DCT

2:24-cv-00535

Valtrus Innovations Ltd v. Digital Realty Trust Inc

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 2:24-cv-00535, E.D. Tex., 07/12/2024
  • Venue Allegations: Venue is alleged based on Defendant’s operation of a regular and established place of business within the district, specifically its DFW11 and DFW26 Data Centers.
  • Core Dispute: Plaintiff alleges that Defendant’s data centers infringe seven patents related to data center cooling, atmospheric control, performance evaluation, sensor assemblies, modular deployment, and power supply management.
  • Technical Context: The patents address technologies for improving the energy efficiency and operational reliability of large-scale data centers, a critical infrastructure for modern cloud computing and internet services.
  • Key Procedural History: The complaint is marked as related to a prior action between Valtrus and Digital Realty (2:24-cv-00139). Key Patent Innovations Ltd. is added as a co-plaintiff as a precautionary measure due to a challenge in an unrelated case regarding Valtrus's right to assert patents. The asserted patents originate from a portfolio created by Hewlett Packard Enterprise (HPE).

Case Timeline

Date Event
2002-04-17 U.S. Patent No. 6,718,277 Priority Date
2002-08-02 U.S. Patent No. 6,854,287 Priority Date
2002-11-26 U.S. Patent No. 6,862,179 Priority Date
2004-04-06 U.S. Patent No. 6,718,277 Issue Date
2004-05-28 U.S. Patent No. 7,031,870 Priority Date
2004-06-29 U.S. Patent No. 7,339,490 Priority Date
2005-02-15 U.S. Patent No. 6,854,287 Issue Date
2005-03-01 U.S. Patent No. 6,862,179 Issue Date
2006-04-18 U.S. Patent No. 7,031,870 Issue Date
2008-03-04 U.S. Patent No. 7,339,490 Issue Date
2009-06-25 U.S. Patent No. 7,939,967 Priority Date
2010-07-12 U.S. Patent No. 9,310,855 Priority Date
2011-05-10 U.S. Patent No. 7,939,967 Issue Date
2016-04-12 U.S. Patent No. 9,310,855 Issue Date
2024-07-12 Complaint Filing Date

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

U.S. Patent No. 6,718,277 - "Atmospheric control within a building," Issued April 6, 2004

The Invention Explained

  • Problem Addressed: The patent describes conventional data center cooling as inefficient because it conditions air on an "overall, room-level basis" without accounting for the varied, location-specific needs of heat-generating components, resulting in "unnecessarily high operating expenses" and suboptimal efficiency (’277 Patent, col. 2:32-42).
  • The Patented Solution: The invention proposes a data-driven control system that uses numerous sensors to generate an "empirical atmospheric map" of conditions within the building. This map is then compared to a "template atmospheric map," representing an ideal state, to identify "pattern differentials" such as hot spots. Based on these differentials, the system determines corrective action and varies the "quantity, quality, and distribution" of the conditioned fluid to target specific locations as needed (’277 Patent, Abstract; col. 3:34-45; Fig. 2).
  • Technical Importance: This technology represents a shift from uniform, brute-force environmental control to a more granular and responsive system, potentially enabling significant energy savings in large facilities like data centers (Compl. ¶6).

Key Claims at a Glance

  • The complaint asserts at least independent claim 1 (Compl. ¶31).
  • Essential elements of claim 1 (as corrected) include:
    • supplying a conditioned fluid inside a building;
    • sensing at least one atmospheric parameter in a plurality of locations;
    • generating an empirical atmospheric map from the sensing results using software;
    • comparing the empirical map to a template atmospheric map; and
    • identifying pattern differentials between the two maps.
  • The complaint does not explicitly reserve the right to assert dependent claims.

U.S. Patent No. 6,854,287 - "Cooling system," Issued February 15, 2005

The Invention Explained

  • Problem Addressed: The patent notes that conventional data center air conditioning units often operate continuously at or near maximum power based on a "worst-case scenario," even when the actual heat load is reduced, leading to inefficient energy consumption (’287 Patent, col. 2:10-17).
  • The Patented Solution: The invention discloses a system of heat exchanger units (HEUs) that receive cooling fluid to cool air delivered to computer racks. The system senses temperatures at various locations and, in response, controls key variables such as the temperature of the cooling fluid or the rate of air delivery. A key feature is the ability to "individually manipulat[e] a mass flow rate of the cooling fluid supplied to each of the plurality of heat exchanger units," allowing for targeted cooling based on the specific heat loads of different racks (’287 Patent, Abstract; col. 4:32-52).
  • Technical Importance: The invention provides a method for localized and demand-responsive cooling, moving beyond monolithic cooling systems to optimize energy use based on real-time, granular thermal feedback (Compl. ¶6).

Key Claims at a Glance

  • The complaint asserts at least independent claim 1 (Compl. ¶34).
  • Essential elements of claim 1 include:
    • providing a plurality of heat exchanger units to receive and deliver air in a room;
    • supplying the units with cooling fluid from an air conditioning unit;
    • cooling the air via heat exchange;
    • sensing temperatures at one or more locations in the room;
    • controlling the cooling fluid temperature or air delivery in response to the sensed temperatures; and
    • wherein controlling air delivery includes individually manipulating the mass flow rate of cooling fluid to each heat exchanger unit.
  • The complaint does not explicitly reserve the right to assert dependent claims.

