DCT

2:23-cv-00640

Pegasus Wireless Innovation LLC v. Verizon Communications Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 2:23-cv-00640, E.D. Tex., 12/29/2023
  • Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas based on Defendant’s maintenance of a "regular and established" place of business within the district, including retail stores and infringing cellular base stations, and because Defendant has previously admitted to or not contested venue in this district in other patent cases.
  • Core Dispute: Plaintiff alleges that Defendant’s 4G/LTE and 5G mobile networks, and the devices operating on them, infringe eleven patents related to standardized wireless telecommunications technologies.
  • Technical Context: The patents-in-suit relate to core functionalities of 4G/LTE and 5G wireless standards, technologies that underpin modern high-speed mobile voice and data communication.
  • Key Procedural History: The patents were originally developed by and assigned to KT Corporation, which Plaintiff asserts was a key contributor to 4G/LTE and 5G standards. Plaintiff Pegasus acquired all substantial rights to the patents-in-suit via an "Exclusive License Agreement" with KT. The complaint states that Pegasus provided notice of infringement to Verizon on December 16, 2022, and subsequently engaged in unsuccessful licensing negotiations before filing suit.

Case Timeline

Date Event
2013-09-26 Priority Date for U.S. Patent No. 9,894,644
2013-09-27 Priority Date for U.S. Patent No. 10,181,931
2014-03-21 Priority Date for U.S. Patent No. 10,009,161
2015-07-14 Priority Date for U.S. Patent No. 10,616,932
2016-05-12 Priority Date for U.S. Patent No. 10,721,118
2016-10-31 Priority Date for U.S. Patent No. 11,540,272
2016-11-03 Priority Date for U.S. Patent No. 11,627,631
2016-11-16 Priority Date for U.S. Patent No. 11,405,942
2017-07-28 Priority Date for U.S. Patent No. 10,594,460
2017-09-29 Priority Date for U.S. Patent Nos. 10,638,463 and 11,219,000
2018-02-13 U.S. Patent No. 9,894,644 Issues
2018-06-26 U.S. Patent Nos. 10,009,161 and 10,638,463 Issue
2019-01-15 U.S. Patent No. 10,181,931 Issues
2020-03-17 U.S. Patent No. 10,594,460 Issues
2020-04-07 U.S. Patent No. 10,616,932 Issues
2020-07-21 U.S. Patent No. 10,721,118 Issues
2022-01-04 U.S. Patent No. 11,219,000 Issues
2022-08-02 U.S. Patent No. 11,405,942 Issues
2022-09-07 Pegasus acquires patents-in-suit from KT Corporation
2022-12-16 Pegasus provides Verizon with first notice of infringement
2022-12-27 U.S. Patent No. 11,540,272 Issues
2023-04-11 U.S. Patent No. 11,627,631 Issues
2023-12-29 Complaint Filed

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

U.S. Patent No. 11,627,631, "Method for Processing Data on Basis of Network Slide, and Apparatus Therefor," issued April 11, 2023

The Invention Explained

  • Problem Addressed: The patent addresses the need to maintain service continuity and stability for user equipment (UE) that is moving between two base stations while using network slicing technology (Compl. ¶61). Network slicing is a key feature of 5G that allows a single physical network to be partitioned into multiple virtual networks, each tailored to a specific service or customer.
  • The Patented Solution: The invention provides a method for a source base station to manage a UE handover process that accounts for network slices. The method involves receiving network slice request information from a terminal, relaying this information to a core network entity for configuration, and then receiving a handover command that was generated by a target base station based on the specific slice information from the core network (Compl. ¶62; ’631 Patent, Abstract).
  • Technical Importance: This technology is intended to enable seamless mobility in 5G networks that rely on network slicing to deliver diverse services, such as enhanced mobile broadband and massive machine-type communications, on a common infrastructure (Compl. ¶61).

Key Claims at a Glance

  • The complaint asserts independent claims 1, 7, and 13 (Compl. ¶62).
  • The essential elements of independent method claim 1, as described in the complaint, include:
    • Receiving, by a source base station, network slice request information from a terminal in which a network slice is configured
    • Controlling the delivery of the network slice request information to a core network entity
    • Receiving, from the core network entity, specific network slice information configured based on the network slice request information
    • Receiving a handover command generated by a target base station based on the specific network slice information received from the core network entity
  • The complaint reserves the right to assert dependent claims.

