the method step of "transmitting data indicating a vote or rating," which in the patent's context is part of a structured system for selecting content to be developed into new media?