U.S. Patent No. 6,862,179 - "Partition for varying the supply of cooling fluid," Issued March 1, 2005

  • Technology Synopsis: This patent addresses a system for managing airflow in a data center plenum. It describes a controllable partition that can be manipulated to vary the supply of cooling fluid to different zones, allowing for localized control of cooling based on the specific thermal needs of racks within those zones (’179 Patent, Abstract).
  • Asserted Claims: At least independent claim 1 is asserted (Compl. ¶37).
  • Accused Features: The complaint accuses Digital Realty's cooling systems that include a "partition for varying the supply of cooling fluid" (Compl. ¶37).

U.S. Patent No. 7,031,870 - "Data center evaluation using an air re-circulation index," Issued April 18, 2006

  • Technology Synopsis: This patent discloses a method for evaluating data center performance by calculating an "air re-circulation index." The index is derived from the inlet, outlet, and supplied air temperatures of heat-dissipating devices (e.g., server racks). This metric allows operators to assess and optimize airflow efficiency (’870 Patent, Abstract).
  • Asserted Claims: At least independent claim 1 is asserted (Compl. ¶41).
  • Accused Features: The complaint accuses Digital Realty's operation of its data centers "in a manner that that infringes the '870 Patent" (Compl. ¶41).

U.S. Patent No. 7,339,490 - "Modular sensor assembly," Issued March 4, 2008

  • Technology Synopsis: This patent describes a modular sensor assembly designed for easy deployment on a computer rack. The invention features an elongate, flexible body with multiple addressable sensors interconnected to a common connector, simplifying the installation of a dense sensor network for monitoring environmental conditions (’490 Patent, Abstract).
  • Asserted Claims: At least independent claim 1 is asserted (Compl. ¶46).
  • Accused Features: The complaint accuses the use of "modular sensor assemblies for sensing conditions such as temperature at a computer rack" in Defendant's data centers (Compl. ¶46).

U.S. Patent No. 9,310,855 - "Flexible data center and methods for deployment," Issued April 12, 2016

  • Technology Synopsis: This patent relates to a modular and scalable method for deploying a data center. The method involves constructing a data center from a number of "blocks," where each block consists of one or more "perimeter structures" housing server racks and a central "connecting structure" for monitoring equipment, enabling flexible and staged build-outs (’855 Patent, Abstract).
  • Asserted Claims: At least independent claim 1 is asserted (Compl. ¶51). The complaint also references an exemplary claim chart for claim 8 (Compl. ¶51).
  • Accused Features: The complaint accuses Digital Realty's "flexible data centers," specifically identifying the DFW10 Data Center (Compl. ¶51).

U.S. Patent No. 7,939,967 - "Multiple Power Supply Control," Issued May 10, 2011

  • Technology Synopsis: This patent describes a redundant power supply system. When one power supply detects an anomalous condition with its energy source, it sends an alert signal that causes a standby power supply to transition to a normal output mode, ensuring an uninterrupted power supply to the electrical load (’967 Patent, Abstract).
  • Asserted Claims: At least independent claim 1 is asserted (Compl. ¶56).
  • Accused Features: The complaint accuses Digital Realty's data centers that use "multiple power supply control" (Compl. ¶56).

III. The Accused Instrumentality

Product Identification

The accused instrumentalities are Defendant's data centers and the systems and methods operated therein, with specific mention of the DFW11, DFW26, and DFW10 data centers in Texas, as well as other data centers across the United States (Compl. ¶¶31, 34, 51).

Functionality and Market Context

The complaint alleges that these data centers operate systems for cooling, controlling atmospheric conditions, performance monitoring, modular sensing, and power management that practice the claimed inventions (Compl. ¶¶31, 34, 41, 46, 56). Defendant is alleged to make, use, sell, and offer for sale products and services covered by the Asserted Patents within the district and elsewhere, deriving revenue from these operations (Compl. ¶¶25, 28). No probative visual evidence provided in complaint.


IV. Analysis of Infringement Allegations

The complaint references exemplary claim charts attached as exhibits, but these exhibits were not provided with the filed document. The following tables summarize the infringement theory based on the narrative allegations.