U.S. Patent No. 10,181,931, "Method for Uplink Control Channel Resource Allocation of Terminal and Apparatus Thereof," issued January 15, 2019

The Invention Explained

  • Problem Addressed: The patent addresses the need for an efficient method to allocate resources for an uplink control channel (PUCCH) specifically for machine-type communication (MTC) terminals operating in 3GPP LTE/LTE-Advanced systems (Compl. ¶83). MTC devices, central to the Internet of Things (IoT), often have different operational parameters (e.g., lower power, enhanced coverage needs) than standard mobile phones.
  • The Patented Solution: The invention discloses methods and apparatuses for a base station to configure, and for an MTC terminal to use, resources for transmitting response information (such as HARQ ACK/NACK feedback) on the uplink control channel (’931 Patent, Abstract). The resource allocation is determined based on a combination of factors, including information about the downlink control channel, pre-configured uplink channel information, and specific start offset information (Compl. ¶87).
  • Technical Importance: Efficiently managing uplink control resources for MTC is critical for scaling IoT deployments, which can involve massive numbers of low-complexity devices that require reliable communication, often in challenging radio environments (Compl. ¶83).

Key Claims at a Glance

  • The complaint asserts independent claims 1, 3, 5, and 7 (Compl. ¶84).
  • The essential elements of independent method claim 3, as described in the complaint, include:
    • Transmitting structural information containing at least one of (i) information on an uplink control channel resource and (ii) start offset information for that resource
    • Transmitting downlink control information for scheduling downlink data
    • Transmitting the downlink data, wherein the resource of the uplink control channel for transmitting response information is determined based on at least one of (i) information on a resource of a downlink control channel, (ii) the information on the resource allocated to the uplink control channel, and (iii) the start offset information
  • The complaint reserves the right to assert dependent claims.

Multi-Patent Capsule: U.S. Patent No. 10,616,932

  • Patent Identification: U.S. Patent No. 10,616,932, “Method for Configuring Wireless Connection of Terminal Apparatus Therefor,” issued April 7, 2020 (Compl. ¶99).
  • Technology Synopsis: The patent relates to methods for configuring a wireless connection between a terminal and a mobile network. The invention is described as a novel wireless access network structure and procedure for radio connection setup intended to reduce investment and operating costs for base stations and cells (Compl. ¶104).
  • Asserted Claims: Independent claims 1 and 8 (Compl. ¶105).
  • Accused Features: The accused features relate to the signaling method for radio resource control in a 5G mobile communications network, specifically involving an access unit and a central unit exchanging messages to establish a connection for a terminal (Compl. ¶¶107-108).

Multi-Patent Capsule: U.S. Patent No. 11,405,942

  • Patent Identification: U.S. Patent No. 11,405,942, “Method and Apparatus for Transmitting and Receiving Downlink Signal in Next Generation Wireless Network,” issued August 2, 2022 (Compl. ¶120).
  • Technology Synopsis: The patent addresses a method for multiplexing data traffic with different Quality of Service (QoS) requirements in a 5G network. The invention aims to prevent data loss and unnecessary processing by using pre-emption indication data to manage shared radio resources (Compl. ¶125).
  • Asserted Claims: Independent claims 1, 5, and 9 (Compl. ¶126).
  • Accused Features: The accused features relate to supporting efficient multiplexing through preemption indication in the 5G network, including configuring a specific radio network temporary identifier (RNTI) for downlink preemption information and transmitting it via multicast or unicast signals (Compl. ¶¶128-129).

Multi-Patent Capsule: U.S. Patent No. 10,594,460

  • Patent Identification: U.S. Patent No. 10,594,460, “Apparatus and Method for Transmitting and Receiving Uplink Channel,” issued March 17, 2020 (Compl. ¶141).
  • Technology Synopsis: The patent relates to methods for frequency hopping for uplink channel transmission in a 5G network. The invention provides a way for user equipment to transmit on uplink control and data channels using a single bandwidth part (BWP) based on configuration information received from a base station (Compl. ¶¶146-147).
  • Asserted Claims: Independent claims 1, 5, and 9 (Compl. ¶147).
  • Accused Features: The accused features involve the ability to perform frequency hopping in a 5G network to prevent resource collisions, specifically by transmitting BWP configuration and frequency hopping information to user equipment (Compl. ¶¶149-150).

