Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 1 of 56
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF COLORADO
`
`
`REALTIME ADAPTIVE STREAMING LLC,
`
`
`
`
` v.
`
`Plaintiff,
`
`
`
`Case No. 18CV1345
`
`
`
`JURY TRIAL DEMANDED
`
`
`
`CHARTER COMMUNICATIONS, INC., and
`SPECTRUM MANAGEMENT HOLDING
`COMPANY, LLC F/K/A TIME WARNER
`CABLE, INC.,
`
`
`
`Defendants.
`
`
`
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`This is an action for patent infringement arising under the Patent Laws of the
`
`United States of America, 35 U.S.C. § 1 et seq. in which Plaintiff Realtime Adaptive
`
`Streaming LLC (“Plaintiff” or “Realtime”) makes the following allegations against
`
`Defendant Charter Communications, Inc. and Spectrum Management Holding Company,
`
`LLC f/k/a Time Warner Cable, Inc. (collectively, “Charter”).
`
`PARTIES
`
`1.
`
`Realtime is a Texas limited liability company. Realtime has a place of
`
`business at 1828 E.S.E. Loop 323, Tyler, Texas 75701. Realtime has researched and
`
`developed specific solutions for data compression. As recognition of its innovations
`
`rooted in this technological field, Realtime holds multiple United States patents and
`
`pending patent applications.
`
`2.
`
`On information and belief, Defendant Charter Communications, Inc. and
`
`Defendant Spectrum Management Holding Company, LLC, formerly known as Time
`
`Warner Cable, Inc., are each a Delaware corporation with its principal place of business
`
`
`
`1
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`

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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 2 of 56
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`in Stamford, Connecticut. Charter has regular and established places of business in this
`
`District, including, e.g., in Denver, Colorado (e.g., “Fiddler’s Green Campus”). See, e.g.,
`
`https://jobs.spectrum.com/denver Charter offers its products and/or services, including
`
`those accused herein of infringement, to customers and potential customers located in
`
`Colorado and in this District. Charter may be served with process through its registered
`
`agent for service at Corporation Service Company, 1900 W. Littleton Boulevard,
`
`Littleton, CO 80120.
`
`JURISDICTION AND VENUE
`
`3.
`
`This action arises under the patent laws of the United States, Title 35 of
`
`the United States Code. This Court has original subject matter jurisdiction pursuant to 28
`
`U.S.C. §§ 1331 and 1338(a).
`
`4.
`
`This Court has personal jurisdiction over Defendant Charter in this action
`
`because Charter has committed acts within the District of Colorado giving rise to this
`
`action and has established minimum contacts with this forum such that the exercise of
`
`jurisdiction over Charter would not offend traditional notions of fair play and substantial
`
`justice. Defendant Charter has committed and continues to commit acts of infringement
`
`in this District by, among other things, offering to sell and selling products and/or
`
`services that infringe the asserted patents.
`
`5.
`
`Venue is proper in this district, e.g., under 28 U.S.C. § 1400(b). Charter is
`
`registered to do business in Colorado, and upon information and belief, Charter has
`
`transacted business in the District of Colorado and has committed acts of direct and
`
`indirect infringement in the District of Colorado. Charter has regular and established
`
`place(s) of business in this District, as set forth above.
`
`
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`2
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`

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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 3 of 56
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`
`
` THE PATENTS-IN-SUIT
`
`6.
`
`This action arises under 35 U.S.C. § 271 for Charter’s infringement of
`
`Realtime’s United States Patent Nos. 7,386,046 (the “’046 patent”), 8,934,535 (the
`
`“’535 patent”), and 9,769,477 (the “’477 patent”) (the “Patents-In-Suit”).
`
`7.
`
`The '046 patent, titled “Bandwidth Sensitive Data Compression and
`
`Decompression,” was duly and properly issued by the United States Patent and
`
`Trademark Office (“USPTO”) on June 10, 2008. A copy of the ’046 patent is attached
`
`hereto as Exhibit A. Realtime is the owner and assignee of the ’046 patent and holds the
`
`right to sue for and recover all damages for infringement thereof, including past
`
`infringement.
`
`8.
