Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 1 of 103
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF MASSACHUSETTS
`
`REALTIME ADAPTIVE STREAMING LLC,
`
`
`
`
`
`
`
`
`Plaintiff,
`
`v.
`
`
`
`ADOBE SYSTEMS INC.,
`
`
`
`Case No. ___________________
`
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`Defendant.
`
`
`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 Adobe
`
`Systems Inc. (“Defendant” or “Adobe”).
`
`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.
`
`2.
`
`On information and belief, Defendant Adobe Systems Inc. is a Delaware
`
`corporation with its principal place of business at 345 Park Ave, San Jose, California 95110.
`
`3.
`
`Defendant Adobe Systems Inc. has regular and established places of
`
`business in this District, specifically at least at One Newton Place, Newton, MA 02458 and
`
`One Broadway, Cambridge, MA 02142. Defendant Adobe Systems Inc. offers their
`
`products and/or services, including those accused herein of infringement, to customers and
`
`potential customers located in Massachusetts and in this District.
`
`4.
`
`Defendant Adobe Systems Inc. may be served with process through its
`
`registered agent for service c/o Corporation Service Company at 84 State Street, Boston,
`
`
`
`1
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF MASSACHUSETTS
`
`REALTIME ADAPTIVE STREAMING LLC,
`
`
`
`
`
`
`
`
`Plaintiff,
`
`v.
`
`
`
`ADOBE SYSTEMS INC.,
`
`
`
`Case No. ___________________
`
`JURY TRIAL DEMANDED
`
`
`
`
`
`
`Defendant.
`
`
`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 Adobe
`
`Systems Inc. (“Defendant” or “Adobe”).
`
`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.
`
`2.
`
`On information and belief, Defendant Adobe Systems Inc. is a Delaware
`
`corporation with its principal place of business at 345 Park Ave, San Jose, California 95110.
`
`3.
`
`Defendant Adobe Systems Inc. has regular and established places of
`
`business in this District, specifically at least at One Newton Place, Newton, MA 02458 and
`
`One Broadway, Cambridge, MA 02142. Defendant Adobe Systems Inc. offers their
`
`products and/or services, including those accused herein of infringement, to customers and
`
`potential customers located in Massachusetts and in this District.
`
`4.
`
`Defendant Adobe Systems Inc. may be served with process through its
`
`registered agent for service c/o Corporation Service Company at 84 State Street, Boston,
`
`
`
`1
`
`
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 2 of 103
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`MA 02109.
`
`JURISDICTION AND VENUE
`
`5.
`
`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).
`
`6.
`
`This Court has personal jurisdiction over Defendant in this action because
`
`Defendant has committed acts within the District of Massachusetts giving rise to this action
`
`and has established minimum contacts with this forum such that the exercise of jurisdiction
`
`over Defendant would not offend traditional notions of fair play and substantial justice.
`
`The Defendant has also 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.
`
`7.
`
`Venue is proper in this district, e.g., under 28 U.S.C. § 1400(b). Defendant
`
`has a regular and established place of business in this District, for example at One Newton
`
`Place, Newton, MA 02458 and One Broadway, Cambridge, MA 02142. Furthermore, upon
`
`information and belief, Defendant has transacted business in the District of Massachusetts
`
`and has committed acts of direct and indirect infringement in the District of Massachusetts.
`
` THE PATENTS-IN-SUIT
`
`8.
`
`This action arises under 35 U.S.C. § 271 for Adobe’s infringement of
`
`Realtime’s United States Patent Nos. 7,386,046 (the “’046 patent”), 8,634,462 (the “’462
`
`patent”), 8,929,442 (the “’442 patent”), 8,934,535 (the “’535 patent”), 9,578,298 (the
`
`“’298 patent”), 9,762,907 (the “’907 patent”), and 9,769,477 (the “’477 patent”)
`
`(collectively, the “Patents-In-Suit”).
`
`
`
`2
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 3 of 103
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`9.
