Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 1 of 86 PageID #: 395
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TYLER DIVISION
`
`Case No. 6:17-cv-00084
`
`JURY TRIAL DEMANDED
`
`REALTIME DATA LLC d/b/a IXO,
`
`Plaintiff,
`
`v.
`
`ECHOSTAR CORPORATION,
`
`ECHOSTAR TECHNOLOGIES L.L.C.,
`
`HUGHES NETWORK SYSTEMS, LLC,
`
`DISH NETWORK CORPORATION,
`
`DISH NETWORK L.L.C., SLING TV
`
`L.L.C., SLING MEDIA, L.L.C., AND
`
`ARRIS GROUP, INC.,
`
`Defendants.
`
`AMENDED 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 Data LLC
`
`d/b/a IXO (“Plaintiff,” “Realtime,” or “IXO”) makes the following allegations against
`
`Defendants EchoStar Corporation, EchoStar Technologies, L.L.C., Hughes Network
`
`Systems, LLC, DISH Network Corporation, DISH Network L.L.C., Sling TV L.L.C.,
`
`Sling Media, L.L.C., and Arris Group, Inc.:
`
`PARTIES
`
`1.
`
`Realtime is a New York limited liability company. Realtime has places of
`
`business at 1828 E.S.E. Loop 323, Tyler, Texas 75701 and 66 Palmer Avenue, Suite 27,
`
`Bronxville, NY 10708. Since the 1990s, Realtime has researched and developed specific
`
`solutions for data compression, including, for example, those that increase the speeds at
`
`which data can be stored and accessed. As recognition of its innovations rooted in this
`
`1
`
`

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`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 2 of 86 PageID #: 396
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`technological field, Realtime holds over 47 United States patents and has numerous
`
`pending patent applications. Realtime has licensed patents in this portfolio to many of
`
`the world’s leading technology companies. The patents-in-suit relate to Realtime’s
`
`development of advanced systems and methods for fast and efficient data compression
`
`using numerous innovative compression techniques based on, for example, particular
`
`attributes of the data.
`2.
`
`On information and belief, EchoStar Corporation is a Nevada corporation
`
`with its principal place of business at 100 Inverness Terrace East, Englewood, CO 80112
`
`and a regular and established place of business at 10303 E Bankhead Hwy # 100, Aledo,
`
`TX 76008. See, e.g., https://www.yellowpages.com/aledo-tx/mip/echostar-satellite-
`
`11408900. Upon information and belief, EchoStar Corporation has a regular and
`
`established place of business in this District. On information and belief, EchoStar
`
`Corporation can be served through its registered agent, Corporation Service Company,
`
`1560 Broadway, Suite 2090, Denver, CO 80202. On information and belief, EchoStar
`
`Corporation directly or indirectly owns co-defendant Hughes Network Systems, LLC
`(“Hughes”).1
`3.
`
`On information and belief, EchoStar Technologies, L.L.C. is a Texas
`
`limited liability company with its principal place of business at 11717 Exploration Lane,
`
`Germantown, MD 20876 and a regular and established place of business at 10303 E
`
`Bankhead Hwy # 100, Aledo, TX 76008. See, e.g., https://www.yellowpages.com/aledo-
`
`tx/mip/echostar-satellite-11408900. Upon information and belief, EchoStar Technologies,
`
`L.L.C. has a regular and established place of business in this District. On information
`
`and belief, EchoStar Technologies, L.L.C. can be served through its registered agent,
`
`Corporation Service Company D/B/A CSC-Lawyers Inc., 211 E. 7th Street Suite 620,
`
`Austin, TX 78701. EchoStar Corporation and EchoStar Technologies, L.L.C. are
`
`1 See http://www.wsj.com/articles/SB10001424052748703584804576143833056404482
`
`
`
`2
`
`

