DCT

6:13-cv-00638

Acqis LLC v. Alcatel Lucent USA Inc

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Key Events
Amended Complaint

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 6:13-cv-00638, E.D. Tex., 03/18/2014
  • Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant conducts substantial business in the district, including through its offices in Longview and Plano.
  • Core Dispute: Plaintiff alleges that Defendant’s modular computer systems, which utilize the Advanced Telecommunications Computing Architecture (ATCA) platform, infringe eleven U.S. patents related to modular computer architecture, high-speed data transfer, and data security.
  • Technical Context: The technology at issue concerns modular computing systems, such as blade servers, which concentrate processing power into a compact chassis to increase efficiency and density, a key architecture in telecommunications and data center infrastructure.
  • Key Procedural History: The complaint notes that several of the asserted patents or patents from the same family were previously litigated against IBM, resulting in a 2011 jury verdict of infringement and validity, followed by a settlement. Additionally, the complaint states that U.S. Patent Nos. 7,363,416, 8,041,873, and RE42,814 survived reexamination proceedings at the U.S. Patent and Trademark Office with most or all claims confirmed as patentable, a fact that may be presented to underscore the patents' resilience to validity challenges.

Case Timeline

Date Event
1999-05-14 Earliest Priority Date for all Patents-in-Suit
2008-04-22 U.S. Patent No. 7,363,416 Issues
2009-04-04 Plaintiff files prior litigation against IBM and others
2010-03-09 U.S. Patent No. 7,676,624 Issues
2010-04-27 U.S. Patent No. RE41,294 Issues
2010-10-19 U.S. Patent No. 7,818,487 Issues
2010-11-23 U.S. Patent No. RE41,961 Issues
2011-02-01 Trial against IBM results in jury finding of infringement
2011-10-04 U.S. Patent No. RE42,814 Issues
2011-10-18 U.S. Patent No. 8,041,873 Issues
2011-11-29 U.S. Patent No. RE42,984 Issues
2011-12-01 Plaintiff and IBM enter settlement agreement
2012-01-17 U.S. Patent No. RE43,119 Issues
2012-02-07 U.S. Patent No. RE43,171 Issues
2013-05-03 Plaintiff notifies Defendant of ten patents in its portfolio
2013-08-27 U.S. Patent No. RE44,468 Issues
2013-09-11 Plaintiff serves initial complaint, notifying Defendant of the ’468 Patent
2014-03-18 Plaintiff files Second Amended Complaint

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

U.S. Patent No. 7,363,416 - "Computer System Utilizing Multiple Computer Modules with Password Protection"

The Invention Explained

  • Problem Addressed: The patent’s background section describes the inefficiency and cost of consumers owning separate desktop and laptop computers, which involves duplicating components and manually transferring data. It also notes that conventional dual-processor systems suffer from performance bottlenecks because they share resources like memory and disk drives. (’416 Patent, col. 1:20-2:67).
  • The Patented Solution: The invention is a modular computer system where multiple self-contained "computer modules"—each with its own processor, memory, and hard drive—can operate independently within a single console that provides shared peripherals like a monitor and keyboard (’416 Patent, Abstract; col. 4:10-25). This architecture is designed to provide hardware redundancy and fault tolerance. A key feature is a password protection mechanism, stored in flash memory on the module, to prevent unauthorized use of the module's hard disk drive if it is removed from the console (’416 Patent, col. 7:1-8).
  • Technical Importance: The described modular architecture provides a path toward greater computing density and operational flexibility, moving beyond the limitations of single-motherboard, shared-resource systems common at the time. (Compl. ¶23).

Key Claims at a Glance

The complaint asserts infringement of "one or more of the claims" of the ’416 Patent without specifying which claims are at issue (Compl. ¶28). Claim 4 is a representative independent system claim.

  • A computer system comprising:
    • A console with a power supply and at least two coupling sites.
    • A plurality of computer modules, each coupled to a coupling site.
    • Each computer module comprising a processing unit, a main memory, and a flash memory device configured to store a password for controlling access to the computer module.
    • An interface controller coupled to a differential signal channel for communicating an encoded serial bit stream of Peripheral Component Interconnect (PCI) bus transaction data.