`
`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.
`
`10.
`
`The ’462 patent, titled “Quantization for Hybrid Video Coding,” was duly
`
`and properly issued by the USPTO on January 21, 2014. A copy of the ’462 patent is
`
`attached hereto as Exhibit B. Realtime is the owner and assignee of the ’462 patent and
`
`holds the right to sue for and recover all damages for infringement thereof, including past
`
`infringement.
`
`11.
`
`The ’442 patent, titled “System and method for video and audio data
`
`distribution,” was duly and legally issued by the USPTO on January 6, 2015. A true and
`
`correct copy of the ’442 patent is included as Exhibit C. Realtime is the owner and
`
`assignee of the ’442 patent and holds the right to sue for and recover all damages for
`
`infringement thereof, including past infringement.
`
`12.
`
`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 D. 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.
`
`13.
`
`The ’298 patent, titled “Method for Decoding 2D-Compatible Stereoscopic
`
`Video Flows,” was duly and properly issued by the USPTO on February 21, 2017. A copy
`
`of the ’298 patent is attached hereto as Exhibit E. Realtime is the owner and assignee of
`
`
`
`3
`
`
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 4 of 103
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`the ’298 patent and holds the right to sue for and recover all damages for infringement
`
`thereof, including past infringement.
`
`14.
`
`The ’907 patent, titled “System and Methods for Video and Audio Data
`
`Distribution,” was duly and properly issued by the USPTO on September 12, 2017. A
`
`copy of the ’907 patent is attached hereto as Exhibit F. Realtime is the owner and assignee
`
`of the ’907 patent and holds the right to sue for and recover all damages for infringement
`
`thereof, including past infringement.
`
`15.
`
`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 G. 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
`
`16.
`
`Plaintiff re-alleges and incorporates by reference the foregoing
`
`paragraphs, as if fully set forth herein.
`
`17.
`
`On information and belief, Adobe has made, used, offered for sale, sold
`
`and/or imported into the United States Adobe products that infringe the ‘046 patent, and
`
`continues to do so. By way of illustrative example, these infringing products include,
`
`without limitation, Adobe’s Adobe Media Encoder, Adobe Media Encoder Creative
`
`Cloud or CC, Adobe Media Encoder Creative Suite or CS (e.g. CS4, CS5, CS5.5, CS6),
`
`Adobe Premiere Pro, Adobe Premiere Pro CC, Adobe Premiere Pro CS (e.g. CS4, CS5,
`
`CS5.5, CS6), Adobe Flash, Adobe Flash Player (e.g. Adobe Flash Player 9), Adobe Flash
`
`
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`4
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 5 of 103
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`Media Server, Adobe Flash Media Encoding Server, Adobe After Effects, Adobe After
`
`Effects CC, Adobe After Effects CS (e.g. CS4, CS5, CS5.5, CS6), Adobe HTTP
`
`Dynamic Streaming (HDS), and all versions and variations thereof since the issuance of
`
`the ’046 patent (“Accused Instrumentalities”).
`
`18.
`
`On information and belief, Adobe 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, for
`
`example, 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, Adobe 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 Adobe’s customers.
`
`19.
`
`The Accused Instrumentalities include, or practice a system, comprising: a
`
`
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`5
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 6 of 103
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`data compression system for compressing and decompressing data input. For example,
`
`the Accused Instrumentalities utilize H.264 and/or H.264 with Scalable Video Coding
`
`(SVC) and/or an equivalent codec. H.264 is “the most widely used codec on the planet.”
