Case 2:23-cv-00471-JRG Document 1 Filed 10/05/23 Page 1 of 123 PageID #: 1
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`UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
`
`Civil Action No. 23cv471
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`JURY TRIAL DEMANDED
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`SPORTSCASTR INC.
`(d/b/a PANDA INTERACTIVE),
`
`Plaintiff,
`
`v.
`
`GENIUS SPORTS LTD.,
`
`Defendant.
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff SportsCastr Inc. (d/b/a PANDA Interactive) (“Plaintiff” or “PANDA”) alleges
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`against Defendant Genius Sports Ltd. (“Defendant” or “Genius Sports”) the following:
`
`1.
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`PANDA developed, built and has obtained numerous patents covering,
`
`revolutionary Internet technology for the delivery of broadcasts that are enhanced with
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`synchronized, contextually matched, and actionable live data and content. For example, this
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`technology enables viewers to see live odds and to place a bet while watching a sporting event.
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`PANDA’s technology is ultra-low latency, push-based and scalable to millions of viewers. It has
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`been widely copied in the streaming market generally, and even more so in the exploding online
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`sports betting market. PANDA’s patented technology underpins the sports streaming industry’s
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`offerings; but those offerings, including Defendant’s offerings are without license or
`
`authorization and infringe PANDA’s patents.
`
`2.
`
`This case involves patented technologies that helped to revolutionize, and have
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`become increasingly adopted in, the fields of live video streaming, also referred to as
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`livestreaming or simply streaming. Live video streaming involves recording and broadcasting an
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`event, such as a sporting event, concert, or product promotion, over the internet in real-time or
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`1
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`Genius Sports Ex. 1014
`p. 1
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`
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`near real-time to multiple viewers across the network.
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`3.
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`In addition to covering an event with video signals, today’s live video streaming
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`also attempts to provide viewers with synchronized event information, such as game status of a
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`sporting event or price information of a product promotion.
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`4.
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`The synchronized event information enabled by the patented technologies may
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`also be actionable. For example, a viewer may click the game status to view or receive more
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`detailed statistics and analysis (such as player and/or game statistics, betting odds, or betting
`
`opportunities) or click the price information to place an order of a promoted product. The
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`interactive features of the patented technologies allow the viewer to interact and/or transact, for
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`example, by placing a bet or purchasing a promoted product, while viewing the sporting event
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`without interruption.
`
`5.
`
`By the early-to-mid-2010s, as social media and smartphones became widespread,
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`the industry of live video streaming saw exponential growth. By the mid-2010s, many with a
`
`smartphone and internet access were able to become content broadcasters via one of the social
`
`media platforms, such as YouTube, Facebook Live, and/or TikTok.
`
`6.
`
`Despite substantial investments in resources and time, conventional video
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`streaming systems still suffer from several drawbacks that often lead to frustrating user
`
`experiences for broadcasters, viewers, or both. One such drawback is the synchronization between
`
`contextual-matched event information and the video signals. In many cases, such as with live
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`streaming sports, or sports-betting related content, any noticeable offset (e.g., greater than 1
`
`second) often confuses viewers, and greatly hampers the viewing experience.
`
`7.
`
`Relatedly, conventional live video streaming systems also struggle to synchronize
`
`the broadcasting among multiple viewers. The offset between different viewers can become
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`2
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`p. 2
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`especially significant when they watch videos of different qualities or use network connections
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`having different bandwidths.
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`8.
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`Plaintiff’s patented technologies helped transform the way video streaming is
`
`conducted, reducing, and often even eliminating the shortcomings that plagued conventional
`
`video streaming systems.
`
`9.
`
`More specifically, Plaintiff’s patented technologies use a novel socket server
`
`architecture that allows actionable and contextual-matched information to be provided in a
`
`synchronized and efficient way with online streaming video.
`
`10.
`
`Traditional socket server architectures provided one-to-one connections, where a
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`unique identifier was provided to each authenticated user to connect to their own unique socket.
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`11.
`
`Plaintiff’s patented technologies, on the other hand, employ a novel socket server
`
`architecture, in which a socket is dedicated to a particular live stream to all viewers watching that
`
`live stream. For example, Plaintiff’s patented technologies allow multiple users to connect to the
`
`same event socket, thereby achieving a one-to-many socket architecture. Plaintiff’s patented
`
`technologies’ use of a one-to-many socket architecture was counter to the then-conventional
`
`understanding and use of sockets. For example, prior art socket architectures were not designed
`
`or used for the delivery of interactive and synchronous content alongside live video streams, let
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`alone multi-cast (or one-to-many) delivery of content over a single unauthenticated socket.
