Uniloc USA Inc v. ZTE

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Uniloc USA, Inc. (Texas), Uniloc 2017 LLC (Delaware), and Uniloc Licensing USA LLC (Delaware)
  • Defendant: ZTE (USA), Inc. (New Jersey) and ZTE (TX), Inc. (Texas)
  • Plaintiff’s Counsel: Prince Lobel Tye LLP; Nelson Bumgardner Albrittion PC
• Case Identification: 2:18-cv-00306, E.D. Tex., 08/08/2018
• Venue Allegations: Plaintiff alleges venue is proper because Defendant has a regular and established place of business in the district and has committed acts of infringement there.
• Core Dispute: Plaintiff alleges that Defendant’s electronic devices capable of operating under the Bluetooth 3.0 + HS standard infringe a patent related to multi-mode radio communication systems.
• Technical Context: The technology concerns methods for economically combining two different wireless communication modes—such as a lower-speed, bi-directional link and a higher-speed, uni-directional link—to efficiently manage asymmetric data traffic in a single device.
• Key Procedural History: The complaint is a First Amended Complaint. Subsequent to its filing, an Inter Partes Review (IPR) proceeding (IPR2019-00219) was initiated against the patent-in-suit. The IPR concluded with the cancellation of asserted independent claim 15 and asserted dependent claim 17. Asserted dependent claim 16 was found patentable and survives. This development significantly narrows the scope of the present litigation to the specific limitations of claim 16.

Case Timeline

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

U.S. Patent No. 7,020,106 - "RADIO COMMUNICATION SYSTEM"

The Invention Explained

• Problem Addressed: The patent addresses the cost and power-consumption problems of early multi-mode wireless terminals ('106 Patent, col. 1:60-65). Specifically, implementing multiple, fully bi-directional radio systems (e.g., one for cellular, one for high-speed local data) in a single mobile device was expensive and inefficient, particularly for asymmetric data tasks like web browsing where downlink traffic far exceeds uplink traffic ('106 Patent, col. 1:5-18).
• The Patented Solution: The invention proposes a more economical multi-mode system where a device uses two different communication modes cooperatively. A first, bi-directional mode (e.g., UMTS) is used for standard two-way communication. A second, high-speed mode (e.g., HIPERLAN/2) is implemented asymmetrically, for instance, as a downlink-only receiver in the mobile device ('106 Patent, col. 3:1-4). To manage the second mode, control information that would normally be sent on its (now absent) uplink channel is instead transmitted over the existing uplink channel of the first mode ('106 Patent, col. 4:29-31, Fig. 2). This architecture allows a mobile station to omit an entire transmitter for the high-speed mode, resulting in "significant cost, weight and power savings" ('106 Patent, col. 4:24-29).
• Technical Importance: This design provides a practical framework for building mobile devices that can handle high-bandwidth data downloads without the cost and power penalties of a second complete transceiver, a key consideration for the proliferation of mobile internet and video services ('106 Patent, col. 1:5-12).

Key Claims at a Glance

• The complaint asserts claims 15-17 (Compl. ¶20). Subsequent to the complaint's filing, an IPR proceeding cancelled claims 15 and 17, leaving dependent claim 16 as the only asserted claim remaining in the case.
• Independent Claim 15 (Asserted but Cancelled): A communication station comprising:
  • a first transceiver for a first communication mode with a first and second link;
  • at least one of a transmitter and receiver for a second communication mode with a third link;
  • wherein when at least one of the first or second link is not available, information is communicated via the third link;
  • wherein the first transceiver is configured for transmitting specification information about the second mode to a further station via the first mode.
• Dependent Claim 16 (Asserted and Surviving): "The communication station of claim 15, further comprising a converter configured to convert mode one data related to said first mode and received over said third communication link in said second mode to converted data that is further processed as if received via one of said first communication link and said second communication link associated with said first mode."
• The complaint also reserves the right to assert additional claims ('106 Patent, IPR Cert.).

III. The Accused Instrumentality

Product Identification

• A broad category of "Accused Infringing Devices" comprising dozens of ZTE smartphone and mobile device models that implement "Bluetooth version 3.0 + HS and above" (Compl. ¶15).

Functionality and Market Context

• The complaint alleges the accused devices operate a multi-mode communication system consistent with the Bluetooth 3.0 + HS (High Speed) standard (Compl. ¶16).
• A first mode, using a Basic Rate/Enhanced Data Rate (BR/EDR) Bluetooth radio, is allegedly used for functions like "discovery, association, connection establishment and connection maintenance" (Compl. ¶17).
• A second, higher-speed mode is allegedly implemented via an "Alternate MAC/PHY (AMP) physical link" using WiFi (IEEE 802.11) (Compl. ¶19). Once a BR/EDR connection is established, the devices can discover if a peer device also supports AMP and can move high-volume data traffic to the WiFi link (Compl. ¶18).
• The complaint does not provide specific details on the market positioning or commercial importance of the accused devices beyond the extensive list of models.
• No probative visual evidence provided in complaint.