`
`See http://www.streamingmedia.com/Articles/Editorial/What-Is-.../What-is-H.264-
`
`74735.aspx. A “codec” is also a compression technology that has “two components, an
`
`encoder to compress the files, and a decoder to decompress. There are codecs for…video
`
`(Cinepark, MPEG-2, H.264, VP8).” See
`
`http://www.streamingmedia.com/Articles/Editorial/What-Is-.../What-is-a-Codec-
`
`74487.aspx; https://forums.adobe.com/thread/729526 (“Compression is essential for
`
`reducing the size of movies so that they can be stored, transmitted, and played back
`
`effectively. Compression is achieved by an encoder; decompression is achieved by a
`
`decoder. Encoders and decoders are known by the common term codec.”). According to
`
`a website maintained by Adobe, “you can produce H.264 video with Adobe Media
`
`Encoder CS4 and Adobe Flash Media Encoding Server 3.5,” “Adobe added H.264
`
`playback support to Adobe Flash Player 9 Update 3 back in 2007,” Adobe “Flash Media
`
`Server and Flash Player can both stream and play back any H.264 file in virtually any
`
`format,” the encoding capabilities of the Adobe Flash Media Encoding Server using
`
`“H.264-related parameters” are described (e.g. using CAVLC, CABAC) and under a
`
`headline stating “Adobe Media Encoder,” the website states: “Adobe significantly
`
`enhanced the Flash Video Encoder in Creative Suite 4. There is now both stand-alone
`
`operation and batch encoding capabilities. As before, you can access H.264 encoding by
`
`choosing different formats in the Format pop-up menu. When producing for Flash Player,
`
`you should always use the FLV|F4V option, which lets you produce both VP6- and
`
`
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`6
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`
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 7 of 103
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`H.264-encoded files for Flash Player distribution.” See
`
`http://www.adobe.com/devnet/adobe-media-server/articles/h264_encoding.html. Another
`
`website maintained by Adobe mentions that “You have two primary options for using
`
`Adobe Media Encoder with After Effects to create videos in H.264.” The website also
`
`mentions that “Since Adobe Media Encoder already has superior H.264…exporting
`
`capabilities, it was more prudent to rely on Adobe Media Encoder for export of these
`
`formats.” See https://helpx.adobe.com/after-effects/kb/export-h264.html. Another
`
`website maintained by Adobe mentions that the “Adobe Flash Player 9 Update 3 is taking
`
`a step into the high-definition (HD) video realm in a major way by adding MPEG-4
`
`video…[which] utilizes crisp, powerful H.264 encoding” and “The new Adobe Media
`
`Player…will also support H.264” and “The addition of H.264…support in Flash Player
`
`9 Update 3 allows you to easily use high-definition, industry standard video and audio.”
`
`See http://www.adobe.com/devnet/flashplayer/articles/hd_video_flash_player.html.
`
`Adobe HTTP Dynamic Streaming (HDS) also supports additional data compression
`
`systems or codecs other than H.264 because it “enables high-quality (H.264 or VP6),
`
`network-efficient HTTP streaming for media delivery that is tightly integrated with
`
`Adobe® Access software for robust content protection in the Adobe Flash® Player 10.1
`
`or later and Adobe AIR®2 or later runtimes,” is also “built on standards and deployed
`
`using standard HTTP servers (Apache), standard media format (MP4 fragment) using
`
`standard codecs (H.264/AAC), open APIs (Flash Player), and an open source framework
`
`for building media players (OSMF)” and “like other Flash Player supported delivery
`
`methods,” Adobe HDS “supports H.264 video and VP6 codecs required for the highest
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`quality video on the platform.” See https://www.adobe.com/products/hds-dynamic-
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`
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`7
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 8 of 103
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`streaming/faq.html. Adobe HDS also allows users to encode content “using high-quality
`
`Flash Player compatible codecs (VP6/MP3, H264/AAC),” deliver “high-definition video
`
`up to 1080p, with bitrates from 700kbps up to and beyond 6Mbps, using either H.264 or
`
`VP6 video codecs,” and archive “live, high-definition streams on the server and enable
`
`HD DVR functionality (for example, instant replay and time shifting) with support for
`
`H.264 stream recording for RTMP and HTTP Dynamic Streaming.” See
`
`https://www.adobe.com/products/hds-dynamic-streaming/features.html. Adobe Media
`
`Encoder also “lets you produce both VP6- and H.264-encoded files for Flash Player
`
`distribution.” See http://www.adobe.com/devnet/adobe-media-
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`server/articles/h264_encoding.html.
