DCT

4:05-cv-01416

Absolute Software Inc v. Stealth Signal Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 2:04-cv-02175, W.D. Wash., 10/21/2004
  • Venue Allegations: Plaintiff alleges venue is proper because Defendants are subject to personal jurisdiction in the district and have committed acts of infringement there.
  • Core Dispute: Plaintiff alleges that Defendants' "Xtool" computer tracking and recovery products and services infringe six U.S. patents related to computer security and remote monitoring technology.
  • Technical Context: The technology at issue involves software agents that secretly report a computer's location and identity to a remote server, a method designed to enable the recovery of lost or stolen electronic devices.
  • Key Procedural History: The complaint does not allege any significant prior litigation, licensing history, or other procedural events relevant to the current dispute.

Case Timeline

Date Event
1994-11-15 Priority Date for all asserted patents
1998-02-03 U.S. Patent No. 5,715,174 Issued
1998-06-09 U.S. Patent No. 5,764,892 Issued
2001-06-12 U.S. Patent No. 6,244,758 Issued
2001-07-31 U.S. Patent No. 6,269,392 Issued
2001-10-09 U.S. Patent No. 6,300,863 Issued
2003-01-14 U.S. Patent No. 6,507,914 Issued
2004-10-21 Complaint Filed

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

U.S. Patent No. 6,244,758 - APPARATUS AND METHOD FOR MONITORING ELECTRONIC DEVICES VIA A GLOBAL NETWORK

  • Patent Identification: U.S. Patent No. 6,244,758, entitled "APPARATUS AND METHOD FOR MONITORING ELECTRONIC DEVICES VIA A GLOBAL NETWORK," issued June 12, 2001 (Compl. ¶8).

The Invention Explained

  • Problem Addressed: The patent addresses the increased risk of theft and loss of compact, portable electronic devices like laptop computers and the inadequacy of existing recovery methods such as physical markings, password protection, or simple radio transmitters ('758 Patent, col. 1:15-51).
  • The Patented Solution: The invention is a security system featuring an "intelligent agent" secretly embedded within a device's software, firmware, or hardware. This agent operates transparently to the user and can function independently of the device's primary operating system. It is designed to periodically initiate calls to a host monitoring system over a global network, such as the Internet, to report the device's unique identifying indicia and location information. ('758 Patent, Abstract; col. 2:14-23).
  • Technical Importance: The invention's use of a global network like the Internet for communication allows the agent to report its status even while other applications may be using the device's modem, representing an advance in stealth and persistence over prior art systems limited to dedicated telephone calls ('758 Patent, col. 2:5-13).

Key Claims at a Glance

  • The complaint does not identify any specific claims of the ’758 Patent that are asserted against the Defendants.

U.S. Patent No. 6,300,863 - METHOD AND APPARATUS TO MONITOR AND LOCATE AN ELECTRONIC DEVICE USING A SECURED INTELLIGENT AGENT VIA A GLOBAL NETWORK

  • Patent Identification: U.S. Patent No. 6,300,863, entitled “METHOD AND APPARATUS TO MONITOR AND LOCATE AN ELECTRONIC DEVICE USING A SECURED INTELLIGENT AGENT VIA A GLOBAL NETWORK,” issued October 9, 2001 (Compl. ¶9).

The Invention Explained

  • Problem Addressed: The patent addresses the difficulty of tracing and recovering lost or stolen portable electronic devices, noting that conventional security measures are often easily defeated or circumvented ('863 Patent, col. 1:20-53).
  • The Patented Solution: The invention discloses a secured "intelligent agent" implanted on an electronic device to communicate with a remote host monitoring system. The agent is designed to hide within the device's software, firmware, or hardware and operate without interfering with the user's regular activities, thereby evading detection. It periodically reports the device's identity and location information over a global network. The patent also describes a method where the host system can decode identifying information from a series of phone numbers dialed by the agent. ('863 Patent, Abstract; FIG. 15).
  • Technical Importance: This technology provides a security system that is "well cloaked and thus it cannot be readily located or disabled," even if a thief suspects its existence, which may improve the probability of asset recovery ('863 Patent, col. 2:40-44).

Key Claims at a Glance

  • The complaint does not identify any specific claims of the ’863 Patent that are asserted against the Defendants.

U.S. Patent No. 6,507,914 - COMPUTER SECURITY MONITORING APPARATUS AND SYSTEM

  • Patent Identification: U.S. Patent No. 6,507,914, entitled "COMPUTER SECURITY MONITORING APPARATUS AND SYSTEM," issued January 14, 2003 (Compl. ¶10).
  • Technology Synopsis: This patent describes a computer security system and method where a security agent is loaded into a computer's memory before the primary operating system. This allows the agent to operate transparently and resist disablement by a user or unauthorized party. (Compl. ¶10; ’914 Patent, Abstract).
  • Asserted Claims: The complaint does not identify specific asserted claims.
  • Accused Features: The complaint makes a general allegation that Defendants' "Xtool" products and services infringe the patent (Compl. ¶¶15, 20).