IV. Analysis of Infringement Allegations

’106 Patent Infringement Allegations

| Claim Element (from Independent Claim 15 and Dependent Claim 16) | Alleged Infringing Functionality - | Complaint Citation | Patent Citation |
|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |:-----------------------|:-------------------|
| a first transceiver configured to... transmit... and receive... information... in a first mode - | The accused devices use a BR/EDR Bluetooth radio to perform discovery, association, and connection establishment. - | ¶17 | col. 3:55-58 |
| at least one of a transmitter and receiver configured to... transmit and receive... information... in a second mode - | The accused devices can communicate wirelessly with each other via an Alternate MAC/PHY (AMP) physical link using WiFi. - | ¶19 | col. 3:58-62 |
| wherein when at least one of said first... link and said second... link is not available, then at least one of said... information is communicated... via said third communication link in said second mode | The complaint does not provide sufficient detail for analysis of this element. The allegations describe a cooperative system using both modes, not a failover system for when a link is "not available." | N/A | col. 13:8-12 |
| wherein at least one of said first transceiver... is configured for transmitting specification information about a radio interface specification defining said second mode... to said further station | The BR/EDR radio is used for "discovery," where a first device can determine if a second device has a common AMP before moving data traffic to it. | ¶18 | col. 13:13-19 |
| (from Claim 16) a converter configured to convert mode one data... received over said third communication link... to converted data that is further processed as if received via... said first mode | The complaint does not provide sufficient detail for analysis of this element. It does not identify a "converter" or describe the alleged data conversion process. | N/A | col. 13:37-44 |

Identified Points of Contention

• Scope Questions: A primary dispute may arise over the meaning of "when at least one of said... link... is not available" from cancelled claim 15, upon which the surviving claim 16 depends. The complaint describes a cooperative architecture where both modes are available, which raises the question of whether this conditional limitation is met. The term could be construed to mean a link that is structurally absent by design (as in the patent’s main embodiment) or one that is temporarily non-functional, neither of which is explicitly alleged.
• Technical Questions: Since the case now rests on claim 16, a critical question is whether the accused devices contain a "converter" that performs the specific function required by the claim. The complaint does not identify such a component or allege facts that would establish its presence and operation.

V. Key Claim Terms for Construction

The Term: "when at least one of said first communication link and said second communication link is not available"

Context and Importance

This limitation, from the preamble of surviving claim 16 via claim 15, is foundational to infringement. Its construction will determine whether the cooperative architecture of Bluetooth 3.0+HS falls within the claim's scope. Practitioners may focus on this term because the complaint's factual allegations describe a system where both links are necessarily available and work together, which appears facially inconsistent with the "not available" condition.

Intrinsic Evidence for Interpretation

• Evidence for a Broader Interpretation: Language in the specification describing the invention's purpose as routing data for an "absent channel" of one mode via another ('106 Patent, col. 2:23-26) may support an interpretation that "not available" means structurally absent by design, aligning with the patent's cost-saving objective.
• Evidence for a Narrower Interpretation: An opponent could argue the plain meaning of "not available" implies a temporary state of inoperability (e.g., due to poor signal), a condition not alleged. They may argue that if the term meant "structurally absent," the patentee would have used that more precise language.

The Term: "a converter"

Context and Importance

As the central limitation added by the only surviving asserted claim, the definition of "converter" is paramount. The viability of the infringement case depends on Plaintiff proving the existence of a structure meeting this definition in the accused products.

Intrinsic Evidence for Interpretation

• Evidence for a Broader Interpretation: The term could be construed broadly to encompass any functional block, whether in hardware or software, that performs protocol adaptation to make data from one radio system intelligible to the protocol stack of another.
• Evidence for a Narrower Interpretation: The specification describes specific embodiments, such as "extension 214m" (Fig. 2), which "performs suitable protocol conversions" and interfaces with the "physical layer part of the UMTS protocol stack" ('106 Patent, col. 4:55-60). A defendant may argue that "converter" should be limited to a component performing this specific type of physical-layer-adjacent conversion, rather than any generic protocol adaptation.

VI. Other Allegations

• Indirect Infringement: The complaint alleges active inducement based on Defendant’s provision of "training videos, demonstrations, brochures, installation and user guides" that allegedly instruct customers to operate the accused devices in a manner that infringes claims 15-17 (Compl. ¶23).
• Willful Infringement: The complaint alleges willfulness based on knowledge of the '106 Patent obtained, "at the latest, the service upon it of the Original Complaint in this case" (Compl. ¶25).

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

• A core issue will be one of definitional scope: can the conditional phrase "when... not available," inherited from a cancelled independent claim, be construed to read on the cooperative functionality of the accused Bluetooth 3.0+HS systems, which rely on the availability of both communication modes? The outcome of this construction may be dispositive.
• A key evidentiary question will be one of functional existence: with the case now resting solely on dependent claim 16, can Plaintiff produce evidence that the accused devices contain the specific "converter" element as claimed? The complaint's failure to identify this component or its function suggests this will be a central point of factual dispute.