`

`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 3 of 86 PageID #: 397
`
`
`hereinafter referred to as “EchoStar”.
`4.
`
`On information and belief, Hughes Network Systems, LLC (“Hughes”) is
`
`a Delaware limited liability company having a principal place of business at 11717
`
`Exploration Lane, Germantown, MD 20876 and regular and established places of
`
`business at 16535 Southwest Fwy, Sugar Land, TX 77479, 11415 Fm 730 N, Azle, TX
`
`76020, and 1500 Harvey Rd, College Station, TX 77840.
`
` See, e.g.,
`
`https://www.yellowpages.com/sugar-land-tx/mip/hughes-network-sys-453634557,
`
`https://www.yellowpages.com/azle-tx/mip/hughes-network-system-468970694,
`
`https://www.mapquest.com/us/texas/business-college-station/hughes-network-systems-
`
`llc-275648921. Upon information and belief, Hughes has a regular and established place
`
`of business
`
`in
`
`this District.
`
` See, e.g., http://hughesnetplans.com/satellite-
`
`internet/Texas/P/Plano/
`
`(“HughesNet Satellite
`
`Internet Plano: Making Military
`
`Technology Available to Civilians By providing such a trustworthy and protected
`
`connection, HughesNet has been named America’s #1 choice for satellite Internet. Call to
`
`order HughesNet for your Plano home today to get an Internet connection that is tried and
`
`tested, whatever your needs are.”). On information and belief, Hughes can be served
`
`through its registered agent, Corporation Service Company d/b/a CSC-Lawyers
`
`Incorporating Service, 211 E. 7th Street Suite 620, Austin, TX 78701. On information
`
`and belief, Hughes has been a direct or indirect subsidiary of EchoStar since at least 2011.
`5.
`
`On information and belief, Defendant DISH Network Corporation is a
`
`Nevada corporation with its principal office at 9601 S. Meridian Blvd., Englewood, CO
`
`80112 and a regular and established place of business at 1211 Broad St, Wichita Falls,
`
`TX 76301. See, e.g., https://www.mapquest.com/us/texas/business-wichita-falls/dish-tv-
`
`9269051. Upon information and belief, DISH Network Corporation has a regular and
`
`established
`
`place
`
`of
`
`business
`
`in
`
`this
`
`District.
`
`See,
`
`e.g.,
`
`https://www.dish.com/availability/tx/beaumont
`
`(“Get Dish TV Programming
`
`in
`
`Beaumont, Texas”). On information and belief, Defendant DISH Network Corporation
`
`
`
`3
`
`

`

`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 4 of 86 PageID #: 398
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`conducts business throughout the United States, including in this District. On
`
`information and belief, DISH Network Corporation can be served through its registered
`
`agent, R. Dodge Stanton, 9601 S. Meridian Blvd., Englewood, CO 80112.
`6.
`
`On information and belief, Defendant DISH Network L.L.C. is a Colorado
`
`limited liability company with its principal office at 9601 S. Meridian Blvd., Englewood,
`
`CO 80112 and a regular and established place of business at 1211 Broad St, Wichita Falls,
`
`TX 76301. See, e.g., https://www.mapquest.com/us/texas/business-wichita-falls/dish-tv-
`
`9269051. Upon information and belief, DISH Network L.L.C. has a regular and
`
`established
`
`place
`
`of
`
`business
`
`in
`
`this
`
`District.
`
`See,
`
`e.g.,
`
`https://www.dish.com/availability/tx/beaumont
`
`(“Get Dish TV Programming
`
`in
`
`Beaumont, Texas”). On information and belief, Defendant DISH Network L.L.C.
`
`conducts business throughout the United States, including in this District. On
`
`information and belief, DISH Network Corporation can be served through its registered
`
`agent, R. Dodge Stanton, 9601 S. Meridian Blvd., Englewood, CO 80112. DISH
`
`Network Corporation and DISH Network L.L.C. are hereinafter referred to collectively as
`
`“DISH” or “Dish”.
`7.
`
`On information and belief, Defendant Sling TV L.L.C. (“Sling TV”) is a
`
`Colorado limited liability company with its principal office at 9601 S. Meridian Blvd.,
`
`Englewood, CO 80112. On information and belief, Defendant Sling TV has a regular
`
`and established place of business in this District and conducts business throughout the
`
`United States, including in this District. On information and belief, Sling TV can be
`
`served through its registered agent, R. Dodge Stanton, 9601 S. Meridian Blvd.,
`
`Englewood, CO 80112.
`8.
`
`On information and belief, Defendant Sling Media L.L.C. (“Sling Media”)
`
`is a Delaware limited liability company with its principal office at 1051 E. Hillsdale Blvd,
`
`Suite 500, Foster City, CA 94404. On information and belief, Defendant Sling Media has
`
`a regular and established place of business in this District and conducts business
`
`
`
`4
`
`