U.S. Patent No. 7,676,624 - "Multiple Module Computer System and Method Including Differential Signal Channel Comprising Unidirectional Serial Bit Channels"

The Invention Explained

  • Problem Addressed: The patent specification explains that standard computer interfaces like the Peripheral Component Interconnect (PCI) bus are not "cable friendly" and require a large number of conductive lines and connector pins. This makes them costly, bulky, and unsuitable for connecting independent computer modules within a shared chassis or across a backplane. (’624 Patent, col. 3:6-4:3).
  • The Patented Solution: The invention describes an apparatus and method for bridging two independent computer buses (e.g., PCI buses) using a high-speed, low-pin-count serial channel. The system encodes parallel bus signals into serial data for transmission over a differential signal channel—which is faster and more noise-resistant—and then decodes the signals back into their parallel format at the receiving end (’624 Patent, Abstract; col. 5:2-6:5). This allows for high-bandwidth communication between modules using a cable-friendly interface.
  • Technical Importance: This technology for serializing parallel bus data was a key enabler for the development of modular computing architectures, such as the blade servers and ATCA platforms at issue, which rely on high-speed backplanes for inter-module communication. (Compl. ¶23).

Key Claims at a Glance

The complaint asserts infringement of "one or more of the claims" of the ’624 Patent without further specification (Compl. ¶37). Claim 1 is a representative independent system claim.

  • A computer system comprising:
    • A console with a power supply and at least two coupling sites.
    • A plurality of computer modules coupled to the console.
    • Each module comprising a processing unit and a main memory.
    • An interface controller coupled to a differential signal channel.
    • The differential signal channel comprises two sets of unidirectional serial bit channels which transmit data in opposite directions.

Multi-Patent Capsule: U.S. Patent No. 7,818,487

  • Patent Identification: U.S. Patent No. 7818487, "Multiple Module Computer System and Method Using Differential Signal Channel Including Unidirectional, Serial Bit Channels," issued October 19, 2010.
  • Technology Synopsis: This patent is a continuation of the ’624 Patent and further describes a modular computer system that uses a differential signal channel with unidirectional serial bit channels to interface computer modules. This architecture is designed to overcome the physical and electrical limitations of traditional parallel buses in a modular environment.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶46).

Multi-Patent Capsule: U.S. Patent No. 8,041,873

  • Patent Identification: U.S. Patent No. 8041873, "Multiple Module Computer System and Method Including Differential Signal Channel Comprising Unidirectional Serial Bit Channels to Transmit Encoded Peripheral Component Interconnect Bus Transaction Data," issued October 18, 2011.
  • Technology Synopsis: This patent also relates to the technology for transmitting encoded PCI bus transaction data over a high-speed serial interface in a modular computer system. It describes the use of an interface controller to manage the encoding and decoding of the PCI data stream for transmission between modules.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶55).

Multi-Patent Capsule: U.S. Patent No. RE41,294

  • Patent Identification: U.S. Patent No. RE41294, "Password Protected Modular Computer Method and Device," issued April 27, 2010.
  • Technology Synopsis: This patent describes a method for securing a modular computer. It claims a method that includes inserting a computer module into a console, executing a security program, and prompting for a user password, which is compared against a password stored on the module to control access.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶64).

Multi-Patent Capsule: U.S. Patent No. RE41,961

  • Patent Identification: U.S. Patent No. RE41961, "Password Protected Modular Computer Method and Device," issued November 23, 2010.
  • Technology Synopsis: As a reissue of a related patent, this patent covers a similar password protection method for a modular computer device. It focuses on the steps of applying power, executing a security program from a mass memory device, and prompting for a user password to authorize use.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶73).

Multi-Patent Capsule: U.S. Patent No. RE42,814

  • Patent Identification: U.S. Patent No. RE42814, "Password Protected Modular Computer Method and Device," issued October 4, 2011.
  • Technology Synopsis: This patent is another reissue in the same family, directed at methods for operating a modular computer system. The claimed method involves inserting a module into a console and using a password stored in a programmable memory device on the module to prevent unauthorized use of its hard disk drive.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶82).

Multi-Patent Capsule: U.S. Patent No. RE43,171

  • Patent Identification: U.S. Patent No. RE43171, "Data Security Method and Device for Computer Modules," issued February 7, 2012.
  • Technology Synopsis: This patent describes a security system for computer modules that involves reading a security identification number from the module and comparing it to one stored in the console. The outcome of the comparison determines the security status and operating privileges of the system.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶91).