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`Rather, prior art sockets were used in specific and limited applications, such as for chat rooms,
`
`delivering update notifications, or other lower data-rate information, where each individual user
`
`was connected to a separate socket and given a unique user id. (See, PANDA_000182-
`
`PANDA_000195, https://web.archive.org/web/20160307174809/http://blog.pusher.com/using-
`
`your-real-time-data-features/.)
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`3
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`Genius Sports Ex. 1014
`p. 3
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`12.
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`In operation, Plaintiff’s patented technologies employ a web server to deliver a
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`uniform resource locator (URL), which contains the address of the socket dedicated to a streamed
`
`event, to viewers interested in watching the event. Viewers can then use the received URL to
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`connect to the dedicated socket and retrieve synchronized event information from the socket
`
`server. The interconnectivity of respective sockets of a socket server to multiple viewer client
`
`devices allows for synchronous real-time sharing of event information relating to a live event.
`
`13.
`
`Plaintiff’s patented technologies also employ separate channels for video content
`
`and event information. More specifically, video content is received at a viewer device on a first
`
`communication channel (e.g., from a media server), while other video-related information (e.g.,
`
`game status, price information) are received on a different second communication channel
`
`originating at a designated socket of socket server. The different information streams on the
`
`separate first and second channels are seamlessly integrated at the viewer device and displayed to
`
`the viewer. In this manner, contextual-matched and actionable information is synchronized with
`
`livestreaming video. The delivery of video and video-related information over separate channels
`
`allows for unmodified video to be delivered, which is an important improvement over prior art
`
`systems which required contextual information to be embedded in the video stream itself,
`
`increasing processing delays and requiring special license and media rights held by only a few
`
`individuals.
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`14.
`
`Plaintiff has implemented its patented technologies in its video-streaming products
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`including a video-based social network targeting consumers (SportsCastr) and a B2B software
`
`solution designed for major enterprises, sports media, affiliates, and betting operators (PANDA
`
`Studio). It was one of the first companies to receive an investment and licensing deal from the
`
`NFL Players Association (NFLPA) and was an officially licensed NFLPA platform.
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`4
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`Genius Sports Ex. 1014
`p. 4
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`15.
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`Over the years, Plaintiff has also received numerous accolades and awards for its
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`products and services, including winning Sports Tech Tokyo and being named a finalist in the
`
`Yahoo! Sports Tech Awards and Sports Business Journal’s Best in Sport’s Tech in 2019. Its
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`technology and platform have been featured in dozens of mainstream and trade publications and
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`TV broadcasts including CNBC, Yahoo!, CNet, Sports Business Journal, Forbes and many more.
`
`16.
`
`Plaintiff currently owns numerous patents and pending patent applications
`
`describing and claiming these technologies and other innovations, including U.S. Patent Nos.
`
`10,805,687 (“the ’687 Patent”), 11,039,218 (“the ’218 Patent”), and 10,425,697 (“the ’697
`
`Patent”).
`
`17.
`
`Defendant Genius Sports is a direct competitor of Plaintiff and provides video
`
`streaming software and systems that, without authorization, implements Plaintiff’s patented
`
`technologies. Genius Sports provides a suite of infringing video-streaming products that (1)
`
`facilitate providing live streams of sporting events to end users and (2) integrate with
`
`broadcasters’ streams and sportsbooks’ platforms alike (e.g., LiveData, LiveTrading, Genius
`
`Trading Services, BetVision, and In-Play MultiBet) (“the Accused Products”). Through
`
`Defendant’s illegal and unauthorized use of Plaintiff’s patented technology, Defendant has earned
`
`significantly increased profits, revenue, market capital, and market share.
`
`18.
`
`Plaintiff brings this action to seek damages for and ultimately to stop Defendant’s
`
`continued infringement of Plaintiff’s patents, including in particular the ’687, ’218, and ’697
`
`Patents (collectively, the “Asserted Patents”; Exhibits 1-3). As a result of Defendant’s unlawful
`
`competition in this District and elsewhere in the United States, Plaintiff has lost sales and profits
`
`and suffered irreparable harm, including lost market share and goodwill.
`
`5
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`Genius Sports Ex. 1014
`p. 5
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`
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`NATURE OF THE CASE
`
`19.