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`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 5 of 86 PageID #: 399
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`throughout the United States, including in this District. On information and belief, Sling
`
`Media can be served through its registered agent, The Corporation Trust Company,
`
`Corporation Trust Center, 1209 Orange St., Wilmington, DE 19801.
`9.
`
`On information and belief, Defendant Arris Group, Inc. (“Arris”) is a
`
`Delaware corporation with its principal office at 3871 Lakefield Drive, Suwanee, GA,
`
`30024. On information and belief, Arris maintains a regular and established place of
`
`business in this District, for example, at 101 E Park Blvd, Plano, TX 75074. See, e.g.,
`
`http://www.buzzfile.com/business/Arris-Group,-Inc.-972-546-1700. On information and
`
`belief, Arris maintains a regular and established place of business at 4516 Seton Center
`
`Pkwy, Suite 185, Austin, TX 78759. See, e.g., http://www.arris.com/company/offices/.
`
`On information and belief, Defendant Arris conducts business throughout the United
`
`States, including in this District. On information and belief, Arris can be served through
`
`its registered agent, Corporation Service Company, 40 Technology Pkwy South, #300,
`
`Norcross, GA 30092.
`10.
`
`On information and belief, EchoStar, as the direct or indirect owner of
`
`Hughes, promotes and offers for sales Hughes-branded products, including HN/HX
`
`broadband satellite routers. See, e.g., http://www.hughes.com/resources/key-features-of-
`
`hughes-hn-slash-hx-broadband-satellite-routers/download?locale=en.
`
`As
`
`further
`
`explained below, HN/HX broadband satellite routers infringe certain asserted patents.
`
`Accordingly, each of the Defendants is properly joined in this action pursuant to 35
`
`U.S.C. § 299.
`11.
`
`On information and belief, EchoStar, as the direct or indirect owner of
`
`DISH, Sling TV, and Sling Media promotes and offers for sale DISH and Sling-branded
`
`products and services which infringe certain asserted patents. Accordingly, each of the
`
`Defendants is properly joined in this action pursuant to 35 U.S.C. § 299.
`12.
`
`On information and belief, Arris sells and offers for sale products and
`
`services incorporating technology from Sling Media which infringes certain asserted
`
`
`
`5
`
`

