DCT

2:25-cv-00290

Pegasus Wireless Innovation LLC v. AT&T Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 2:25-cv-00290, E.D. Tex., 03/12/2025
  • Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because AT&T maintains a "regular and established" place of business in the district, including retail stores, operating base stations, and other facilities, and has previously admitted to or not contested venue in the district in other patent cases.
  • Core Dispute: Plaintiff alleges that Defendant’s 4G/LTE and 5G wireless networks and the devices operating on them infringe five patents related to fundamental wireless telecommunications technologies.
  • Technical Context: The technology at issue involves core operational methods for 4G/LTE and 5G wireless systems, such as channel scheduling, signal synchronization, and resource management, which are central to the functioning of modern mobile networks.
  • Key Procedural History: The Asserted Patents were originally assigned to KT Corporation, a Korean telecommunications company, which exclusively licensed them to Plaintiff Pegasus. Plaintiff alleges the patents are essential to the 4G/LTE and 5G standards developed by the 3GPP standards body. The complaint states that Plaintiff provided Defendant with notice of the patents and an offer to license them on fair, reasonable, and non-discriminatory (FRAND) terms beginning in December 2022, but that subsequent negotiations were unsuccessful.

Case Timeline

Date Event
2016-07-15 ’530 Patent Priority Date
2016-10-07 ’958 Patent Priority Date
2016-10-27 ’079 Patent Priority Date
2016-11-16 ’720 Patent Priority Date
2017-05-26 ’218 Patent Priority Date
2019-04-03 KT launches first commercial 5G network
2020-09-29 ’530 Patent Issue Date
2021-01-19 ’720 Patent Issue Date
2021-02-16 ’079 Patent Issue Date
2022-09-07 Pegasus acquires exclusive license to Asserted Patents
2022-12-16 Pegasus sends notice letter with license offer to AT&T
2023-01-31 ’958 Patent Issue Date
2023-06-06 ’218 Patent Issue Date
2025-03-12 Complaint Filing Date

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

U.S. Patent No. 10,925,079 - “Method and Device for Scheduling Uplink Signal and Downlink Data Channel in Next Generation Wireless Network”

  • Patent Identification: U.S. Patent No. 10,925,079, “Method and Device for Scheduling Uplink Signal and Downlink Data Channel in Next Generation Wireless Network,” issued February 16, 2021 (Compl. ¶56).

The Invention Explained

  • Problem Addressed: In modern 5G (New Radio or "NR") networks, a flexible frame structure is needed to support various services with different requirements (e.g., high-speed data versus ultra-low latency). The patent’s background section notes that an "ambiguity problem may occur" when defining the timing relationship between a base station and a user device if they are using different "numerologies"—foundational parameters like subcarrier spacing that define the time-frequency grid ('079 Patent, col. 1:52-60).
  • The Patented Solution: The invention provides a method for a base station to configure and transmit scheduling information that resolves this timing ambiguity. The system accounts for the different numerologies of the control channel and the data channel by including "timing gap information" in the scheduling data and applying a specific computational process to determine the correct slot index for the scheduled data channel based on the different subcarrier spacing values and the timing gap ('079 Patent, Abstract; col. 11:13-34).
  • Technical Importance: This technology allows for the coexistence and efficient scheduling of diverse services on a single 5G network by providing a clear framework for coordinating timing when the underlying communication parameters for control and data signals are different (Compl. ¶61).

Key Claims at a Glance

  • The complaint asserts independent claims 1, 6, and 8 (Compl. ¶62).
  • Representative independent claim 6, an apparatus claim directed to a base station, includes the following essential elements:
    • A controller that configures scheduling information for an uplink (UL) signal and a downlink (DL) data channel.
    • A transmitter that sends this information to a user device via a DL control channel.
    • The scheduling information includes timing relationship configuration information, including timing gap data, between the DL control channel and the DL data channel.
    • A numerology of the carrier for the DL control channel is different from the numerology of the carrier for the DL data channel.
    • A slot index for the DL data channel is computed as a function of four inputs: the DL control channel's slot index, the subcarrier spacing value for the DL control channel's carrier, the subcarrier spacing value for the DL data channel's carrier, and the timing gap value.
  • The complaint states infringement of claims "including but not limited to" the identified independent claims (Compl. ¶62).

U.S. Patent No. 11,569,958 - “Method and Apparatus for Transmitting Reference Signal for Frequency Offset Estimation in New Wireless Communication System”

  • Patent Identification: U.S. Patent No. 11,569,958, “Method and Apparatus for Transmitting Reference Signal for Frequency Offset Estimation in New Wireless Communication System,” issued January 31, 2023 (Compl. ¶74).