`
`The ’535 patent, titled “Systems and methods for video and audio data
`
`storage and distribution,” was duly and properly issued by the USPTO on January 13,
`
`2015. A copy of the ’535 patent is attached hereto as Exhibit B. Realtime is the owner
`
`and assignee of the ’535 patent and holds the right to sue for and recover all damages for
`
`infringement thereof, including past infringement.
`
`9.
`
`The ’477 patent, titled “Video data compression systems,” was duly and
`
`properly issued by the USPTO on September 19, 2017. A copy of the ’477 patent is
`
`attached hereto as Exhibit C. Realtime is the owner and assignee of the ’477 patent and
`
`holds the right to sue for and recover all damages for infringement thereof, including
`
`past infringement.
`
`COUNT I
`
`INFRINGEMENT OF U.S. PATENT NO. 7,386,046
`
`
`
`3
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`

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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 4 of 56
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`10.
`
`Plaintiff
`
`re-alleges and
`
`incorporates by
`
`reference
`
`the
`
`foregoing
`
`paragraphs, as if fully set forth herein.
`
`11.
`
`On information and belief, Charter has made, used, offered for sale, sold
`
`and/or imported into the United States Charter products that infringe the ‘046 patent, and
`
`continues to do so. By way of illustrative example, these infringing products include,
`
`without limitation, Charter’s video broadcasting services/products e.g., Spectrum TV,
`
`Spectrum TV App, Spectrum TV Select, and all versions and variations thereof since the
`
`issuance of the ‘046 patent (“Accused Instrumentalities”).
`
`12.
`
`On information and belief, Charter has directly infringed and continues to
`
`infringe the ‘046 patent, for example, through its sale, offer for sale, importation, use
`
`and testing of the Accused Instrumentalities, which practices the system claimed by
`
`Claim 40 of the ‘046 patent, namely, a system, comprising: a data compression system
`
`for compressing and decompressing data input; a plurality of compression routines
`
`selectively utilized by the data compression system, wherein a first one of the plurality
`
`of compression routines includes a first compression algorithm and a second one of the
`
`plurality of compression routines includes a second compression algorithm; and a
`
`controller for tracking throughput and generating a control signal to select a compression
`
`routine based on the throughput, wherein said tracking throughput comprises tracking a
`
`number of pending access requests to a storage device; and wherein when the controller
`
`determines that the throughput falls below a predetermined throughput threshold, the
`
`controller commands the data compression engine to use one of the plurality of
`
`compression routines to provide a faster rate of compression so as to increase the
`
`throughput. Upon information and belief, Charter uses the Accused Instrumentalities to
`
`
`
`4
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`

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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 5 of 56
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`practice infringing methods for its own internal non-testing business purposes, while
`
`testing the Accused Instrumentalities, and while providing technical support and repair
`
`services for the Accused Instrumentalities to Charter’s customers.
`
`13.
`
`The Accused Instrumentalities use H.264 video compression standard to
`
`deliver HD video broadcasting products/services to its customers. For example, Charter
`
`provides a list of high-definition receivers that implement H.264 decoders supporting
`
`various H.264 encoding profiles with maximum level 4.0 (“MPEG-4 (H.264) up to
`
`HP@L4.0”). Profiles define encoding/decoding methods available in the H.264 standard.
`
`While profiles define algorithmic complexities of the encoder/decoder and their
`
`processing power needs, levels specify the maximum picture resolution, frame rate, and
`
`bit rate that H.264 compatible encoders or decoders may use.
`
`See e.g., Cisco Explorer 4640HDC and 4650HDC High-Definition Set-Tops with Multi-
`
`Stream CableCARD Interface at 3.
`
`
`
`
`
`5
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 6 of 56
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`
`
`See https://www.spectrum.net/support/tv/digital-receiver-cable-box/.
`
`Moreover, H.264 video compression standard utilizes Scalable Video Coding
`
`technology. See, e.g., Recommendations ITU-T H.264 (03/2010) Annex G (Scalable
`
`video coding), p. 387-599.
`
`
`
`6
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`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 7 of 56
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`https://en.wikipedia.org/wiki/Scalable_Video_Coding
`
`
`
`
`
`7
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`

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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 8 of 56
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`Scalable Video Coding (SVCJ is the name for the Annex G extension of the H 254rli-‘r’Eo-4 AVG video compression standard. SVC standardizes the
`encoding of a high-quality video bitstream that also contains one or more subset bitstreams. A subset video bitstream is derived by dropping packets from the
`larger video to reduce the bandwidth redUired for the subset bitstream. The subset bitstream can represent a lower spatial resolution [smaller screen), lower
`temporal resolution [lower frame rate). or lower quality video signal. H.2S4fMPEG-4 AVC was developed jointly by
`and
`r
`. These two
`groups created the deint Video Team (.NTJ to develop the H.264IMF'EG-4 AVC standard.