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`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 6 of 86 PageID #: 400
`
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`patents. Accordingly, Arris is properly joined in this action pursuant to 35 U.S.C. § 299.
`
`JURISDICTION AND VENUE
`
`13.
`
`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).
`14.
`
`This Court has personal jurisdiction over EchoStar Corporation in this
`
`action because EchoStar Corporation has committed acts within the Eastern District of
`
`Texas giving rise to this action and has established minimum contacts with this forum
`
`such that the exercise of jurisdiction over EchoStar Corporation would not offend
`
`traditional notions of fair play and substantial justice. EchoStar Corporation directly and
`
`through subsidiaries (including Hughes) or intermediaries (including distributors,
`
`retailers, and others), 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. Furthermore, upon information and belief, EchoStar
`
`Corporation has a regular and established place of business at 10303 E Bankhead Hwy #
`
`100, Aledo, TX 76008. See, e.g., https://www.yellowpages.com/aledo-tx/mip/echostar-
`
`satellite-11408900. Upon information and belief, EchoStar Corporation has a regular and
`
`established place of business in this District.
`15.
`
`This Court has personal jurisdiction over EchoStar Technologies L.L.C. in
`
`this action because EchoStar Technologies L.L.C. has committed acts within the Eastern
`
`District of Texas giving rise to this action and has established minimum contacts with this
`
`forum such that the exercise of jurisdiction over EchoStar Technologies L.L.C. would not
`
`offend traditional notions of fair play and substantial justice. EchoStar Technologies
`
`L.L.C. directly and through subsidiaries (including Hughes) or intermediaries (including
`
`distributors, retailers, and others), 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. In addition, EchoStar Technologies
`
`
`
`6
`
`

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`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 7 of 86 PageID #: 401
`
`
`L.L.C. is incorporated under the laws of the state of Texas. Furthermore, upon
`
`information and belief, EchoStar Technologies L.L.C. has a regular and established place
`
`of business at 10303 E Bankhead Hwy # 100, Aledo, TX 76008. See, e.g.,
`
`https://www.yellowpages.com/aledo-tx/mip/echostar-satellite-11408900.
`
`
`
`Upon
`
`information and belief, EchoStar Technologies L.L.C. has a regular and established place
`
`of business in this District.
`16.
`
`This Court has personal jurisdiction over Hughes in this action because
`
`Defendants have committed acts within the Eastern District of Texas giving rise to this
`
`action and has established minimum contacts with this forum such that the exercise of
`
`jurisdiction over Hughes would not offend traditional notions of fair play and substantial
`
`justice. Hughes, directly and through subsidiaries or intermediaries (including distributors,
`
`retailers, and others), 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. For example, Hughes advertises its services in this District,
`
`“HughesNet Satellite Internet Plano: Making Military Technology Available to Civilians
`
`By providing such a trustworthy and protected connection, HughesNet has been named
`
`America’s #1 choice for satellite Internet. Call to order HughesNet for your Plano home
`
`today to get an Internet connection that is tried and tested, whatever your needs are.” See,
`
`e.g., http://hughesnetplans.com/satellite-internet/Texas/P/Plano/. Hughes is registered to
`
`do business in the State of Texas and has appointed Corporation Service Company d/b/a
`
`CSC-Lawyers Incorporating Service, 211 E. 7th Street Suite 620, Austin, TX 78701 as its
`
`agent for service of process. Furthermore, Hughes has regular and established places of
`
`business at 16535 Southwest Fwy, Sugar Land, TX 77479, 11415 Fm 730 N, Azle, TX
`
`76020, and 1500 Harvey Rd, College Station, TX 77840.
`
` See, e.g.,
`
`https://www.yellowpages.com/sugar-land-tx/mip/hughes-network-sys-453634557,
`
`https://www.yellowpages.com/azle-tx/mip/hughes-network-system-468970694,
`
`https://www.mapquest.com/us/texas/business-college-station/hughes-network-systems-
`
`
`
`7
`
`