The Invention Explained

  • Problem Addressed: The patent's background explains that in 5G NR systems, synchronization signals are expected to be restricted to narrow frequency bands to support flexible numerologies and reduce overhead ('958 Patent, col. 1:53-60). This creates a challenge for functions like frequency offset estimation, which may require reference signals that span a wider bandwidth to maintain accuracy.
  • The Patented Solution: The invention proposes a system where a base station transmits a synchronization signal in one set of symbols, and separately transmits a distinct "reference signal" in a second set of symbols. The configuration for this separate reference signal is communicated to the user device via a Radio Resource Control (RRC) signal, and the reference signal itself is configured "based on a numerology," allowing it to be adapted to the specific time-frequency structure being used ('958 Patent, Abstract; col. 2:50-58).
  • Technical Importance: This approach decouples the narrowband synchronization signal from other necessary reference signals, allowing the system to gain the efficiency and flexibility of a narrow sync signal while still providing robust, numerology-aware reference signals for tasks like frequency tracking and channel state estimation (Compl. ¶79).

Key Claims at a Glance

  • The complaint asserts independent claims 1, 6, and 11 (Compl. ¶80).
  • Representative independent claim 6, an apparatus claim directed to a base station, includes the following essential elements:
    • A controller, transmitter, and receiver.
    • The controller directs the transmitter to send a synchronization signal in a first set of one or more symbols.
    • The controller directs the transmitter to send an RRC signal containing configuration information for a reference signal.
    • The controller directs the transmitter to send the reference signal in a second set of one or more symbols, based on the configuration information.
    • The reference signal is configured based on a numerology.
  • The complaint states infringement of claims "including but not limited to" the identified independent claims (Compl. ¶80).

U.S. Patent No. 10,897,720 - “Method and Apparatus for Transmitting and Receiving Downlink Pre-emption Indication Data in Next Generation Wireless Network”

  • Patent Identification: U.S. Patent No. 10,897,720, “Method and Apparatus for Transmitting and Receiving Downlink Pre-emption Indication Data in Next Generation Wireless Network,” issued January 19, 2021 (Compl. ¶95).
  • Technology Synopsis: The patent addresses the need to manage traffic with different priorities in a 5G network, such as when high-priority, low-latency communication must interrupt an ongoing lower-priority data transmission ('720 Patent, col. 1:47-56). The patented solution involves a user device receiving configuration information that instructs it whether and how to monitor for a "downlink preemption indication," which is then transmitted via a group-common control channel to signal that a resource has been preempted (Compl. ¶¶100-101).
  • Asserted Claims: Independent claims 1, 4, and 7 are asserted (Compl. ¶101).
  • Accused Features: The complaint accuses the functionalities within AT&T's 5G network and devices that manage downlink preemption in accordance with 3GPP Release 15 standards, including the configuration of devices to monitor for preemption and the transmission of preemption indicators (Compl. ¶¶103-104).

U.S. Patent No. 10,791,530 - “Method and Device for Transmitting/Receiving Synchronization Signal and System Information for Terminal in New Wireless Access Network”

  • Patent Identification: U.S. Patent No. 10,791,530, “Method and Device for Transmitting/Receiving Synchronization Signal and System Information for Terminal in New Wireless Access Network,” issued September 29, 2020 (Compl. ¶116).
  • Technology Synopsis: The patent relates to managing flexible numerologies (i.e., different subcarrier spacings) for the transmission of system information in a 5G network (’530 Patent, col. 1:21-27). The invention describes a method where a base station transmits a synchronization signal and certain system information on a physical broadcasting channel (PBCH); this PBCH transmission also signals to the user device which subcarrier spacing to use for receiving other system information that is not transmitted via the PBCH (Compl. ¶¶121-122).
  • Asserted Claims: Independent claims 1, 5, and 9 are asserted (Compl. ¶122).
  • Accused Features: The complaint accuses the methods used in AT&T's 5G network (Release 15 or later) for defining and signaling subcarrier spacings for system information, alleging the network signals the subcarrier spacing for non-PBCH system information via the PBCH, in accordance with the claims (Compl. ¶¶124-125).