`
`Contents [
`
`]
`
`Storage
`
`i
`Overview t
`The objective of the SVC standardization has been to enable the encoding of a high-quality Video bitstream that contains one or more subset bitstreams that
`can themselves be decoded With a complexity and reconstruction quality similar to that achieved using the existing H.264rMPEG-4 AVG design Wilh the same
`quantity of data as In the subset bitstream. The subset bitslream Is derived by dropping packets from the larger bitstream.
`A subset bitstream can represent a lower spatial resolution [smaller screen), or a lower temporal resolution (lower frame rate). or a lower quality video Signal
`(each separately or in combination) compared to the oitstream it is derived from. The following modalities are possible:
`Temporal [frame rate} scalability. the motion compensation dependencies are structured so that complete pictures (re. their associated packets} can be
`dropped from the bitslream. (Temporal scalability is already enabled by H.264rMPEG-4 AVG. SVC has only provided supplemental enhancement
`information to improve its usage.)
`Spatial (picture size) scalability: video is coded at multiple spatial resolutions. The data and decoded samples of lower resolutions can be used to predict
`data or samples of higher resolutions in order to reduce the bit rate to code the higher resolutions.
`SNFtrOualilyrFidelity scalability; video is coded at a Single spatial resolution but at different qualities. The data and decoded samples of lower qualities can
`be used to predict data or samples of higher qualities in order to reduce the bit rate to code the higher qualities.
`Combined scalability: a combination or the 3 scalability modalities described above.
`SVC enables
`for older hardware: the same bitstream can be consumed by basic hardware which can only decode a low-resolution subset
`fie.
`or
`), While more advanced hardware will be able decode high quality video stream (
`).
`
`i
`Background and applications t
`Bil-stream scalability for Video is a desirable feature for many multimedia applications. The need for scalability arises from graceful degradation transmission
`requirements. or adaptation needs for spatial formats. bit rates or power. To fulfill these requirements, it is beneficial that Video is simultaneously transmitted or
`stored with a variety of spatial or temporal resolutions or qualities which is the purpose of video bit-stream scalability.
`Traditional digital video transmission and storage systems are based on
`I
`systems for broadcasting services over satellite. cable. and
`terrestrial transmissmn channels. and for DVD storage. or on
`for conversational video conferencing services. These channels are typically characterized
`by a fixed spatiOvtemporal format or the video signal (
`or
`or
`for H.320 Video telephone}. The application behavior in such systems typically falls
`into one of the two categories: il works or it doesn't work.
`A,
`for real-time services [conversational
`Modern video transmission and storage systems using the Internet and mobile networks are typically based on l'lTPr
`and streaming) and on computer file formats like
`or
`. Most RTPrIP access networks are typically characterized by a wide range of connection qualities
`and receiving devices. The varying connection quality results from adaptive resource sharing mechanisms of these networks addressing the time varying data
`throughput requirements of a varying number of users. The variety of devices Wllh different capabilities ranging from cell phones With small screens and
`restricted processing power to high-end PCs With high-definition displays results from the continuous evolution of these endpomts.
`Scalable video coding (SVC) is one solution to the problems posed by the characteristics of modern video transmission systems. The followmg video
`applications can benefit from SVC.
`Streaming
`Conferencing
`Surveillance
`Broadcast
`
`
`
`
`
`
`
`8
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`

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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 9 of 56
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`
`
`14.
`
`The Accused Instrumentalities include a data compression system for
`
`compressing and decompressing data input. For example, Charter’s HD video
`
`broadcasting products/services utilizes H.264 compression standard. For example,
`
`Charter provides a list of high-definition receivers that implement H.264 decoders
`
`supporting various H.264 encoding profiles with maximum level 4.0 (“MPEG-4 (H.264)
`
`up to HP@L4.0”). See https://www.spectrum.net/support/tv/digital-receiver-cable-box/.