`
`Plaintiff brings claims under the patent laws of the United States, 35 U.S.C. § 1,
`
`et seq., for infringement of the Asserted Patents. Defendant has infringed and continues to infringe
`
`each of the Asserted Patents under at least 35 U.S.C. §§271(a), 271(b) and 271(c).
`
`THE PARTIES
`
`20.
`
`Plaintiff, SportsCastr Inc., is the owner by assignment of each of the Asserted
`
`Patents.
`
`21.
`
`Plaintiff has launched multiple video-streaming products incorporating its
`
`patented technologies, including for example the SportsCastr mobile app for sports fans and
`
`journalists and PANDA Studio, a B2B video streaming platform for sports media, betting
`
`operators and affiliates.
`
`22.
`
`23.
`
`Plaintiff is a registered business in Delaware.
`
`On information and belief, Defendant Genius Sports is a foreign entity
`
`incorporated in the United Kingdom with its headquarters and principal place of business in
`
`London, England. (See, PANDA_000028-PANDA_000047, https://geniussports.com/contact-
`
`us/.)
`
`JURISDICTION & VENUE
`
`24.
`
`This action arises under the Patent Laws of the United States, 35 U.S.C. § 1, et
`
`seq. The Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a).
`
`25.
`
`Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391(b) and (c)
`
`and 28 U.S.C. § 1400(b). Upon information and belief, Genius Sports is a foreign entity over
`
`which venue is proper under 28 U.S.C. §1391(c). On information and belief, Genius Sports has
`
`also committed acts of infringement within this District.
`
`6
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`Genius Sports Ex. 1014
`p. 6
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`
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`26.
`
`On information and belief, Genius Sports is subject to this Court's specific and
`
`general personal jurisdiction, pursuant to due process and Tex. Civ. Prac. & Rem. Code § 17.042,
`
`due at least to its recruitment activities and employment of citizens of Texas in this forum.
`
`27.
`
`On information and belief, Genius Sports has a regular and established practice of
`
`recruiting employees for work in Texas in furtherance of its business, and specifically in relation
`
`to the Accused Products. For example, as shown below, Genius Sports is actively recruiting an
`
`on-site sports statistician in Texas in connection with furthering its business and offering for sale
`
`and selling the Accused Products:
`
`(See, PANDA_000136, https://www.linkedin.com/jobs/view/sports-statistician-at-genius-sports-
`
`3693048275/.) Genius Sports had previously posted an opening for another sports statistician in
`
`Waco, TX only a month earlier:
`
`
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`7
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`Genius Sports Ex. 1014
`p. 7
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`
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`(See, PANDA_000048, https://www.linkedin.com/jobs/view/sports-statistician-at-genius-sports-
`
`3679122706/.) On information and belief, the exemplary recruiting effort is demonstrative of a
`
`larger recruiting effort to recruit citizens of Texas to perform jobs in relation to the Accused
`
`Products. This conduct adequately shows Genius Sports does business in Texas sufficient to
`
`establish jurisdiction under Tex. Civ. Prac. & Rem. Code § 17.042.
`
`28.
`
`This Court has personal jurisdiction over Genius Sports in the State of Texas and
`
`in this District. Genius Sports has purposely directed its activities toward the State of Texas which
`
`give rise to the causes of action asserted by Plaintiffs such that the exercise of personal jurisdiction
`
`by courts within the State of Texas is fair and reasonable. On information and belief, Genius
`
`Sports is a foreign corporation with significant contacts with this District. Through its activities
`
`in this District, Genius Sports has directly and/or through intermediaries including partners,
`
`purposefully and voluntarily placed products and/or provided services that practice the systems
`
`and methods claimed in the Asserted Patents into the stream of commerce with the intention and
`
`expectation that they will be purchased and used by customers in the State of Texas and within
`
`this District. As an example, on February 17, 2023, Genius Sports entered into an exclusive data
`
`distribution agreement entitled “Official Betting Data Distribution Partner and Free-to-Play
`
`8
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`Genius Sports Ex. 1014
`p. 8
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`
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`Provider of the League,” with the XFL, which is headquartered in Arlington, TX. (See,
`
`PANDA_000051-PANDA_000054,
`
`https://investors.geniussports.com/news/news-
`
`details/2023/XFL-and-Genius-Sports-Strike-Official-Data-Distribution-and-Fan-Engagement-
`
`Partnership/default.aspx;
`
`PANDA_000019-PANDA_000020,
`
`https://www.arlingtontx.gov/news/my_arlington_t_x/news_stories/xfl_hub_arlington.) Through
`
`this agreement, Sports Genius provided services that practice the systems and methods claimed
`
`in the Asserted Patents in the State of Texas and within this District.