U.S. Patent No. 11,671,218 - “Method for Configuring Frequency Resource About Component Carrier for New Radio and Apparatuses Thereof”

  • Patent Identification: U.S. Patent No. 11,671,218, “Method for Configuring Frequency Resource About Component Carrier for New Radio and Apparatuses Thereof,” issued June 6, 2023 (Compl. ¶137).
  • Technology Synopsis: The patent addresses the configuration of frequency resources to support devices with varying bandwidth capabilities on a single wideband component carrier (CC) in a 5G network (’218 Patent, col. 1:47-55). The described solution involves establishing a "common" resource block index that numbers resources across the entire carrier. Individual "bandwidth parts" (BWPs) assigned to different devices are then located based on a starting index within this common numbering scheme, while also using a BWP-specific index for local operations (Compl. ¶¶142-143).
  • Asserted Claims: Independent claims 1, 7, and 12 are asserted (Compl. ¶143).
  • Accused Features: The complaint accuses the BWP management functions in AT&T's 5G network (Release 15 or later) that allegedly define BWP locations using a starting index relative to a common resource block index for the entire component carrier (Compl. ¶¶145-146).

III. The Accused Instrumentality

Product Identification

  • The accused instrumentalities are AT&T's 4G/LTE and 5G mobile networks, including the base stations and related equipment, as well as the "Accused Devices" that operate on these networks (Compl. ¶¶39-40, 63). The complaint identifies specific smartphones, such as the Google Pixel and Motorola razr+ series, as examples of Accused Devices (Compl. ¶43). For the patents analyzed in detail, the infringement allegations are directed at instrumentalities operating in compliance with 5G standards, specifically 3GPP Release 15 or later (Compl. ¶¶63, 81).

Functionality and Market Context

  • The accused network provides nationwide mobile telecommunication services, which the complaint alleges covers over 99% of the U.S. population (Compl. ¶41). The complaint alleges these networks and devices operate according to the 3GPP 4G/LTE and 5G standards, which purportedly practice the inventions of the Asserted Patents (Compl. ¶39). The complaint provides a screenshot from AT&T's website showing its 5G and 4G/LTE coverage map for East Texas (Compl. ¶44, Fig. 1).

IV. Analysis of Infringement Allegations

’079 Patent Infringement Allegations

Claim Element (from Independent Claim 6) Alleged Infringing Functionality Complaint Citation Patent Citation
a controller configured to configure scheduling information for scheduling an uplink (UL) signal and a downlink (DL) data channel...and a transmitter configured to transmit the scheduling information...through a DL control channel AT&T base stations configure and transmit scheduling information to user equipment using Downlink Control Information (DCI) on a Physical DL Control Channel (PDCCH). ¶65 col. 10:20-30
wherein the scheduling information includes timing relationship configuration information between the DL control channel and the DL data channel The DCI specifies the timing relationship between the control channel and the data channel through time domain resource assignment and a PDSCH-to-HARQ_feedback timing indicator. ¶65 col. 11:13-24
wherein a numerology of a carrier for receiving the DL control channel is different from a numerology of a carrier of the DL data channel The 5G standard allegedly specifies the use of different numerologies (subcarrier spacings) for the DL control channel and the DL data channel. ¶65 col. 11:25-34
wherein the timing relationship configuration information includes timing gap information...and wherein a slot index of the DL data channel is computed as a function of: a slot index of the DL control channel, a value of a subcarrier spacing...of the DL control channel, a value of a subcarrier spacing...of the DL data channel, and a value of the timing gap information The slot index of the DL data channel is allegedly computed based on the control channel's slot index, the different subcarrier spacings of the control and data channels, and timing gap information (K0), as specified in the 5G standard. ¶65 col. 12:54-65
  • Identified Points of Contention:
    • Scope Questions: The case may turn on whether compliance with the cited 3GPP 5G standards (e.g., TS 38.211, TS 38.214) necessarily results in infringement of claim 6. A question for the court could be: "Does the method for determining a data channel's slot index as specified in the 3GPP Release 15 standard meet the 'computed as a function of' limitation of claim 6, or are there material differences in the inputs or the computational process?"
    • Technical Questions: The analysis will likely focus on the precise mapping between the standard's parameters and the claim's functional requirements. A potential question is: "What evidence does the complaint provide that AT&T's network actually implements the optional or configurable aspects of the 5G standard in a way that practices the claimed method of using different numerologies for control and data channels and computing slot indices based on the claimed four-part function?"