`
`See e.g., Cisco Explorer 4640HDC and 4650HDC High-Definition Set-Tops with Multi-
`
`Stream CableCARD Interface at 3.
`
`
`
`
`
`9
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 10 of 56
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`
`
`See e.g., https://www.spectrum.net/support/tv/digital-receiver-cable-box/.
`
`15.
`
`The Accused Instrumentalities include a plurality of compression routines
`
`selectively utilized by the data compression system, wherein a first one of the plurality of
`
`compression routines includes a first compression algorithm and a second one of the
`
`plurality of compression routines includes a second compression algorithm. For example,
`
`the Accused Instrumentalities utilize H.264, which include, e.g., Context-Adaptive
`
`Variable Length Coding (“CAVLC”) entropy encoder and Context-Adaptive Binary
`
`
`
`10
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 11 of 56
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`Arithmetic Coding (“CABAC”) entropy encoder. H.264 provides for multiple different
`
`ranges of parameters (e.g., bitrate, resolution parameters, etc.), each included in the
`
`“profiles”
`
`and
`
`“levels”
`
`defined
`
`by
`
`the H.264
`
`standard.
`
`
`
`See
`
`http://www.axis.com/files/whitepaper/wp_h264_31669_en_0803_lo.pdf at 5:
`
`See https://en.wikipedia.org/wiki/H.264/MPEG-4_AVC:
`
`
`
`
`
`11
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 12 of 56
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`
`
`16.
`
`A video data block is organized by the group of pictures (GOP) structure,
`
`which is a “collection of successive pictures within a coded video stream.” See
`
`https://en.wikipedia.org/wiki/Group_of_pictures. A GOP structure can contain intra
`
`coded pictures (I picture or I frame), predictive coded pictures (P picture or P frame),
`
`bipredictive coded pictures (B picture or B frame) and direct coded pictures (D picture or
`
`D frames, or DC direct coded pictures which are used only in MPEG-1 video). See
`
`https://en.wikipedia.org/wiki/Video_compression_picture_types (for descriptions of I
`
`frames, P frames and B frames); https://en.wikipedia.org/wiki/MPEG-1#D-frames (for
`
`descriptions of D frames). Thus, at least a portion of a video data block would also make
`
`up a GOP structure and could also contain I frames, P frames, B frames and/or D frames.
`
`The GOP structure also reflects the size of a video data block, and the GOP structure can
`
`be controlled and used to fine-tune other parameters (e.g. bitrate, max video bitrate and
`
`resolution parameters) or even be considered as a parameter by itself.
`
`
`
`12
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`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 13 of 56
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`17.
`
`Based on the bitrate and/or resolution parameter identified (e.g. bitrate,
`
`max video bitrate, resolution, GOP structure or frame type within a GOP structure), a
`
`H.264-compliant system such as the Accused Instrumentalities would determine which
`
`profile (e.g., “baseline,” “extended,” “main”, or “high”) corresponds with that parameter,
`
`then select between at least two asymmetric compressors. If baseline or extended is the
`
`corresponding profile, then the system will select a Context-Adaptive Variable Length
`
`Coding (“CAVLC”) entropy encoder. If main or high is the corresponding profile, then
`
`the system will select a Context-Adaptive Binary Arithmetic Coding (“CABAC”) entropy
`
`encoder. See https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-ii/
`
`
`
`13
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 14 of 56
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` See http://web.cs.ucla.edu/classes/fall03/cs218/paper/H.264_MPEG4_Tutorial.pdf at 7:
`
`
`
`
`
`14
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 15 of 56
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`
`
`Moreover, the H.264 Standard requires a bit-flag descriptor, which is set to determine the
`
`correct decoder for the corresponding encoder. As shown below, if the flag = 0, then
`
`CAVLC must have been selected as the encoder; if the flag = 1, then CABAC must have
`
`been selected as the encoder. See https://www.itu.int/rec/dologin_pub.asp?lang=e&id=T-
`
`REC-H.264-201304-S!!PDF-E&type=items (Rec. ITU-T H.264 (04/2013)) at 80:
`
`18.
`
`After its selection, the asymmetric compressor (CAVLC or CABAC) will
`
`compress the video data to provide various compressed data blocks, which can be
`
`organized
`
`in
`
`a
`
`GOP
`
`structure
`
`(see
`
`above).