U.S. Patent No. 5,715,174 - SECURITY APPARATUS AND METHOD

  • Patent Identification: U.S. Patent No. 5,715,174, entitled "SECURITY APPARATUS AND METHOD," issued February 3, 1998 (Compl. ¶11).
  • Technology Synopsis: This patent, which shares a priority date with the other patents-in-suit, discloses a security method where software is programmed onto a memory device in a location not normally accessible to the computer's operating system, such as a disk's boot sector. This software periodically and stealthily sends signals, including identifying indicia, to a remote station via a telecommunications interface to enable tracking. (Compl. ¶11; ’174 Patent, Abstract).
  • Asserted Claims: The complaint does not identify specific asserted claims.
  • Accused Features: The complaint makes a general allegation that Defendants' "Xtool" products and services infringe the patent (Compl. ¶¶15, 20).

U.S. Patent No. 5,764,892 - SECURITY APPARATUS AND METHOD

  • Patent Identification: U.S. Patent No. 5,764,892, entitled "SECURITY APPARATUS AND METHOD," issued June 9, 1998 (Compl. ¶12).
  • Technology Synopsis: This patent discloses a system for locating and monitoring electronic devices using a security agent embedded in the device. The agent is designed to be transparent to the user, periodically call a host system to report its identity and location, and actively resist attempts by an unauthorized user to disable it. (Compl. ¶12; ’892 Patent, Abstract).
  • Asserted Claims: The complaint does not identify specific asserted claims.
  • Accused Features: The complaint makes a general allegation that Defendants' "Xtool" products and services infringe the patent (Compl. ¶¶15, 20).

U.S. Patent No. 6,269,392 - METHOD AND APPARATUS TO MONITOR AND LOCATE AN ELECTRONIC DEVICE USING A SECURED INTELLIGENT AGENT

  • Patent Identification: U.S. Patent No. 6,269,392, entitled “METHOD AND APPARATUS TO MONITOR AND LOCATE AN ELECTRONIC DEVICE USING A SECURED INTELLIGENT AGENT,” issued July 31, 2001 (Compl. ¶13).
  • Technology Synopsis: This patent describes a secured intelligent agent for monitoring and locating an electronic device. The technology focuses on the agent's ability to be embedded in a device's firmware, such as the ROM BIOS or a modem component, allowing it to operate independently of the main operating system and evade detection. (Compl. ¶13; ’392 Patent, Abstract).
  • Asserted Claims: The complaint does not identify specific asserted claims.
  • Accused Features: The complaint makes a general allegation that Defendants' "Xtool" products and services infringe the patent (Compl. ¶¶15, 20).

III. The Accused Instrumentality

  • Product Identification: The accused instrumentalities are Defendants' "products and services," identified by the example "Xtool" (Compl. ¶¶15, 20).
  • Functionality and Market Context: The complaint provides minimal technical detail regarding the accused "Xtool" instrumentality. It describes Defendant Stealth Signal as a "provider of tracking and data protection solutions" and Defendant Computer Security Products as a "provider of computer monitoring and recovery assistance services" that offers Stealth's products for sale (Compl. ¶¶5, 6, 19, 23). The complaint does not contain specific allegations describing how the "Xtool" product or service technically operates. As the complaint does not assert specific patent claims or provide detailed infringement allegations, a comparative analysis is not possible from the pleading.
  • Evidence: No probative visual evidence provided in complaint.

IV. Other Allegations

  • Indirect Infringement: The complaint alleges that both Defendants have infringed by "actively inducing others to make, have made, use, sell and/or offer for sale" the accused products and by "contributing to the infringement of the Infringed Patents by others" (Compl. ¶¶16, 17, 23, 24). The complaint does not plead specific underlying facts to support the elements of knowledge and intent required for these claims.
  • Willful Infringement: The complaint asserts that both Defendants have "actual knowledge of the Infringed Patents" and that their infringement "has been and continues to be willful and deliberate" (Compl. ¶¶18, 19, 25, 26). The complaint does not specify the basis for this alleged knowledge, such as whether it arises from pre-suit notice or other circumstances.

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

Given the general nature of the complaint, which was filed under earlier federal pleading standards, the initial phase of litigation will likely focus on establishing the specific contours of the dispute. The central questions raised by the pleading are:

  • A threshold procedural question will be one of specificity: which of the hundreds of claims across the six asserted patents are at issue, and what specific features of the "Xtool" product are alleged to infringe those claims? The complaint's general allegations leave these fundamental questions for discovery and subsequent filings, such as infringement contentions.
  • A core evidentiary question will be one of technical correspondence: what is the specific architecture and method of operation of the accused "Xtool" product, and does it align with the patented methods of, for example, pre-boot software loading, stealthy communication over global networks, or resistance to disablement as claimed in the patents-in-suit?