’958 Patent Infringement Allegations

Claim Element (from Independent Claim 6) Alleged Infringing Functionality Complaint Citation Patent Citation
a controller which controls...a transmitter...to...transmit...a synchronization signal in a first set including one or more symbols AT&T base stations transmit synchronization signals (SS) to user equipment. ¶83 col. 16:16-18
transmit...a radio resource control (RRC) signal including configuration information about a reference signal AT&T base stations transmit RRC signals that configure reference signals, such as by configuring an NZP-CSI-RS-ResourceSet. ¶83 col. 16:19-21
transmit...the reference signal in a second set including one or more symbols, based on the configuration information Based on the RRC configuration, AT&T base stations transmit the configured reference signal (e.g., CSI-RS) in a separate set of symbols. ¶83 col. 16:22-24
wherein the reference signal is configured, based on a numerology The transmitted reference signal is allegedly configured based on a numerology as specified in the 5G standard. ¶83 col. 16:25-26
  • Identified Points of Contention:
    • Scope Questions: A central dispute may be whether the "reference signal" recited in the claims, which the complaint maps to the CSI-RS in the 5G standard, is the same type of signal contemplated by the patent. This raises the question: "Does the term 'reference signal' in claim 6, described in the patent's title in the context of 'Frequency Offset Estimation,' read on the Channel State Information Reference Signal (CSI-RS) of the 5G standard, which has a primary purpose of channel state estimation?"
    • Technical Questions: The infringement theory hinges on the reference signal being "configured, based on a numerology." A key technical question will be the nature of this relationship. "Does the standard require that the configuration of the CSI-RS is functionally dependent on the numerology (e.g., subcarrier spacing), or is the CSI-RS merely transmitted within a system that happens to use a particular numerology, potentially creating a mismatch with the claim language?"

V. Key Claim Terms for Construction

Term: "numerology" (from ’079 Patent and ’958 Patent)

  • Context and Importance: This term is foundational to both patents, which are premised on managing communications in a "flexible numerology" environment. The definition is critical for establishing key limitations, such as the numerologies being "different" (’079 Patent) or a signal being configured "based on a numerology" (’958 Patent). Practitioners may focus on this term because its scope will determine whether the general architectural principles of the 5G standard fall within the claims.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specifications use the term in the context of a set of parameters defining the radio interface. The ’079 Patent refers to supporting "a plurality of numerologies with subcarrier spacing (SCS) values different from one another" ('079 Patent, col. 1:48-51), suggesting it is a collection of parameters, not just one.
    • Evidence for a Narrower Interpretation: Both patents consistently tie the concept of numerology to specific technical parameters, primarily subcarrier spacing and the resulting symbol or slot duration. A party could argue from language like "numerology types comprised of each set of a subcarrier spacing and a subframe (or TTI) length" that the term requires this specific combination of parameters, and cannot be interpreted more broadly ('530 Patent, col. 6:39-42, incorporated by reference in later patents).

Term: "computed as a function of" (from ’079 Patent)

  • Context and Importance: This functional language in claim 6 of the ’079 Patent defines the core inventive step. The infringement analysis will depend entirely on whether the accused system performs a computation that uses the four specifically enumerated inputs to produce the claimed output.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The plain meaning of "function of" suggests that the output (slot index) depends on the four listed inputs. This could encompass any method where these inputs are used to determine the result, without being limited to a single formula.
    • Evidence for a Narrower Interpretation: Dependent claims and the specification may provide a specific formula for this computation, floor(n * B/A) + k ('079 Patent, as described in claim 1). A defendant may argue that this specific formula should be used to narrow the scope of the broader functional language in independent claim 6, contending that any other method of using those four inputs falls outside the claim.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges both induced and contributory infringement for all asserted patents. Inducement is based on allegations that AT&T provides its 4G/LTE and 5G network and encourages customers to purchase and use infringing devices on it (Compl. ¶¶ 85-86). Contributory infringement is based on allegations that the accused devices are especially designed to operate in an infringing manner on AT&T's network and are not staple articles of commerce suitable for substantial non-infringing use (Compl. ¶¶ 67, 88).
  • Willful Infringement: Willfulness is alleged based on Defendant’s purported knowledge of the patents from multiple sources. The complaint alleges knowledge stemming from KT Corporation's declarations of the patents as essential to the 3GPP standards, of which AT&T is a member; from direct notice via a letter sent by Pegasus in December 2022; from subsequent, unsuccessful licensing negotiations; and from the filing of the complaint itself (Compl. ¶¶ 71, 92).

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

  • A core issue will be one of standard conformance versus claim scope: Do the functionalities mandated by the 3GPP Release 15 (and later) standards, which AT&T's network allegedly implements, necessarily practice every element of the asserted claims? The case for all five patents will likely involve a deep technical analysis of whether it is possible to be standard-compliant without infringing.
  • A second central issue will be one of definitional precision: The disputes will likely turn on the construction of key technical terms. For instance, will functional language like "computed as a function of" be interpreted broadly to cover the standard's methodology, or will it be narrowed to the specific mathematical formulas disclosed in the patent's specification, potentially creating a non-infringement defense?
  • Finally, a key question for damages will relate to commercial conduct: Did AT&T’s alleged failure to provide a counteroffer during FRAND licensing negotiations, particularly after receiving express notice of the patents in December 2022, rise to the level of objective recklessness required to support a finding of willful infringement?