6,718,277 Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
supplying a conditioned fluid inside said building; Defendant's data centers operate cooling systems that supply conditioned air to the facility. ¶31 col. 7:12-14
sensing at least one atmospheric parameter in a plurality of locations inside said building; Defendant's data centers use sensors to monitor atmospheric conditions, such as temperature, at multiple locations. ¶31 col. 7:14-16
generating an empirical atmospheric map from the results of said sensing step using software...; Defendant's data center control systems allegedly process data from multiple sensors to create a representation of the atmospheric state. ¶31 col. 7:17-20
comparing said empirical atmospheric map to a template atmospheric map; Defendant's control systems allegedly compare the current atmospheric state to a target state or set of parameters. ¶31 col. 7:21-23
and identifying pattern differentials between said empirical and template atmospheric maps. Defendant's control systems allegedly identify deviations between the current and target atmospheric states to determine if corrective action is needed. ¶31 col. 7:24-27

6,854,287 Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
providing a plurality of heat exchanger units configured to receive air from said room and to deliver air to said room; Defendant's data centers utilize multiple heat exchanger units as part of their cooling infrastructure. ¶34 col. 13:20-23
supplying said plurality of heat exchanger units with cooling fluid from an air conditioning unit; An air conditioning unit or chiller supplies cooling fluid to the heat exchanger units in Defendant's data centers. ¶34 col. 13:24-26
cooling said received air through heat exchange with the cooling fluid...; Air within the data centers is cooled by passing it through the heat exchanger units. ¶34 col. 13:27-29
sensing temperatures at one or more locations in said room; Defendant's data centers use temperature sensors to monitor thermal conditions. ¶34 col. 13:30-32
controlling at least one of the temperature of said cooling fluid and said air delivery...in response to said sensed temperatures...; Defendant's cooling systems allegedly adjust their operation based on feedback from temperature sensors. ¶34 col. 13:33-38
wherein the step of controlling said air delivery...comprises individually manipulating a mass flow rate of the cooling fluid supplied to each...heat exchanger units. Defendant's cooling systems allegedly have the capability to control the flow of cooling fluid to individual heat exchanger units based on localized demand. ¶34 col. 13:39-44

Identified Points of Contention:

  • Technical Questions: A primary question for the ’277 Patent will be evidentiary: what proof exists that Defendant’s systems perform the specific functions of generating an "empirical atmospheric map" and comparing it to a "template map"? The complaint lacks specific factual allegations about the software or control logic used in the accused data centers.
  • Scope Questions: For the ’287 Patent, a key dispute may arise over the scope of "individually manipulating a mass flow rate." The analysis will question whether this requires independent, discrete control for every single heat exchanger unit, or if it can be read to cover zonal control systems where groups of units are controlled together.

V. Key Claim Terms for Construction

Term from the ’277 Patent: "empirical atmospheric map"

  • Context and Importance: This term is central to defining the invention's data-driven approach. Its construction will determine whether a simple collection and aggregation of sensor data points meets the limitation, or if a more complex, processed data structure (e.g., a thermal contour map) is required.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The patent states that thermal mapping software is "capable of processing thousands of input data points... and outputting map-like information," which could be argued to cover any systematically processed set of sensor data (’277 Patent, col. 4:41-43).
    • Evidence for a Narrower Interpretation: The specification provides a more specific definition, stating a thermal map "is composed of temperature contours that define various isothermal regions, or isotherms, of distinct temperatures," suggesting a specific type of graphical or data representation beyond raw data points (’277 Patent, col. 4:44-47).

Term from the ’287 Patent: "individually manipulating"

  • Context and Importance: The definition of "individually" is critical to the scope of infringement for claim 1. It will determine the required granularity of control over the cooling system. Practitioners may focus on this term because it distinguishes between targeted, per-unit control and broader, zonal control.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The claim requires a system that "comprises" this step, which might be met if the system has the capability for individual control, even if it is often operated in a grouped or uniform mode.
    • Evidence for a Narrower Interpretation: Claim 1 requires manipulating the flow "supplied to each of the plurality of heat exchanger units." The specification supports this reading by describing how HEUs can be positioned and operated to supply different amounts of cooling to racks with different heat loads, implying discrete, per-unit control is a core aspect of the invention (’287 Patent, col. 5:1-12).

VI. Other Allegations

Willful Infringement:

The complaint alleges willful infringement for U.S. Patent Nos. 7,031,870; 7,339,490; 9,310,855; and 7,939,967 (Compl. ¶¶42, 47, 52, 57). The basis for these allegations is post-suit knowledge, asserting that Defendant was put on notice of its infringement "since at least the filing of this Complaint" and, on information and belief, "did not take any action to stop its infringement" (Compl. ¶¶40, 45, 50, 55).


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

  1. A central issue will be one of evidentiary sufficiency: The complaint makes broad allegations that Defendant’s standard data center operations infringe claims requiring specific data processing and control logic (e.g., generating an "empirical atmospheric map" or an "air re-circulation index"). The case may depend on whether these allegations are supported with sufficient factual detail to state a plausible claim for relief under the Iqbal/Twombly pleading standard, or if they are deemed conclusory.
  2. A second core issue will be one of definitional scope: The dispute will likely focus on whether the patented technologies, as defined by key claim terms like "individually manipulating" and "empirical atmospheric map," cover the standard, commercially available control systems used in modern data centers, or if they are limited to the specific, and potentially distinct, implementations described in the patents.
  3. A procedural question concerning standing may arise. The complaint notes that Plaintiff Valtrus's right to assert patents has been challenged in an unrelated case, prompting the addition of Plaintiff KPI "in an abundance of caution" (Compl. p. 1). The relationship between these two entities and their respective rights to enforce the asserted patents may become a focus of early motions.