`

`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 8 of 86 PageID #: 402
`
`
`llc-275648921. Upon information and belief, Hughes has a regular and established place
`
`of business
`
`in
`
`this District.
`
` See, e.g., http://hughesnetplans.com/satellite-
`
`internet/Texas/P/Plano/
`
`(“HughesNet Satellite
`
`Internet Plano: Making Military
`
`Technology Available to Civilians By providing such a trustworthy and protected
`
`connection, HughesNet has been named America’s #1 choice for satellite Internet. Call to
`
`order HughesNet for your Plano home today to get an Internet connection that is tried and
`
`tested, whatever your needs are.”).
`17.
`
`This Court has personal jurisdiction over DISH Network Corporation in
`
`this action because DISH Network Corporation has committed acts within the Eastern
`
`District of Texas giving rise to this action and has established minimum contacts with this
`
`forum such that the exercise of jurisdiction over DISH Network Corporation would not
`
`offend traditional notions of fair play and substantial justice. DISH Network Corporation
`
`directly and/or through subsidiaries (including one or more of the named Co-Defendants)
`
`or intermediaries (including distributors, retailers, and others), 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. For example,
`
`DISH Network Corporation advertises, “Get Dish TV Programming in Beaumont, Texas”.
`
`See, e.g., https://www.dish.com/availability/tx/beaumont. Upon information and belief,
`
`DISH has a regular and established place of business at 1211 Broad St, Wichita Falls, TX
`
`76301. See, e.g., https://www.mapquest.com/us/texas/business-wichita-falls/dish-tv-
`
`9269051. Upon information and belief, DISH Network Corporation has a regular and
`
`established
`
`place
`
`of
`
`business
`
`in
`
`this
`
`District.
`
`See,
`
`e.g.,
`
`https://www.dish.com/availability/tx/beaumont
`
`(“Get Dish TV Programming
`
`in
`
`Beaumont, Texas”).
`18.
`
`This Court has personal jurisdiction over DISH Network L.L.C. in this
`
`action because DISH Network L.L.C. has committed acts within the Eastern District of
`
`Texas giving rise to this action and has established minimum contacts with this forum
`
`
`
`8
`
`

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`
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`such that the exercise of jurisdiction over DISH Network L.L.C. would not offend
`
`traditional notions of fair play and substantial justice. DISH Network L.L.C. directly
`
`and/or through subsidiaries (including one or more of the named Co-Defendants) or
`
`intermediaries (including distributors, retailers, and others), 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. For example, DISH
`
`Network L.L.C. advertises, “Get Dish TV Programming in Beaumont, Texas”. See, e.g.,
`
`https://www.dish.com/availability/tx/beaumont. Upon information and belief, DISH has
`
`a regular and established place of business at 1211 Broad St, Wichita Falls, TX 76301.
`
`See, e.g., https://www.mapquest.com/us/texas/business-wichita-falls/dish-tv-9269051.
`
`Upon information and belief, DISH Network L.L.C. has a regular and established place
`
`of business in this District. See, e.g., https://www.dish.com/availability/tx/beaumont
`
`(“Get Dish TV Programming in Beaumont, Texas”).
`19.
`
`This Court has personal jurisdiction over Sling TV L.L.C. in this action
`
`because Sling TV L.L.C. has committed acts within the Eastern District of Texas giving
`
`rise to this action and has established minimum contacts with this forum such that the
`
`exercise of jurisdiction over Sling TV L.L.C. would not offend traditional notions of fair
`
`play and substantial justice. Sling TV L.L.C. directly and/or through subsidiaries
`
`(including one or more of the named Co-Defendants) or intermediaries (including
`
`distributors, retailers, and others), 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. On information and belief, Defendant
`
`Sling TV has a regular and established place of business in this District.
`20.
`
`This Court has personal jurisdiction over Sling Media L.L.C. in this action
`
`because Sling Media L.L.C. has committed acts within the Eastern District of Texas
`
`giving rise to this action and has established minimum contacts with this forum such that
`
`the exercise of jurisdiction over Sling Media L.L.C. would not offend traditional notions
`
`
`
`9
`
`