Multi-Patent Capsule: U.S. Patent No. 10,721,118

  • Patent Identification: U.S. Patent No. 10,721,118, “Method for Configuring Dual-Connectivity by Terminal, and Apparatus Therefor,” issued July 21, 2020 (Compl. ¶162).
  • Technology Synopsis: The patent addresses a method for a terminal to configure dual-connectivity, enabling connection to a base station using legacy network technology and a base station using next-generation technology simultaneously. The invention includes procedures for adding a secondary base station signaling radio bearer (SRB) and handling configuration failures (Compl. ¶¶167-168).
  • Asserted Claims: Independent claims 1, 7, and 10 (Compl. ¶168).
  • Accused Features: The accused features involve the ability to configure dual-connectivity in a 5G network by adding a secondary base station SRB and exchanging radio resource control (RRC) messages to configure the secondary connection (Compl. ¶¶170-171).

Multi-Patent Capsule: U.S. Patent No. 11,219,000

  • Patent Identification: U.S. Patent No. 11,219,000, “Apparatus and Method of Uplink Control Channel Resource Allocation for New Radio,” issued January 4, 2022 (Compl. ¶183).
  • Technology Synopsis: The patent relates to a method for a user device to transmit uplink control information in a 5G radio access network. The invention enables the device to transmit on an uplink channel based on a specific bandwidth part (BWP) when the device uses various BWPs (Compl. ¶188).
  • Asserted Claims: Independent claims 1, 5, and 9 (Compl. ¶189).
  • Accused Features: The accused features concern uplink control channel resource allocation in 5G networks, including transmitting UL control channel resource set configuration information and determining the resource set based on the size of the UL control information (Compl. ¶¶191-192).

Multi-Patent Capsule: U.S. Patent No. 10,638,463

  • Patent Identification: U.S. Patent No. 10,638,463, “Apparatus and Method of Uplink Control Channel Resource Allocation for New Radio,” issued June 26, 2018 (Compl. ¶204).
  • Technology Synopsis: This patent, similar to the ’000 Patent, relates to a method for allocating an uplink control channel resource in a 5G network. The invention involves receiving configuration information for a set of uplink control channel resources, determining one resource set, and transmitting the uplink control information using a resource from that set (Compl. ¶¶209-210).
  • Asserted Claims: Independent claims 1, 4, and 7 (Compl. ¶210).
  • Accused Features: The accused features relate to uplink control channel resource allocation where resource sets are configured for each uplink bandwidth part (BWP), and each BWP is activated via downlink control information (Compl. ¶¶212-213).

Multi-Patent Capsule: U.S. Patent No. 11,540,272

  • Patent Identification: U.S. Patent No. 11,540,272, “Method and Device for Allocating Data Channel Resource for Next-Generation Wireless Access Network,” issued December 27, 2022 (Compl. ¶225).
  • Technology Synopsis: The patent discloses a method for a base station to allocate a time interval resource for a downlink (PDSCH) or uplink (PUSCH) data channel in a 5G network. The method involves allocating resources for each OFDM symbol based on a slot or mini-slot and transmitting configuration information to a terminal (Compl. ¶¶230-231).
  • Asserted Claims: Independent claims 1, 8, and 15 (Compl. ¶231).
  • Accused Features: The accused features concern the ability to allocate time-domain resources in 5G networks, including transmitting RRC signals with allocations of OFDM symbols and using downlink control information (DCI) to indicate a specific allocation from a table (Compl. ¶¶233-234).

Multi-Patent Capsule: U.S. Patent No. 9,894,644

  • Patent Identification: U.S. Patent No. 9,894,644, “Method for Transceiving Downlink Control Information and Apparatus for Same,” issued February 13, 2018 (Compl. ¶246).
  • Technology Synopsis: The patent relates to a method for repeatedly transceiving downlink control information for a terminal in enhanced coverage. The invention provides a base station with a method to send configuration information so that a terminal can receive downlink control channels repeated across multiple subframes to ensure reception (Compl. ¶¶251-252).
  • Asserted Claims: Independent claims 1, 2, and 3 (Compl. ¶252).
  • Accused Features: The accused features involve the ability to transceive downlink control information in 4G/LTE networks, specifically by transmitting configuration information for multiple subframes and then transmitting the control information repeatedly across those subframes (Compl. ¶¶254-255).

