DCT

6:19-cv-01322

Corning Optical Communications LLC v. Fibersource Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 6:19-cv-01322, D.S.C., 05/06/2019
  • Venue Allegations: Venue is alleged to be proper in the District of South Carolina because the Defendant is a resident of the district and has regularly transacted business there.
  • Core Dispute: Plaintiff alleges that Defendant’s preconnectorized fiber optic plug assemblies infringe three patents related to fiber optic connector technology and that Defendant’s conduct also constitutes a breach of a prior license agreement between the parties.
  • Technical Context: The technology at issue involves hardened fiber optic connectors used to streamline the deployment of "Fiber to the Home" (FTTH) and other telecommunication networks.
  • Key Procedural History: The complaint alleges that the parties’ predecessors entered into a license agreement in 2004, granting Defendant limited rights to U.S. Patent Nos. 6,579,014 and 6,648,520. Plaintiff claims that Defendant infringed two other, non-licensed patents (U.S. Patent Nos. 7,090,406 and 7,467,896) and that this act constituted a breach that automatically terminated the license agreement. Plaintiff alleges it sent a notice letter detailing the alleged infringement and breach on July 26, 2018, putting Defendant on notice.

Case Timeline

Date Event
2000-08-25 Earliest Priority Date for ’406 and ’896 Patents
2001-09-28 Priority Date for ’520 Patent
2003-11-18 ’520 Patent Issue Date
2004-01-01 License Agreement Entered (approximate)
2006-08-15 ’406 Patent Issue Date
2008-12-23 ’896 Patent Issue Date
2018-07-26 Plaintiff sends notice of infringement and breach to Defendant
2019-05-06 Complaint Filing Date

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

U.S. Patent No. 7,090,406 - "Preconnectorized Fiber Optic Drop Cables and Assemblies"

  • Patent Identification: U.S. Patent No. 7,090,406, "Preconnectorized Fiber Optic Drop Cables and Assemblies," Issued August 15, 2006 (the "'406 Patent"). (Compl. ¶30).

The Invention Explained

  • Problem Addressed: The patent’s background section describes the difficulty and expense of making optical connections in the field for "last mile" network deployments, noting that such work requires highly trained craftspeople and specialized equipment, making it an "expensive and inefficient proposition for field connectorization." (’406 Patent, col. 2:24-34).
  • The Patented Solution: The invention is a pre-terminated fiber optic cable assembly designed for outdoor use. The core of the solution is a plug connector featuring a novel crimp assembly. This assembly includes a crimp housing composed of two "half-shells" which are held together by an outer crimp band to securely clamp onto the cable's strength elements, protecting the delicate optical fiber connection within. (’406 Patent, Abstract; col. 5:7-22).
  • Technical Importance: This technology sought to reduce the cost and complexity of FTTH deployments by replacing field-based connector installation with a robust, factory-assembled plug-and-play solution. (’406 Patent, col. 2:27-34).

Key Claims at a Glance

  • The complaint asserts independent claims 1, 21, 40, and 58. (Compl. ¶48).
  • The essential elements of independent claim 1 include:
    • A cable with at least one optical waveguide and at least one tensile element.
    • A plug connector attached to the cable, which comprises:
      • A crimp assembly including a crimp housing and a crimp band.
      • The crimp housing is made of two half-shells held together by the crimp band.
      • The half-shells define a cable clamping portion that secures the tensile element of the cable.
      • A connector assembly (including a body and ferrule) that is secured within a connector assembly clamping portion of the two half-shells.
  • The complaint also asserts dependent claims 4, 6-18, 24, 26-37, 43, and 45-55. (Compl. ¶48).

U.S. Patent No. 7,467,896 - "Fiber Optic Drop Cables and Preconnectorized Assemblies"

  • Patent Identification: U.S. Patent No. 7,467,896, "Fiber Optic Drop Cables and Preconnectorized Assemblies," Issued December 23, 2008 (the "'896 Patent"). (Compl. ¶32).

The Invention Explained

  • Problem Addressed: The patent addresses the same general problem as the ’406 Patent: the need for an "efficient and relatively low-cost method of reliably making optical connections in the field without using specialized equipment and highly skilled labor." (’896 Patent, col. 2:28-32).
  • The Patented Solution: The patent describes a preconnectorized cable with a plug connector that includes a crimp assembly and a shroud. The crimp assembly uses a housing of "at least two shells" to secure the cable's tensile elements. The shroud fits over this assembly and includes keyed "fingers" that ensure proper alignment and mating with a corresponding receptacle, protecting the connector during installation and use. (’896 Patent, Abstract; col. 6:40-44).
  • Technical Importance: This invention provides a ruggedized, pre-assembled connector system that simplifies the process of establishing a high-quality optical link in an outdoor environment, a critical step for expanding fiber optic networks to subscribers. (’896 Patent, col. 2:1-11).