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`
`
`of fair play and substantial justice. Sling Media L.L.C. directly and/or through
`
`subsidiaries (including one or more of the named Co-Defendants) or intermediaries
`
`(including distributors, retailers, and others), 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. On information and belief,
`
`Defendant Sling Media has a regular and established place of business in this District.
`21.
`
`This Court has personal jurisdiction over Arris Group, Inc. in this action
`
`because Arris Group, Inc. has committed acts within the Eastern District of Texas giving
`
`rise to this action and has established minimum contacts with this forum such that the
`
`exercise of jurisdiction over Arris Group, Inc. would not offend traditional notions of fair
`
`play and substantial justice. Arris Group, Inc. directly and/or through subsidiaries
`
`(including one or more of the named Co-Defendants) or intermediaries (including
`
`distributors, retailers, and others), 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. On information and belief, Arris
`
`maintains a regular and established place of business in this District, for example, at 101
`
`E Park Blvd, Plano, TX 75074. See, e.g., http://www.buzzfile.com/business/Arris-
`
`Group,-Inc.-972-546-1700. On information and belief, Arris also maintains a regular and
`
`established place of business at 4516 Seton Center Pkwy, Suite 185, Austin, TX 78759.
`
`See, e.g., http://www.arris.com/company/offices/.
`22.
`
`Venue is proper in this district under 28 U.S.C. §§ 1391(b), 1391(c) and
`
`1400(b). Defendant Echostar Technologies L.L.C. is incorporated in Texas. Upon
`
`information and belief, all Defendants have transacted business in the Eastern District of
`
`Texas and have committed acts of direct and indirect infringement in the Eastern District
`
`of Texas. In addition, Echostar maintains an Uplink & Broadcast Center in Texas located
`
`at
`
`710
`
`Conrads
`
`Ln.,
`
`New
`
`Braunfels,
`
`TX
`
`78130.
`
`See
`
`http://www.echostar.com/company/locations.aspx. In addition, on information and belief,
`
`
`
`10
`
`

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`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 11 of 86 PageID #: 405
`
`
`EchoStar has a regular and established place of business at 10303 E Bankhead Hwy #
`
`100, Aledo, TX 76008. See, e.g., https://www.yellowpages.com/aledo-tx/mip/echostar-
`
`satellite-11408900. In addition, Hughes is registered to do business in Texas and
`
`maintains a sales office in Texas located at 320 Decker, Suite 100, Irving TX 75062. See
`
`id. Upon information and belief, Hughes also has a regular and established place of
`
`business
`
`in
`
`this District.
`
` See,
`
`e.g.,
`
`http://hughesnetplans.com/satellite-
`
`internet/Texas/P/Plano/
`
`(“HughesNet Satellite
`
`Internet Plano: Making Military
`
`Technology Available to Civilians By providing such a trustworthy and protected
`
`connection, HughesNet has been named America’s #1 choice for satellite Internet. Call to
`
`order HughesNet for your Plano home today to get an Internet connection that is tried and
`
`tested, whatever your needs are.”). On information and belief, DISH, Sling TV, and
`
`Sling Media have regular and established places of business in this District. For example,
`
`DISH Network Corporation and/or DISH Network L.L.C. advertises, “Get Dish TV
`
`Programming
`
`in
`
`Beaumont,
`
`Texas”.
`
`
`
`See,
`
`e.g.,
`
`https://www.dish.com/availability/tx/beaumont.
`
` On
`
`information and belief, Arris
`
`maintains a place of business in this District at 101 E Park Blvd, Plano, TX 75074. See,
`
`e.g., http://www.buzzfile.com/business/Arris-Group,-Inc.-972-546-1700. On information
`
`and belief, Arris also maintains a regular and established place of business at 4516 Seton
`
`Center
`
`Pkwy,
`
`Suite
`
`185, Austin,
`
`TX
`
`78759.
`
`
`
`
`
`See,
`
`e.g.,
`
`http://www.arris.com/company/offices/.
`
`ASSERTED PATENTS
`
`23.
`
`The asserted patents are U.S. Patent Nos. 8,717,204 (“‘204 patent”);
`
`9,054,728 (“‘728 patent”); 7,358,867 (“‘867 patent”); 8,502,707 (“‘707 patent”),
`
`8,275,897 (“the ‘897 patent”), 8,867,610 (“the ‘610 Patent”), 8,934,535 (“the ‘535
`
`patent”), and 8,553,759 (“the ‘759 patent”) (collectively, “Asserted Patents”).
`24.
`
`The Asserted Patents have been cited as prior art during the prosecution of
`
`at least 400 patent applications of Realtime and other companies. Those other companies
`
`
`
`11
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`