`
`20.
`
`The Accused Instrumentalities also include, or practice a system
`
`comprising: 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. First, based on various parameters (e.g.
`
`throughput, bitrate, max video bitrate, resolution), any H.264-compliant system such as
`
`the Accused Instrumentalities would determine which profile (e.g., “baseline,”
`
`“extended,” “main”, or “high”) corresponds with that parameter, whether if that
`
`parameter (e.g. throughput) meets some criteria, then select between at least two
`
`asymmetric compressors or plurality of compression routines, where one asymmetric
`
`compressor may serve as the first compression algorithm and another asymmetric
`
`compressor may serve as the second compression algorithm. If baseline or extended is
`
`the corresponding profile, then the system will select a Context-Adaptive Variable
`
`
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`8
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 9 of 103
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`Length Coding (“CAVLC”) entropy encoder, which may serve as the first or second
`
`compression algorithm or asymmetric compressor. If main or high is the corresponding
`
`profile, then the system will select a Context-Adaptive Binary Arithmetic Coding
`
`(“CABAC”) entropy encoder, which may serve as the first or second compression
`
`algorithm or asymmetric compressor. Both encoders are asymmetric compressors
`
`because it takes a longer period of time for them to compress data than to decompress
`
`data. See https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-ii/.
`
`21.
`
`The Accused Instrumentalities also include, or practice a system
`
`comprising: 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. For example, Adobe
`
`HTTP Dynamic Streaming (HDS) contains the “ability to shift quality depending on
`
`bandwidth and computer power. HTTP progressive delivery consumes more bandwidth
`
`because it's not intelligent enough to throttle the delivery (for example, a 30-minute video
`
`will be
`
`fully downloaded whether
`
`the user watches
`
`it or not).” See
`
`https://www.adobe.com/products/hds-dynamic-streaming/faq.html. Adobe HDS can also
`
`“[d]etect the client's bandwidth and computer resources and serve them content
`
`fragments
`
`encoded
`
`at
`
`the
`
`most
`
`appropriate
`
`bitrate.”
`
`See
`
`https://www.adobe.com/products/hds-dynamic-streaming/features.html. On information
`
`and belief, the Accused Instrumentalities also include a storage device e.g., hard disk, disks,
`
`buffers, servers or other forms of memory/storage, that would receive pending access
`
`requests so the controller could track throughput by tracking a number of pending access
`
`requests
`
`to
`
`that
`
`storage
`
`device.
`
`See
`
`https://helpx.adobe.com/adobe-media-
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`
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`9
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`
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 10 of 103
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`server/dev/configure-dynamic-streaming-live-streaming.html (describing “Streams [from
`
`Adobe HDS] in a live event are packaged as fragments and written to disk,” “The IO
`
`buffer loads the disk file into an in-memory buffer,” and “To limit the amount of storage
`
`the disk cache uses,” and a “Content storage (HDS and HLS)” header describing a section
`
`where a “media player requests content from the server.” As shown below, when the
`
`controller generates a control signal to select a compression routine based on the
`
`throughput, it is clear that the compression routines and the first and second compression
`
`algorithms all utilize various parameters to compress or decompress data input including,
`
`of course, throughput and bandwidth, but also bitrate (or max video bitrate), and resolution.
`
`Different parameters also correspond with different end applications. H.264, a data
`
`compression system, and compression routine provides for multiple different ranges of
`
`such parameters, each included in the “profiles” and “levels” as defined by the H.264
`
`standard, from the below shown paragraphs from a white paper and Wikipedia. See
`
`http://www.axis.com/files/whitepaper/wp_h264_31669_en_0803_lo.pdf at 5:
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`10
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 11 of 103
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`See https://en.wikipedia.org/wiki/H.264/MPEG-4_AVC:
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`
`
`
`
`22.