Multi-Patent Capsule: U.S. Patent No. RE44,468

  • Patent Identification: U.S. Patent No. RE44468, "Data Security Method and Device for Computer Modules," issued August 27, 2013.
  • Technology Synopsis: A continuation of the technology in the '171 Patent, this patent also describes a data security method based on matching security identifiers stored on the computer module and the console. The security status determined from this matching process controls the level of access to the computer system's resources.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶100).

Multi-Patent Capsule: U.S. Patent No. RE42,984

  • Patent Identification: U.S. Patent No. RE42984, "Data Security Method and Device for Computer Modules," issued November 29, 2011.
  • Technology Synopsis: This patent is also directed to the data security method where a security ID on an attached computer module is compared to a security ID on a peripheral console. Based on the comparison, a security status is selected which determines the security level for operating the computer system, such as restricting data access.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶109).

Multi-Patent Capsule: U.S. Patent No. RE43,119

  • Patent Identification: U.S. Patent No. RE43119, "Password Protected Modular Computer Method and Device," issued January 17, 2012.
  • Technology Synopsis: This patent covers a method of operating a modular computer system that involves using a password stored in a programmable memory device on the module to prevent unauthorized access. The method includes steps of inserting the module, executing a security program, and prompting for the password.
  • Asserted Claims: One or more claims.
  • Accused Features: Alcatel-Lucent products utilizing the ATCA Hardware Platform or ATCA V2 Platform (Compl. ¶118).

III. The Accused Instrumentality

Product Identification

The accused products are Alcatel-Lucent's modular computing products that utilize its ATCA Hardware Platform or ATCA V2 Platform, with the complaint specifically identifying the Alcatel-Lucent 5060 Media Gateway Controller as an example (Compl. ¶24, ¶28).

Functionality and Market Context

The complaint alleges that the accused products are "modular computer systems" in which multiple computer modules are housed within a single chassis or enclosure (Compl. ¶23). This architecture, known as ATCA (Advanced Telecommunications Computing Architecture), is designed to provide greater processing density, simplified cabling, and reduced power consumption compared to traditional computer configurations (Compl. ¶23). The complaint asserts that such systems have become "extremely popular" in response to market demand for increased computing power at a lower cost of ownership (Compl. ¶23).
No probative visual evidence provided in complaint.

IV. Analysis of Infringement Allegations

The complaint does not provide specific factual allegations mapping features of the accused products to the elements of any asserted claim. The following charts summarize the infringement theory based on the general allegations against the accused product category.

’416 Patent Infringement Allegations

Claim Element (from Independent Claim 4) Alleged Infringing Functionality Complaint Citation Patent Citation
a console comprising a power supply, a first coupling site and a second coupling site... The complaint alleges the accused ATCA platforms are modular systems comprising a chassis, or console, that houses multiple computer modules (Compl. ¶23-24). ¶28 col. 3:15-20
a plurality of computer modules; each computer module coupled to one of the coupling site... The complaint alleges the accused products are modular computer systems containing multiple computer modules (Compl. ¶23-24). ¶28 col. 3:20-25
wherein each of the computer modules comprises a processing unit, a flash memory device configured to store a password for controlling access to the computer module, a main memory coupled to the processing unit... The complaint does not provide specific factual allegations regarding a password protection feature, alleging only that the accused products are covered by the patent's claims (Compl. ¶28). ¶28 col. 27:5-9
an interface controller coupled to a differential signal channel for communicating an encoded serial bit stream of Peripheral Component Interconnect (PCI) bus transaction. The complaint does not provide specific factual allegations regarding the accused products' use of an interface controller for transmitting encoded PCI bus data (Compl. ¶28). ¶28 col. 27:42-46

’624 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
a console comprising a power supply, a first coupling site and a second coupling site... The complaint alleges the accused ATCA platforms are modular systems comprising a chassis, or console, that houses multiple computer modules (Compl. ¶23-24). ¶37 col. 3:15-20
a plurality of computer modules, each coupled to one of the coupling sites... The complaint alleges the accused products are modular computer systems containing multiple computer modules (Compl. ¶23-24). ¶37 col. 3:20-25
wherein each of the computer modules comprises a processing unit, and a main memory coupled to the processing unit; and an interface controller coupled to a differential signal channel... The complaint does not provide specific factual allegations regarding the internal architecture of the accused modules or their use of a claimed interface controller (Compl. ¶37). ¶37 col. 27:38-42
wherein the differential signal channel comprises two sets of unidirectional serial bit channels which transmit data in opposite directions. The complaint does not provide specific factual allegations regarding the structure or operation of the data channels within the accused products (Compl. ¶37). ¶37 col. 27:43-46