Key Claims at a Glance

  • The complaint asserts independent claim 28. (Compl. ¶58).
  • The essential elements of independent claim 28 include:
    • A cable with an optical waveguide and at least one tensile element.
    • A plug connector attached to the cable, which comprises:
      • A shroud with a first and a second finger for mating with a receptacle.
      • The fingers are disposed 180 degrees apart and have different cross-sectional shapes for keying the connection.
      • A crimp assembly with a housing comprising at least two shells.
      • A connector assembly (including a housing, spring, and ferrule).
      • A cable clamping portion within the shells that secures the tensile element.
  • The complaint also asserts dependent claims 29-37. (Compl. ¶58).

U.S. Patent No. 6,648,520 - "Fiber Optic Plug"

  • Patent Identification: U.S. Patent No. 6,648,520, "Fiber Optic Plug," Issued November 18, 2003 (the "'520 Patent"). (Compl. ¶19).
  • Technology Synopsis: The patent seeks to solve problems related to forces that create torque on a fiber optic connector, which can degrade the signal, and the physical challenge of pulling pre-terminated cables through small ducts. (’520 Patent, col. 2:26-34, col. 2:48-59). The invention is a fiber optic plug with a protective shroud that defines openings sized to receive portions of a mating adapter sleeve, which can reduce the plug's overall size compared to conventional designs. (Compl. ¶20; ’520 Patent, Abstract).
  • Asserted Claims: The complaint asserts independent claims 1, 7, and 17. (Compl. ¶88).
  • Accused Features: The accused products are "preconnectorized fiber optic plug assemblies" from the Defendant's "pre-terminated OSP drop cable product line," including the "OPSSCA-SCAPC 3M 3.0mm Singlemode Simplex product with a hardened plug connector." (Compl. ¶88).

III. The Accused Instrumentality

Product Identification

The accused instrumentalities are "certain preconnectorized fiber optic plug assemblies" sold by FiberSource, including products from its "pre-terminated OSP drop cable product line" and other "OptiTap® compatible products." (Compl. ¶2, ¶39). A specific example identified is the "OPSSCA-SCAPC 3M 3.0mm Singlemode Simplex product with a hardened plug connector." (Compl. ¶38).

Functionality and Market Context

The accused products are hardened, pre-terminated fiber optic cables intended for outside plant (OSP) applications, particularly "Fiber to the Home (FTTH)." (Compl. ¶40). The complaint alleges these products incorporate a "crimp assembly having a crimp band and a housing wherein the housing includes two shells." (Compl. ¶39). FiberSource is alleged to advertise these products as providing "quick subscriber connections" and being "compatible with industry standard OSP terminals." (Compl. ¶41). The complaint includes photographs of an accused product, the OPSSCA-SCAPC 3M 3.0mm Singlemode Simplex product, showing a hardened plug connector on one end (Compl. ¶38, Ex. E).

IV. Analysis of Infringement Allegations

'406 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
a crimp assembly, wherein the crimp assembly includes a crimp housing and a crimp band, wherein the crimp housing comprises two half-shells being held together by the crimp band... FiberSource's accused products are alleged to incorporate a "crimp assembly having a crimp band and a housing wherein the housing includes two shells." ¶49 col. 5:12-15
the two half-shells having...at least one cable clamping portion...wherein the at least one cable clamping portion secures the at least one tensile element... The accused products are alleged to have features specifically described and claimed in the patent, which requires the clamping portion to secure the cable's tensile element. ¶48, ¶50 col. 5:62-66
a connector assembly...wherein a portion of the connector assembly is secured in the connector assembly clamping portion of the two half-shells of the crimp housing. The accused products are alleged to have features specifically described and claimed in the patent, which requires the connector assembly to be secured within the crimp housing. ¶48, ¶50 col. 5:19-22

'896 Patent Infringement Allegations

Claim Element (from Independent Claim 28) Alleged Infringing Functionality Complaint Citation Patent Citation
a shroud...the shroud including a first finger and a second finger for mating with a complementary receptacle...the first finger and the second finger...have different cross-sectional shapes for keying the plug connector... FiberSource's accused products are alleged to have features "specifically described and claimed in the '896 Patent," which would include the keyed shroud with mating fingers. ¶58, ¶60 col. 6:40-44, 6:58-62
a crimp assembly...wherein the crimp housing comprises at least two shells... FiberSource's accused products are alleged to incorporate "a crimp assembly having a crimp band and a housing wherein the housing includes two shells." ¶59 col. 5:48-52
the at least one cable clamping portion secures at least one tensile element of the cable... The accused products are alleged to have features specifically described and claimed in the patent, which requires the clamping portion within the shells to secure the cable's tensile element. ¶58, ¶60 col. 5:43-47