Multi-Patent Capsule: U.S. Patent No. 10,009,161

  • Patent Identification: U.S. Patent No. 10,009,161, “Method for Transmitting and Receiving the Channel State Information and Apparatus Thereof,” issued June 26, 2018 (Compl. ¶267).
  • Technology Synopsis: The patent relates to transmitting and receiving channel state information (CSI) for a user equipment that supports 256-state quadrature amplitude modulation (256QAM). The invention provides systems and methods for modulating data that can rapidly process large amounts of data traffic (Compl. ¶272).
  • Asserted Claims: Independent claims 1, 3, and 5 (Compl. ¶273).
  • Accused Features: The accused features relate to the ability to transmit and receive channel state information in 4G/LTE and 5G networks consistent with Release 12 and Release 15 standards, particularly the use of a channel quality indicator (CQI) index selected from a 256QAM modulation CQI index table (Compl. ¶¶275-276).

III. The Accused Instrumentality

Product Identification

The accused instrumentalities are collectively identified as Verizon's 4G/LTE and 5G mobile networks and devices (Compl. ¶¶37-38). This includes network infrastructure ("Verizon Base Stations") and end-user products ("Accused Devices") such as the Google Pixel 6 and 7 series, various Motorola edge models, and others sold by Verizon that are capable of operating on its 4G/LTE and 5G networks (Compl. ¶42).

Functionality and Market Context

The complaint alleges that the accused networks and devices operate in compliance with the 3GPP 4G/LTE and 5G standards, including Releases 8 through 15 and later (Compl. ¶¶37, 44). The functionality at issue encompasses the various technical operations specified by these standards, which are alleged to practice the methods claimed in the patents-in-suit. Verizon publicly promotes its network as a "market-leading 4G/LTE and 5G mobile network," with its 4G LTE network covering over 99% of the U.S. population (Compl. ¶39). The complaint includes a screenshot of Verizon's coverage map, which depicts 4G/LTE and 5G service availability in cities within the Eastern District of Texas, such as Marshall and Tyler (Compl. p. 14, Figure 1).

IV. Analysis of Infringement Allegations

'631 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
a method, performed by a source base station, for processing data based on a network slice... comprising: receiving network slice request information from a terminal... The accused 5G network, including a source base station, determines whether to perform a handover for a user device. ¶65 col. 10:18-24
controlling so as to deliver the network slice request information to a core network entity; When a handover is decided, the source base station transmits a handover request message that includes network slice information to the target base station. ¶65 col. 10:25-28
receiving from the core network entity specific network slice information configured on the basis of the network slice request information; and The source base station receives a handover request confirmation message in response from the target base station. ¶65 col. 10:29-33
receiving a handover command generated based on specific network slice information received from a core network entity by a target base station. The handover request confirmation message includes information indicating the rejection of protocol data unit (PDU) sessions associated with network slices not supported by the target base station. ¶65 col. 10:34-40
  • Identified Points of Contention:
    • Scope Questions: A central question may be whether the sequence of messages and information flows in Verizon's 5G network implementation of a handover procedure precisely mirrors the ordered steps of claim 1. The claim requires the handover command to be "generated based on" the specific slice information received from the core network; the evidence required to prove this causal link may be a point of contention.
    • Technical Questions: The infringement allegation relies on mapping the claimed steps to operations defined in 3GPP standards (Compl. ¶65). A key technical question will be whether Verizon's actual implementation of these standards, particularly TS 38.300 and TS 38.423, results in a "handover request confirmation message" that performs the specific function of indicating rejection of PDU sessions for unsupported network slices, as the patent allegedly discloses.

'931 Patent Infringement Allegations

Claim Element (from Independent Claim 3) Alleged Infringing Functionality Complaint Citation Patent Citation
A method for configuring, by a base station, a resource of response information of downlink data of a Machine Type Communication (MTC) terminal, the method comprising: transmitting structural information... including... (i) information on an uplink control channel resource and (ii) start offset information... The accused 4G/LTE network transmits structural information, such as via a PUCCH-Config message, which includes information on an uplink control channel resource and start offset information for that resource. ¶87 col. 14:1-11
transmitting downlink control information for scheduling the downlink data; and The network transmits downlink control information to schedule the transmission of downlink data to the MTC terminal. ¶87 col. 14:12-13
transmitting the downlink data... The network transmits the downlink data to the MTC terminal. ¶87 col. 14:14-15
wherein the resource of the uplink control channel for transmitting the response information...is determined based on at least one of (i) information on a resource of a downlink control channel..., (ii) the information on the resource allocated to the uplink control channel, and (iii) the start offset information... The uplink control channel resource is determined based on factors including the downlink control channel resource, the allocated uplink resource, and the start offset information. The complaint alleges the start offset information is determined based on a coverage level and received via cell-specific signaling. ¶87 col. 14:16-25
  • Identified Points of Contention:
    • Scope Questions: The claim requires the uplink control channel resource to be "determined based on" a specific three-part set of information. A likely point of dispute will be whether Verizon's system uses this exact combination of inputs for its resource allocation algorithm, or if it uses a different set of factors that only partially overlaps with the claimed method.
    • Technical Questions: The complaint alleges that the "start offset information" in the accused system has specific technical characteristics, such as being "determined based on a coverage level" (Compl. ¶87). A key factual question will be whether Verizon's network actually calculates or configures this offset based on the MTC terminal's coverage conditions, as the claim appears to require.