`
`
`
`See
`
`https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-ii/:
`
`
`
`
`
`15
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 16 of 56
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`See
`
`http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.602.1581&rep=rep1&type=pdf
`
`at 13:
`
`
`
`See http://www.ijera.com/papers/Vol3_issue4/BM34399403.pdf at 2:
`
`
`
`
`
`16
`
`

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`
`
`19.
`
` The Accused Instrumentalities includes a controller for tracking
`
`throughput and generating a control signal to select a compression routine based on the
`
`throughput, wherein said tracking throughput comprises tracking a number of pending
`
`access requests to a storage device, and a controller where, when the controller
`
`determines that the throughput falls below a predetermined throughput threshold, the
`
`controller commands the data compression engine to use one of the plurality of
`
`
`
`17
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 18 of 56
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`compression routines to provide a faster rate of compression so as to increase the
`
`throughput. For example, the Accused Instrumentalities supports the H.264 standard that
`
`utilizes Scalable Video Coding, which enables the functionalities of adaptation for
`
`channel bandwidth. The controller in the Accused Instrumentalities decides which
`
`compression (e.g., CABAC, CAVLC, etc.) to use at a point in time based on parameters,
`
`for example, e.g., current or anticipated throughput. For example, when a low bandwidth
`
`is present, the Accused Instrumentalities select lower quality stream using a particular
`
`compression technique. As another example, when a high bandwidth is present, the
`
`Accused Instrumentalities select higher quality stream using another particular
`
`compression technique. For example, the Accused Instrumentalities’ use of HTTP Live
`
`Streaming is directed to this selection. As another example, the Accused Instrumentalities’
`
`use of different “Profiles” of H.264 is directed to selecting lower quality stream using a
`
`particular compression technique (e.g., CABAC or CAVLC, etc.) for lower anticipated
`
`bandwidth situations, and selecting higher quality stream using a higher compression
`
`technique (e.g., CABAC or CAVLC, etc.) for higher anticipated bandwidth situations.
`
`20.
`
`On information and belief, Charter also directly infringes and continues to
`
`infringe other claims of the ‘046 patent.
`
`21.
`
`On information and belief, all of the Accused Instrumentalities perform
`
`the claimed methods in substantially the same way, e.g., in the manner specified in the
`
`H.264 standard.
`
`22.
`
`On information and belief, use of the Accused Instrumentalities in their
`
`ordinary and customary fashion results in infringement of the methods claimed by the
`
`‘046 patent.
`
`
`
`18
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`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 19 of 56
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`23.
`
`On information and belief, Charter has had knowledge of the ‘046 patent
`
`since at least the filing of this Complaint or shortly thereafter, and on information and
`
`belief, Charter knew of the ‘046 patent and knew of its infringement, including by way of
`
`this lawsuit. By the time of trial, Charter will have known and intended (since receiving
`
`such notice) that its continued actions would actively induce and contribute to the
`
`infringement of the claims of the ‘046 patent.
`
`24.
`
`Upon information and belief, Charter’s affirmative acts of making, using,
`
`and selling the Accused Instrumentalities, and providing implementation services and
`
`technical support to users of the Accused Instrumentalities, including, e.g., through
`
`training, demonstrations, brochures, installation and user guides, have induced and
`
`continue to induce users of the Accused Instrumentalities to use them in their normal and
`
`customary way to infringe the ‘046 patent. For example, Charter adopted H.264 as its
`
`video codec in its HD video broadcasting products/services. For example, Charter
`
`provides a list of high-definition receivers that implement H.264 decoders supporting
`
`various H.264 encoding profiles with maximum level 4.0 (“MPEG-4 (H.264) up to
`
`HP@L4.0”). See https://www.spectrum.net/support/tv/digital-receiver-cable-box/.
`
`See Cisco Explorer 4640HDC and 4650HDC High-Definition Set-Tops with Multi-
`
`Stream CableCARD Interface at 3.
`
`
`
`
`
`19
`
`

`

`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 20 of 56
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`
`
`See
`
`https://www.spectrum.net/support/tv/digital-receiver-cable-box/.