Identified Points of Contention

  • Contractual Scope: A threshold dispute for the ’520 Patent claim is contractual. The analysis will depend on whether the court finds that FiberSource's alleged use of unlicensed technology from the ’406 and ’896 Patents constituted a material breach that automatically terminated the 2004 license agreement (Compl. ¶73, ¶87). If the license was not terminated, there can be no infringement of the ’520 patent.
  • Technical Questions: For the ’406 and ’896 Patents, the core technical question is whether the accused products' "crimp assembly" meets the specific structural and functional limitations of the claimed "crimp housing." The court will need to examine the physical construction of the accused products to determine if they are, in fact, "held together by [a] crimp band" (’406 Patent, cl. 1) and possess the specific "cable clamping portion" and "connector assembly clamping portion" as claimed.

V. Key Claim Terms for Construction

Term from the '406 Patent: "crimp housing"

  • The Term: "crimp housing" (Claim 1)
  • Context and Importance: This term is central to the infringement allegations, as Plaintiff alleges the accused products incorporate this specific feature. The construction of "crimp housing" and its constituent "two half-shells" will determine whether the accused mechanism falls within the scope of the claims. Practitioners may focus on this term because its definition dictates whether a broad range of multi-part connectors or only a specific structural arrangement is covered.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification provides a functional description, stating the crimp housing is for "securing connector assembly 52 as well as providing strain relief to cable 40." (’406 Patent, col. 5:31-33). This language could support a construction covering various structures that perform this function.
    • Evidence for a Narrower Interpretation: The preferred embodiment describes a specific structure where the "crimp housing 55 has two half-shells 55a that are held together by crimp band 54." (’406 Patent, col. 5:48-51). Figure 6b further details these half-shells with specific internal features like "outboard half-pipe passageways 56a" and a "central half-pipe passageway 56b," which may suggest a more limited structural definition.

Term from the '896 Patent: "shroud"

  • The Term: "shroud" (Claim 28)
  • Context and Importance: The structure of the shroud, particularly its keying features ("first finger and a second finger...hav[ing] different cross-sectional shapes"), is a distinguishing element of this patent. The infringement analysis will depend on whether the outer component of the accused product performs the specific protective and keyed alignment functions as required by the claim.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification generally states the "shroud 60 has a generally cylindrical shape" and "generally protects connector assembly 52." (’896 Patent, col. 6:40-42). This could support a reading on any protective outer sleeve.
    • Evidence for a Narrower Interpretation: The claim requires specific "fingers for mating" with "different cross-sectional shapes for keying." The specification supports this, describing "alignment portions or fingers 61a, 61b" that ensure the plug and receptacle "only mate in one orientation." (’896 Patent, col. 6:58-62; Figs. 5a, 5b). This points to a narrower construction requiring specific, differentiated alignment features, not just a simple protective cover.

VI. Other Allegations

  • Indirect Infringement: The complaint's primary focus is on direct infringement by making, using, and selling the accused products (Compl. ¶48, ¶58, ¶88). While the prayer for relief includes language regarding components "especially made or especially adapted for use in an infringement," the counts themselves do not plead the elements of knowledge and intent for indirect infringement. (Compl. p. 22-23).
  • Willful Infringement: The complaint alleges that Defendant’s infringement was willful, deliberate, and intentional for all three asserted patents. (Compl. ¶53, ¶63, ¶95). This allegation is based on alleged pre-suit knowledge, specifically stemming from a July 26, 2018, correspondence in which Plaintiff allegedly notified Defendant that its products may infringe the ’406 and ’896 Patents and provided copies of the patents. (Compl. ¶42, ¶44).

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

  • A threshold issue will be one of contractual interpretation: Did Defendant's alleged actions constitute a material breach of the 2004 License Agreement sufficient to cause its automatic termination? The viability of the infringement claim concerning the ’520 Patent hinges entirely on the court's answer to this question.
  • A central evidentiary question will be one of structural identity: Do the accused "preconnectorized fiber optic plug assemblies" actually contain a "crimp housing" made of "two half-shells held together by [a] crimp band," as required by the asserted claims of the ’406 and ’896 patents? The case will likely require a detailed technical comparison between the accused products and the specific claim limitations.
  • A key factual question for damages will be willfulness: Did Defendant's continued sale of the accused products after receiving the July 2018 notice letter from Plaintiff constitute willful infringement? The court's determination will turn on the content of that notice and Defendant’s subsequent actions.