Identified Points of Contention

  • Evidentiary Question: The complaint offers conclusory allegations that the accused ATCA-based products infringe. A central question for the case will be what technical evidence is presented to show that these products, which are based on industry standards for telecommunications hardware, practice the specific "password protection" and "encoded PCI bus transaction" methods required by the claims of the ’416 Patent.
  • Technical and Scope Question: The infringement analysis will likely focus on whether the data transport protocols used in ATCA backplanes (which may include standards like Ethernet or Serial RapidIO) fall within the scope of the claimed "differential signal channel comprising two sets of unidirectional serial bit channels" as recited in the ’624 Patent. The complaint does not provide detail on which internal communication links of the accused products are alleged to infringe.

V. Key Claim Terms for Construction

The Term: "password" (from the ’416 Patent and related patents)

  • Context and Importance: This term is fundamental to the security-related patents. Its construction will determine whether a variety of authentication mechanisms could infringe, or if infringement requires a traditional, user-entered secret string. Practitioners may focus on this term because if the accused products use a security mechanism like a hardware key, digital certificate, or other non-textual credential, the case may turn on whether that mechanism qualifies as a "password."
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification refers to the password as providing a "permanent 'finger print' on the attached computer module" and being potentially a "permanent password or user identification code," which could suggest a broader meaning beyond a user-changeable string (’416 Patent, col. 7:6-8).
    • Evidence for a Narrower Interpretation: The specification also describes a method including "prompting for a user password from a user on a display" and storing a "programmable user password" in flash memory, which suggests a conventional, user-entered character string (’416 Patent, col. 7:18-24; col. 9:45-55).

The Term: "unidirectional serial bit channels" (from the ’624 Patent and related patents)

  • Context and Importance: This term defines the core data transport mechanism. The dispute may turn on whether the physical and logical architecture of the data links in the accused ATCA backplane constitutes "unidirectional" channels. Practitioners may focus on this term because many high-speed serial protocols are packet-based and operate over physically bidirectional links, which may create a mismatch with the claim language.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The patent describes the object of the invention in functional terms, such as creating a "cable friendly" interface that is "faster, consumes less power, and generates less noise" (’624 Patent, col. 4:58-64). An argument could be made that any serial link achieving these functions meets the claim's purpose.
    • Evidence for a Narrower Interpretation: The patent’s detailed description and figures, particularly Figure 12, explicitly depict separate pin sets for "Computer to Peripheral" data transfer and "Peripheral to Computer" data transfer, strongly suggesting physically distinct, one-way channels (’624 Patent, Fig. 12; col. 15:1-37).

VI. Other Allegations

Indirect Infringement

The complaint alleges that by providing the accused products along with "user guides and product documentation that instruct end-users, resellers, and customers to use Alcatel-Lucent products in an infringing manner," Defendant actively induces infringement by its customers (Compl. ¶30, ¶39). It also alleges contributory infringement on the basis that the products have no substantial non-infringing use (Compl. ¶30, ¶39).

Willful Infringement

The complaint alleges willful infringement based on pre-suit knowledge (Compl. ¶125-126). It states that Plaintiff sent Defendant a certified letter on May 3, 2013, that identified ten of the patents-in-suit, the accused product category, and the prior successful litigation against IBM involving the ’416 patent. The complaint alleges that Defendant did not respond to this notice before the initial complaint was filed, suggesting deliberate indifference (Compl. ¶125).

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

  • A core issue will be one of evidentiary sufficiency: The complaint makes broad allegations against an industry-standard platform without pleading specific facts of infringement. A key question for the case will be what technical evidence, if any, Plaintiff can produce to show that Defendant's specific ATCA-based products implement the precise password-based security and serial PCI data transmission architectures recited in the asserted claims.
  • A central question will be one of technological scope: Can the claims, which describe a proprietary method of serializing PCI bus communications over unidirectional channels, be construed to read on the potentially different and standardized data transport protocols (e.g., Ethernet, Serial RapidIO) used in modern ATCA systems? The answer will likely depend on claim construction and a detailed technical comparison of the patented method and the accused functionality.