`
`For
`
`similar
`
`reasons, Charter also induces its customers to use the Accused Instrumentalities to
`
`infringe other claims of the ‘046 patent. Charter specifically intended and was aware
`
`that these normal and customary activities would infringe the ‘046 patent. Charter
`
`performed the acts that constitute induced infringement, and would induce actual
`
`infringement, with the knowledge of the ‘046 patent and with the knowledge, or willful
`
`blindness to the probability, that the induced acts would constitute infringement. For
`
`
`
`20
`
`

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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 21 of 56
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`example, since filing of this action, Charter knows that the ordinary way of using
`
`Scalable Video Coding method of the H.264 standard —which is directed to choosing
`
`different compression techniques based on current or anticipated throughput—in the
`
`Accused Instrumentalities infringes the patent but nevertheless continues to promote
`
`H.264 compression standard that utilizes Scalable Video Coding method of the H.264
`
`standard to its customers. The only reasonable inference is that Charter specifically
`
`intends the users to infringe the patent. On information and belief, Charter engaged in
`
`such inducement to promote the sales of the Accused Instrumentalities. Accordingly,
`
`Charter has induced and continue to induce users of the Accused Instrumentalities to use
`
`the Accused Instrumentalities in their ordinary and customary way to infringe the ‘046
`
`patent, knowing that such use constitutes infringement of the ‘046 patent. Accordingly,
`
`Charter has been (as of filing of the original complaint), and currently is, inducing
`
`infringement of the ‘046 patent, in violation of 35 U.S.C. § 271(b).
`
`25.
`
`Charter has also infringed, and continues to infringe, claims of the ‘046
`
`patent by offering to commercially distribute, commercially distributing, making, and/or
`
`importing the Accused Instrumentalities, which are used in practicing the process, or
`
`using the systems, of the ‘046 patent, and constitute a material part of the invention.
`
`Charter knows the components in the Accused Instrumentalities to be especially made or
`
`especially adapted for use in infringement of the ‘046 patent, not a staple article, and not
`
`a commodity of commerce suitable for substantial noninfringing use. For example, the
`
`ordinary way of using Scalable Video Coding method of the H.264 standard—which is
`
`directed to choosing different compression techniques based on current or anticipated
`
`throughput—infringes the patent, and as such, is especially adapted for use in
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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 22 of 56
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`infringement. Moreover, there is no substantial noninfringing use, as Scalable Video
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`Coding method of the H.264 standard is directed to choosing different compression
`
`techniques based on current or anticipated throughput. Accordingly, Charter has been (as
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`of filing of the original complaint), and currently is, contributorily infringing the ’477
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`patent, in violation of 35 U.S.C. § 271(c).
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`26.
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`By making, using, offering for sale, selling and/or importing into the
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`United States the Accused Instrumentalities, and touting the benefits of using the
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`Accused Instrumentalities’ compression features, Charter has injured Realtime and is
`
`liable to Realtime for infringement of the ‘046 patent pursuant to 35 U.S.C. § 271.
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`27.
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`As a result of Charter’s infringement of the ‘046 patent, Plaintiff Realtime
`
`is entitled to monetary damages in an amount adequate to compensate for Charter’s
`
`infringement, but in no event less than a reasonable royalty for the use made of the
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`invention by Charter, together with interest and costs as fixed by the Court.
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`
`
`COUNT II
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`INFRINGEMENT OF U.S. PATENT NO. 8,934,535
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`28.
`
`Plaintiff
`
`re-alleges and
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`incorporates by
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`reference
`
`the
`
`foregoing
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`paragraphs, as if fully set forth herein.
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`29.
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`On information and belief, Charter has made, used, offered for sale, sold
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`and/or imported into the United States Charter products that infringe the ‘535 patent, and
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`continues to do so. By way of illustrative example, these infringing products include,
`
`without limitation, Charter’s video broadcasting services/products e.g., Spectrum TV,
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`Spectrum TV App, Spectrum TV Select, and all versions and variations thereof since the
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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 23 of 56
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`issuance of the ‘535 patent (“Accused Instrumentalities”).
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`30.
`
`On information and belief, Charter has directly infringed and continues to
`
`infringe the ‘535 patent, for example, through its own use and testing of the Accused
`
`Instrumentalities, which when used, practices the method claimed by Claim 15 of the
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`‘535 patent, namely, a method, comprising: determining a parameter of at least a portion
`
`of a data block; selecting one or more asymmetric compressors from among a plurality of
`
`compressors based upon the determined parameter or attribute; compressing the at least
`
`the portion of the data block with the selected one or more asymmetric compressors to
`
`provide one or more compressed data blocks; and storing at least a portion of the one or
`
`more compressed data blocks. Upon information and belief, Charter uses the Accused
`
`Instrumentalities to practice infringing methods for its own internal non-testing business
`
`purposes, while testing the Accused Instrumentalities, and while providing technical
`
`support and repair services for the Accused Instrumentalities to Charter’s customers.