`
`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
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`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.
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`11
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 12 of 103
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`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. throughput/bandwidth, bitrate,
`
`max video bitrate and resolution parameters) or even be considered as a parameter by
`
`itself.
`
`23.
`
`The Accused Instrumentalities also practice 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. Based on the throughput, bitrate, and/or resolution parameter identified (e.g.
`
`throughput, bandwidth, bitrate, max video bitrate, resolution, GOP structure or frame
`
`type within a GOP structure), any H.264-compliant system such as the Accused
`
`Instrumentalities would determine which profile (e.g., “baseline,” “extended,” “main”, or
`
`“high”) corresponds with that parameter, whether if that parameter (e.g. throughput) falls
`
`below a predetermined throughput threshold, then select between at least two asymmetric
`
`compressors to, for example, provide a faster rate of compression so as to increase the
`
`throughput. 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. Both encoders are asymmetric
`
`compressors because it takes a longer period of time for them to compress data than to
`
`decompress data. See https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-
`
`ii/:
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`
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`12
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 13 of 103
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`
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`
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`See http://web.cs.ucla.edu/classes/fall03/cs218/paper/H.264_MPEG4_Tutorial.pdf at 7:
`
`
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`13
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 14 of 103
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`
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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:
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`24.
`
`The Accused Instrumentalities also practice wherein when the controller
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`14
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 15 of 103
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`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. For example, after its selection, the asymmetric compressor (CAVLC or
`
`CABAC) then compresses the data input to provide compressed data blocks (which can
`
`also be organized in a GOP structure) so as to increase the throughput, as discussed
`
`previously above. See https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-
`
`ii/:
`
`See
`
`http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.602.1581&rep=rep
`
`1&type=pdf at 13:
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`15
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 16 of 103
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`See http://www.ijera.com/papers/Vol3_issue4/BM34399403.pdf at 2:
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`
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`25.
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`Therefore, from at least the above, Adobe has directly infringed and
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`continues to infringe the ’046 patent, for example, through its own use and testing of the
`
`Accused Instrumentalities, which when used, practices the system claimed by, for example,
`
`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
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`
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`16
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 17 of 103
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`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, Adobe uses the Accused Instrumentalities to practice infringing methods for its
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`own internal non-testing business purposes, while testing the Accused Instrumentalities,
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`and while providing technical support and repair services for the Accused Instrumentalities
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`to their customers.
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`26.
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`On information and belief, Adobe also directly infringes and continues to
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`infringe other claims of the ’046 patent.
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`27.
`
`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
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`standard.
`
`28.
`
`On information and belief, use of the Accused Instrumentalities in their
`
`ordinary and customary fashion results in infringement of the systems and/or methods
`
`claimed by the ’046 patent.
`
`29.
`
`On information and belief, Adobe has had knowledge of the ’046 patent
`
`since at least the filing of this Complaint or shortly thereafter, and on information and belief,
`
`Adobe knew of the ’046 patent and knew of its infringement, including by way of this
`
`lawsuit. By the time of trial, Adobe will have known and intended (since receiving such
`
`notice) that its continued actions would actively induce and contribute to the infringement
`
`
`
`17
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 18 of 103
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`of the claims of the ’046 patent.
`
`30.
`
`Upon information and belief, Adobe’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 by practicing 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. For example, Adobe adopted H.264 and/or H.264 with Scalable Video Coding
`
`(SVC) and/or an equivalent codec as its video codec in its products/services, such as, e.g.,
`
`Adobe’s media encoder, Flash player, Flash media server, Flash media server encoder,
`
`special effects and video editing software. For similar reasons, Adobe also induces its
`
`customers to use the Accused Instrumentalities to infringe other claims of the ’046 patent.