`
`29.
`
`On information and belief, Genius Sports also uses a network of partners to
`
`provide the Accused Products and implementation services for the Accused Products to its
`
`customers the State of Texas and within this District. Genius Sports has already entered into data
`
`partnerships with U.S. professional sports leagues, including the National Basketball Association,
`
`the National Football League, the Extreme Football League, Major League Baseball, and
`
`NASCAR. (See, PANDA_000130-PANDA_000131, https://www.reuters.com/article/genius-
`
`sports-group-ma-dmy-technologygro/update-1-uks-genius-sports-to-go-public-in-1-5-bln-deal-
`
`with-new-york-listed-spac-idUSL4N2HI202.)
`
`30.
`
`On information and belief, Genius Sports places these products and/or provides
`
`services in the stream of commerce with the knowledge and intention that they are used by persons
`
`residing in Texas. On information and belief, the Accused Products are used in multiple
`
`neighboring states that have legalized gambling, including Louisiana and Arkansas. (See,
`
`PANDA_000132-PANDA_000135, https://www.bettexas.com/news/Genius Sports-s-brandt-
`
`iden-bullish-on-texas-sports-betting-being-legalized.
`
`See
`
`also,
`
`PANDA_000206-
`
`PANDA_000208,
`
`https://www.gamingtoday.com/news/louisiana-sports-betting-texans-
`
`crossing-state-border-impact/.)
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`9
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`Genius Sports Ex. 1014
`p. 9
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`

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`31.
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`On information and belief, notwithstanding Texas state law, numerous residents
`
`in Texas utilize products, including the Accused Products, to place sports wagers. Studies from
`
`Eilers & Krejcik Gaming indicate that Texas residents place as many as two million offshore bets
`
`a year on sports, totaling an estimated $8.7 billion. During Texas’ recent legislative session,
`
`Representative Jeff Leach, who represents residents within this District in the Texas House of
`
`Representatives, authored legislation to address the large volume of illegal sports betting that
`
`occurs in the State of Texas. Rep. Leach testified before a House committee, “The hundreds of
`
`thousands of Texans, who every year are placing nearly $7 billion in sports wagers, are doing so
`
`illegally and they’re doing so criminally. We have the opportunity with this legislature to
`
`implement smart, safe and efficient oversight over the sports betting industry and sports wagering
`
`activities
`
`in
`
`the
`
`state
`
`of
`
`Texas.”
`
`(See,
`
`PANDA_00225-PANDA_00227,
`
`https://www.statesman.com/story/news/politics/state/2023/03/24/texas-legislature-sports-
`
`betting-gambling-casino-rick-perry-jeff-leach/70042725007/.)
`
`32.
`
`Furthermore, Genius Sports has entered into streaming and broadcast agreements
`
`with multiple networks and broadcasters who broadcast sports media in the State of Texas and
`
`within this District. For example, Genius Sports partnered with DraftKings to provide sportsbook
`
`data and live video feeds for over 170,000 sporting events per year. (See, PANDA_000009-
`
`PANDA_000014,
`
`https://www.cnbc.com/2021/08/05/draftkings-partners-with-genius-sports-
`
`for-sports-betting.html.) As previously noted, Genius Sports has exclusive data rights with the
`
`XFL, and the XFL’s “Hub” for all eight of the League’s team is located in Arlington, TX. (See,
`
`Bates Number PANDA_000019-PANDA_000020, https://www.arlingtontx.gov/news/my_
`
`arlington_t_x/news_stories/xfl_hub_arlington.) Arlington’s Choctaw Stadium serves as the in-
`
`week practice facility for both the Arlington Renegades and the Houston Roughnecks, and it
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`10
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`Genius Sports Ex. 1014
`p. 10
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`
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`is the home stadium for the Arlington Renegades.
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`
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`(See, PANDA_000019 at PANDA_000020, https://www.arlingtontx.gov/news/my_
`
`arlington_t_x/news_stories/xfl_hub_arlington.)
`
`33.
`
`Texas is home to 12 major league men’s professional teams and two major league
`
`women’s professional teams. Three of these teams are located in this District—the Dallas
`
`Cowboys, the Dallas Stars, and FC Dallas, each of which are headquartered in Frisco, Texas.
`
`34.
`
`Texas is also home to numerous college-level sports teams. Four NCAA Division
`
`1 Colleges are located in this District.
`
`35.