`
`31.
`
`The Accused Instrumentalities use H.264 video compression standard to
`
`deliver HD video broadcasting products/services to its customers. For example, Charter
`
`provides a list of high-definition receivers that implement H.264 decoders supporting
`
`various H.264 encoding profiles with maximum level 4.0 (“MPEG-4 (H.264) up to
`
`HP@L4.0”). Profiles define encoding/decoding methods available in the H.264 standard.
`
`While profiles define algorithmic complexities of the encoder/decoder and their
`
`processing power needs, levels specify the maximum picture resolution, frame rate, and
`
`bit rate that H.264 compatible encoders or decoders may use.
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`
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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 24 of 56
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`See e.g., Cisco Explorer 4640HDC and 4650HDC High-Definition Set-Tops with Multi-
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`Stream CableCARD Interface at 3.
`
`
`
`See e.g., https://www.spectrum.net/support/tv/digital-receiver-cable-box/.
`
`Moreover, H.264 video compression standard utilizes Scalable Video Coding
`
`technology. See, e.g., Recommendations ITU-T H.264 (03/2010) Annex G (Scalable
`
`video coding), p. 387-599.
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`
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`24
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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 25 of 56
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`https://en.wikipedia.org/wiki/Scalable_Video_Coding
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`Case 1:18-cv-01345-KLM Document 1 Filed 06/01/18 USDC Colorado Page 26 of 56
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`Scalable Video Coding (SVCJ is the name for the Annex G extension of the H 254rli-‘r’Eo-4 AVG video compression standard. SVC standardizes the
`encoding of a high-quality video bitstream that also contains one or more subset bitstreams. A subset video bitstream is derived by dropping packets from the
`larger video to reduce the bandwidth redUired for the subset bitstream. The subset bitstream can represent a lower spatial resolution [smaller screen), lower
`temporal resolution [lower frame rate). or lower quality video signal. H.2S4fMPEG-4 AVC was developed jointly by
`and
`r
`. These two
`groups created the deint Video Team (.NTJ to develop the H.264IMF'EG-4 AVC standard.
`
`Contents [
`
`]
`
`Storage
`
`i
`Overview t
`The objective of the SVC standardization has been to enable the encoding of a high-quality Video bitstream that contains one or more subset bitstreams that
`can themselves be decoded With a complexity and reconstruction quality similar to that achieved using the existing H.264rMPEG-4 AVG design Wilh the same
`quantity of data as In the subset bitstream. The subset bitslream Is derived by dropping packets from the larger bitstream.
`A subset bitstream can represent a lower spatial resolution [smaller screen), or a lower temporal resolution (lower frame rate). or a lower quality video Signal
`(each separately or in combination) compared to the oitstream it is derived from. The following modalities are possible:
`Temporal [frame rate} scalability. the motion compensation dependencies are structured so that complete pictures (re. their associated packets} can be
`dropped from the bitslream. (Temporal scalability is already enabled by H.264rMPEG-4 AVG. SVC has only provided supplemental enhancement
`information to improve its usage.)
`Spatial (picture size) scalability: video is coded at multiple spatial resolutions. The data and decoded samples of lower resolutions can be used to predict
`data or samples of higher resolutions in order to reduce the bit rate to code the higher resolutions.
`SNFtrOualilyrFidelity scalability; video is coded at a Single spatial resolution but at different qualities. The data and decoded samples of lower qualities can
`be used to predict data or samples of higher qualities in order to reduce the bit rate to code the higher qualities.
`Combined scalability: a combination or the 3 scalability modalities described above.
`SVC enables
`for older hardware: the same bitstream can be consumed by basic hardware which can only decode a low-resolution subset
`fie.
`or
`), While more advanced hardware will be able decode high quality video stream (
`).
`
`i
`Background and applications t
`Bil-stream scalability for Video is a desirable feature for many multimedia applications. The need for scalability arises from graceful degradation transmission
`requirements. or adaptation needs for spatial