`

`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 12 of 86 PageID #: 406
`
`
`include well-known technology companies such as: Quantum, Fujitsu, IBM, Seagate,
`
`STMicroelectronics, Cisco, LSI, Skyfire Labs, Chicago Mercantile Exchange, Thomson
`
`Reuters, OSR Open Systems Resources, Exegy, RIM, Renesas, Red Hat, Xerox, and
`
`Microsoft.
`
`COUNT I
`
`INFRINGEMENT OF U.S. PATENT NO. 8,717,204
`
`25.
`
`Plaintiff realleges and incorporates by reference paragraphs 1-24 above, as
`
`if fully set forth herein.
`26.
`
`Plaintiff Realtime is the owner by assignment of United States Patent No.
`
`8,717,204 entitled “Methods for encoding and decoding data.” The ‘204 patent was duly
`
`and legally issued by the United States Patent and Trademark Office on May 6, 2014. A
`
`true and correct copy of the ‘204 Patent is included as Exhibit A.
`
`Accused Instrumentality Including HN/HX Systems
`27.
`
`On information and belief, Defendants EchoStar Corporation, EchoStar
`
`Technologies L.L.C., and Hughes Network Systems LLC (collectively, “Defendants”)
`
`have offered for sale, sold and/or imported into the United States products that infringe
`
`the ‘204 patent, and continues to do so. By way of illustrative example, these infringing
`
`products include, without limitation, Defendants’ products and services, such as HN/HX
`
`Systems, and all versions and variations thereof since the issuance of the ‘204 patent
`
`(“Accused Instrumentality”).
`28.
`
`On information and belief, Defendants have directly infringed and
`
`continue to infringe the ‘204 patent, for example, through their own use and testing of the
`
`accused products to practice compression methods claimed by the ‘204 patent, including
`
`a method for processing data, the data residing in data fields, comprising: recognizing
`
`any characteristic, attribute, or parameter of the data; selecting an encoder associated with
`
`the recognized characteristic, attribute, or parameter of the data; compressing the data
`
`with the selected encoder utilizing at least one state machine to provide compressed data
`
`
`
`12
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`

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`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 13 of 86 PageID #: 407
`
`
`having a compression ratio of over 4:1; and point-to-point transmitting the compressed
`
`data to a client; wherein the compressing and the transmitting occur over a period of time
`
`which is less than a time to transmit the data in an uncompressed form. On information
`
`and belief, Defendants use the Accused Instrumentality in its ordinary and customary
`
`fashion for their own internal non-testing business purposes, while testing the Accused
`
`Instrumentality, and while providing technical support and repair services for the
`
`Accused Instrumentality
`
`to Defendants’ customers, and use of
`
`the Accused
`
`Instrumentality in its ordinary and customary fashion results in infringement of the
`
`methods claimed by the ‘204 patent.
`29.
`
`On information and belief, Defendants have had knowledge of the ‘204
`
`patent since at least the filing of the February 14, 2017 original Complaint in this action
`
`or shortly thereafter, and on information and belief, Defendants knew of the ‘204 patent
`
`and knew of their infringement, including by way of this lawsuit.
`30.
`
`Defendants’ affirmative acts of making, using, selling, offering for sale,
`
`and/or importing the Accused Instrumentality have induced since the filing of the original
`
`Complaint on February 14, 2017 and continue to induce users of the Accused
`
`Instrumentality to use the Accused Instrumentality in its normal and customary way to
`
`infringe the ‘204 patent by practicing compression methods claimed by the ‘204 patent,
`
`including a method for processing data, the data residing in data fields, comprising:
`
`recognizing any characteristic, attribute, or parameter of the data; selecting an encoder
`
`associated with the recognized characteristic, attribute, or parameter of the data;
`
`compressing the data with the selected encoder utilizing at least one state machine to
`
`provide compressed data having a compression ratio of over 4:1; and point-to-point
`
`transmitting the compressed data to a client; wherein the compressing and the
`
`transmitting occur over a period of time which is less than a time to transmit the data in
`
`an uncompressed form. For example, Defendants explain to customers the benefits of
`
`using the Accused Instrumentality, “A standard TCP/IP header is 40 bytes per packet,
`
`
`
`13
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`