V. Key Claim Terms for Construction

'631 Patent

  • The Term: "handover command generated based on specific network slice information"
  • Context and Importance: This term is critical because it links the network slice data to the ultimate handover decision. The dispute will likely turn on the nature of the causal connection required by "generated based on." Practitioners may focus on this term because infringement depends on showing that the slice information is not merely passed along, but is an active input in the target base station's generation of the command.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The detailed description may describe the system in general terms, suggesting that any handover process that considers slice information would be covered, even if other factors are also involved (’631 Patent, col. 10:29-40).
    • Evidence for a Narrower Interpretation: The specification may describe specific embodiments where the handover command is generated solely or primarily from the slice information, or through a specific algorithm that uses the slice information as a direct input, potentially supporting a narrower construction (’631 Patent, Abstract).

'931 Patent

  • The Term: "start offset information...determined based on a coverage level"
  • Context and Importance: This term is central to the inventive method of resource allocation for MTC terminals, which often operate in poor coverage conditions. Whether Verizon's system uses "coverage level" as a determining input for the "start offset information" will be a key factual and legal question.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification might describe "coverage level" in broad terms, potentially encompassing any metric related to signal strength or quality, which could support a finding that standard network operations meet this limitation (’931 Patent, col. 8:1-10).
    • Evidence for a Narrower Interpretation: The patent may define "coverage level" as a specific, discrete set of states (e.g., "normal coverage," "enhanced coverage level 1") that are formally configured and used in the offset calculation. This could narrow the claim scope to systems that implement such a specific scheme (’931 Patent, col. 7:42-51).

VI. Other Allegations

  • Indirect Infringement: The complaint alleges inducement of infringement against Verizon for encouraging its customers and original equipment manufacturers (OEMs) to use the accused networks and devices in an infringing manner through marketing materials, instructions, and technical information (Compl. ¶¶68-69, 89-90). It also alleges contributory infringement, stating the accused products are especially designed to operate in an infringing manner and are not staple articles of commerce suitable for substantial non-infringing use (Compl. ¶¶71, 92).
  • Willful Infringement: Willfulness is alleged based on two grounds. First, Verizon's alleged knowledge of the patents stems from its membership in 3GPP, where the original patent owner, KT, declared the patents as essential to the 4G/LTE and 5G standards (Compl. ¶¶75, 96). Second, the complaint alleges Verizon had actual notice of the patents and its infringement as of at least December 16, 2022, via correspondence from Pegasus, and continued its infringing activities thereafter (Compl. ¶¶75-76, 96-97).

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

  • A core issue will be one of standards interpretation: given that the infringement allegations for all eleven patents are predicated on the accused products' compliance with 3GPP standards, the case will require a granular analysis of whether the specific language of the asserted claims reads directly onto the mandatory functions described in the cited technical specifications, or if the standards allow for non-infringing alternatives.
  • A key evidentiary question will be one of technical implementation: beyond what the standards require, the dispute will likely focus on how Verizon's network and the accused devices actually implement the claimed functions. For instance, with respect to the '931 patent, what specific data does Verizon's system use to determine the "start offset information" for an MTC terminal, and can Plaintiff prove this input constitutes a "coverage level" as contemplated by the patent?
  • A central legal question will be one of claim construction: the outcome will likely hinge on the court’s interpretation of critical claim terms such as "handover command generated based on specific network slice information" (’631 patent) and "start offset information...determined based on a coverage level" (’931 patent), which will define the scope of the patented inventions and the corresponding bar for proving infringement.