`
`Adobe specifically intended and was aware that these normal and customary activities
`
`
`
`18
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`
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 19 of 103
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`would infringe the ’046 patent. Adobe 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. On information and belief, Adobe engaged in such inducement to
`
`promote the sales of the Accused Instrumentalities. Accordingly, Adobe has induced and
`
`continues 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, Adobe has been,
`
`and currently is, inducing infringement of the ’046 patent, in violation of 35 U.S.C. §
`
`271(b).
`
`31.
`
`Adobe 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. Adobe
`
`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. Accordingly, Adobe has been, and
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`currently is, contributorily infringing the ’046 patent, in violation of 35 U.S.C. § 271(c).
`
`32.
`
`By making, using, offering for sale, selling and/or importing into the United
`
`States the Accused Instrumentalities, and touting the benefits of using the Accused
`
`Instrumentalities’ compression features, Adobe has injured Realtime and is liable to
`
`Realtime for infringement of the ’046 patent pursuant to 35 U.S.C. § 271.
`
`33.
`
`As a result of Adobe’s infringement of the ’046 patent, Plaintiff Realtime is
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`
`
`19
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 20 of 103
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`entitled to monetary damages in an amount adequate to compensate for Adobe’s
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`infringement, but in no event less than a reasonable royalty for the use made of the
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`invention by Adobe, together with interest and costs as fixed by the Court.
`
`COUNT II
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`INFRINGEMENT OF U.S. PATENT NO. 8,634,462
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`34.
`
`Plaintiff re-alleges and incorporates by reference the foregoing
`
`paragraphs, as if fully set forth herein.
`
`35.
`
`On information and belief, Adobe has made, used, offered for sale, sold
`
`and/or imported into the United States products that infringe the ‘462 patent, and
`
`continues to do so. By way of illustrative example, these infringing products include,
`
`without limitation, Adobe’s Adobe Media Encoder, Adobe Media Encoder Creative
`
`Cloud or CC (e.g. CC 2015.1), Adobe Media Encoder Creative Suite or CS (e.g. CS4,
`
`CS5, CS5.5, CS6), Adobe Premiere Pro, Adobe Premiere Pro CC (e.g. CC 2015.1),
`
`Adobe Premiere Pro CS (e.g. CS4, CS5, CS5.5, CS6), Adobe After Effects, Adobe After
`
`Effects CC, Adobe After Effects CS (e.g. CS4, CS5, CS5.5, CS6), and all versions and
`
`variations thereof since the issuance of the ’462 patent (“Accused Instrumentalities”).
`
`36.
`
`On information and belief, Adobe has directly infringed and continues to
`
`infringe the ’462 patent, for example, through its sale, offer for sale, importation, use and
`
`testing of the Accused Instrumentalities, which practices the method claimed by, for
`
`example, Claim 1 of the ’462 patent, namely, a method for coding a video signal using
`
`hybrid coding, comprising: reducing temporal redundancy by block based motion
`
`compensated prediction in order to establish a prediction error signal; performing
`
`quantization on samples of the prediction error signal or on coefficients resulting from a
`
`
`
`20
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`
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`Case 1:18-cv-10355-WGY Document 1 Filed 02/23/18 Page 21 of 103
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`transformation of the prediction error signal into the frequency domain to obtain
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`quantized values, representing quantized samples or quantized coefficients respectively,
`
`wherein the prediction error signal includes a plurality of subblocks each including a
`
`plurality of quantized values; calculating a first quantization efficiency for the quantized
`
`values of at least one subblock of the plurality of subblocks; setting the quantized values
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`of the at least one subblock to all zeroes; calculating a second quantization efficiency for
`
`the at least one subblock while all of the quantized values are zeroes; selecting which of
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`the first and second quantization efficiencies is a higher efficiency; and selecting, for
`
`further proceeding, the at least one subblock with the quantized values prior to setting the
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`quantized values of the at least one subblock to all zeroes if the first quantization
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`efficiency is higher and selecting the at least one subblock with the quantized values set
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`to zero, for further proceeding, if the second quantization efficiency is higher.
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