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`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 14 of 86 PageID #: 408
`
`
`and most of that information is redundant for a given session. Header compression
`
`suppresses any redundant information, reducing the bandwidth required for the header.
`
`… PEP packet payload compression uses the V.44 lossless compression algorithm. …
`
`Stateful compression is able to take advantage of redundancy in all messages being sent
`
`instead of only redundancy within a message, thus providing significantly better
`
`compression ratios. Compression ratios of up
`
`to 12:1 are achieved.”
`
` See
`
`http://www.hughes.com/resources/key-features-of-hughes-hn-slash-hx-broadband-
`
`satellite-routers/download?locale=en at 9. Defendants specifically intended and were
`
`aware that the normal and customary use of the Accused Instrumentality would infringe
`
`the ‘204 patent. Defendants performed the acts that constitute induced infringement, and
`
`would induce actual infringement, with the knowledge of the ‘204 patent and with the
`
`knowledge, or willful blindness to the probability, that the induced acts would constitute
`
`infringement. On information and belief, Defendants engaged in such inducement to
`
`promote the sales of the Accused Instrumentality, e.g., through Defendants’ user manuals,
`
`product support, marketing materials, and training materials to actively induce the users
`
`of the Accused Instrumentality to infringe the ‘204 patent. Accordingly, Defendants have
`
`induced since the filing of the original Complaint on February 14, 2017 and continue to
`
`induce users of the Accused Instrumentality to use the Accused Instrumentality in its
`
`ordinary and customary way to infringe the ‘204 patent, knowing that such use
`
`constitutes infringement of the ‘204 patent.
`31.
`
`The Accused Instrumentality practices a method for processing data, the
`
`data residing in data fields. See, e.g., http://www.hughes.com/resources/key-features-of-
`
`hughes-hn-slash-hx-broadband-satellite-routers/download?locale=en at 8-9 (“HN/HX
`
`Systems provide IP/TCP/UDP/RTP header compression and payload compression in both
`
`inbound and outbound directions. A standard TCP/IP header is 40 bytes per packet, and
`
`most of that information is redundant for a given session. … PEP packet payload
`
`compression uses the V.44 lossless compression algorithm.”).
`
`
`
`14
`
`

`

`Case 6:17-cv-00084-RWS-JDL Document 23 Filed 06/06/17 Page 15 of 86 PageID #: 409
`
`
`32.
`
`The Accused Instrumentality recognizes any characteristic, attribute, or
`
`parameter of the data, for example, whether the data is packet header data or packet
`
`payload data. See, e.g., http://www.hughes.com/resources/key-features-of-hughes-hn-
`
`slash-hx-broadband-satellite-routers/download?locale=en at 8-9
`
`(“HN/HX Systems
`
`provide IP/TCP/UDP/RTP header compression and payload compression in both inbound
`
`and outbound directions. A standard TCP/IP header is 40 bytes per packet, and most of
`
`that information is redundant for a given session. Header compression suppresses any
`
`redundant information, reducing the bandwidth required for the header. This compression
`
`capability requires that a large number of the fields either do not change or change only
`
`in expected ways. Inbound header compression compresses TCP/IP headers from 40
`
`bytes to 10–12 bytes, reducing typical bandwidth usage by 15–-20%. The inbound
`
`compression algorithm is a Hughes-extended version of RFC 1144. Multiple types of IP
`
`headers can be compressed, including IP hea