DCT
2:17-cv-00197
Preferential Networks IP LLC v. Sprint Spectrum LP
Key Events
Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Preferential Networks IP, LLC (Texas)
- Defendant: Sprint Spectrum L.P. (Delaware); Virgin Mobile USA, L.P. (New Jersey); Boost Mobile LLC (California)
- Plaintiff’s Counsel: Collins, Edmonds, Schlather & Tower, PLLC
- Case Identification: 2:17-cv-00197, E.D. Tex., 03/14/2017
- Venue Allegations: Venue is alleged to be proper in the Eastern District of Texas because Defendants conduct regular business within the district, and the cause of action arises from their contacts and activities there, including the sale and use of the accused services.
- Core Dispute: Plaintiff alleges that Defendants’ cellular network services, which throttle data speeds for certain users, infringe a patent related to methods for managing bandwidth allocation in a network server.
- Technical Context: The technology concerns dynamic bandwidth management, a method for network operators to control data flow and manage network congestion by selectively slowing down data transfers for heavy users.
- Key Procedural History: The patent-in-suit claims priority to an application filed in 2000. The complaint notes that Plaintiff previously filed a lawsuit against AT&T in December 2016 asserting the same patent for similar data throttling activities, an event Plaintiff uses to support its allegation of willful infringement in this case.
Case Timeline
| Date | Event |
|---|---|
| 2000-04-18 | '994 Patent Priority Date |
| 2013-11-05 | '994 Patent Issue Date |
| 2016-12-06 | Plaintiff files suit against AT&T on the '994 Patent |
| 2017-03-14 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
- Patent Identification: U.S. Patent No. 8,577,994, Management of Bandwidth Allocation in a Network Server, issued November 5, 2013.
The Invention Explained
- Problem Addressed: The patent addresses the problem of publicly accessible servers, particularly free web hosts, being overwhelmed by users distributing large media files (e.g., music, video), which was "choking" the network and degrading performance for all other users. (’994 Patent, col. 1:28-44).
- The Patented Solution: The invention is a server-side method to manage data transfer rates. It operates by throttling, or slowing down, data transfers based on certain criteria, such as the amount of data a user has previously transferred. (’994 Patent, Abstract). A key technique described is progressively decelerating a file transfer by inserting delays between