`
`On information and belief, Genius Sports and/or its partners intentionally use and
`
`profit from data and video from professional and college-level Texas sports teams through the
`
`Accused Products. For example, Genius Sports has partnered with the NCAA to develop the
`
`NCAA LiveStats solution, which provides a statistics technology platform for various college-
`
`11
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`Genius Sports Ex. 1014
`p. 11
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`
`
`level sports, including basketball, volleyball, soccer and football. (See, PANDA_000512-
`
`PANDA_000525,
`
`http://fs.ncaa.org/Docs/stats/ForSIDs/LiveStats.pdf;
`
`see
`
`also
`
`PANDA_000526-PANDA_000529,
`
`https://ncaamanager.com/ncaa/home.) While
`
`this
`
`partnership does not currently include betting rights, betting is not required in order for the
`
`Accused Products to infringe the Asserted Patents as set out below, and certain NCAA members
`
`have already begun discussions of legalizing sports betting in states where it is currently not
`
`allowed.
`
`(See,
`
`PANDA_000530-PANDA_000532,
`
`https://www.espn.com/chalk/story/_/id/23502387/sports-betting-ncaa-announces-10-year-data-
`
`partnership-genius-sports.)
`
`36.
`
`For at least these reasons, personal jurisdiction exists under Tex. Civ. Prac. & Rem.
`
`Code § 17.042 and venue is proper in this District under 28 U.S.C. §1391(c).
`
`PLAINTIFF’S PATENTED INNOVATIONS
`
`37.
`
`Plaintiff PANDA Interactive, and its predecessors, were all pioneers and leading
`
`innovators in developing and providing advanced video streaming solutions, including SportsCastr
`
`and PANDA Studio that offers technology platforms that enable live and interactive video streaming
`
`enhanced with vibrant real-time visuals and overlays that are contextually matched and synchronized
`
`with any live or pre-recorded video.
`
`38.
`
`The Asserted Patents discussed below capture technology, features, and processes that
`
`reflect these innovations, and improve on traditional video streaming systems.
`
`39.
`
`The ’687, ’218, and ’697 Patents are part of the same patent family and generally
`
`disclose and claim systems and processes related to video streaming with contextual-matched
`
`event information. Plaintiff owns by assignment the entire right, title, and interest in and to the
`
`’687, ’218, and ’697 Patents.
`
`12
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`Genius Sports Ex. 1014
`p. 12
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`

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`40.
`
`The ’687 Patent is entitled “Systems, apparatus, and methods for scalable low-
`
`latency viewing of broadcast digital content streams of live events, and synchronization of event
`
`information with viewed streams, via multiple internet channels,” was filed on September 24,
`
`2019, and was duly and legally issued by the United States Patent and Trademark Office
`
`(“USPTO”) on October 13, 2020. The ’687 Patent claims priority to provisional application No.
`
`62/371,558, filed on August 5, 2016. A true and correct copy of the ’687 Patent is attached as
`
`Exhibit 1.
`
`41.
`
`The ’218 Patent is entitled “Systems, apparatus and methods for rendering digital
`
`content relating to a sporting event with online gaming information,” was filed on January 5,
`
`2021, and was duly and legally issued by the USPTO on June 15, 2021. The ’218 Patent claims
`
`priority to the same provisional application as the ’687 Patent. A true and correct copy of the ’218
`
`Patent is attached as Exhibit 2.
`
`42.
`
`The ’697 Patent is entitled “Systems, apparatus, and methods for scalable low-
`
`latency viewing of broadcast digital content streams of live events, and synchronization of event
`
`information with viewed streams, via multiple internet channels,” was filed on February 5, 2019,
`
`and was duly and legally issued by the USPTO on September 24, 2019. The ’697 Patent claims
`
`priority to the same provisional application as the ’687 Patent. A true and correct copy of the ’697
`
`Patent is attached as Exhibit 3.
`
`43.
`
`Conventional video streaming systems hard-embedded event information into the
`
`video signals and delivered them together to viewers. (See, Exhibit 2, ’218 Patent, at 28:59-65),
`
`which had the drawbacks discussed above, including processing overhead and limited licensing
`
`and rights.
`
`44.
`
`Conventional approaches to live video streaming had significant shortcomings that
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`13
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`Genius Sports Ex. 1014
`p. 13
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`
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`often lead to frustrating user experiences. For example, the viewer latency, i.e., the delay between
`
`a first user generating a live video stream for transmission via the Internet and a second user
`
`receiving a copy of the live video stream via the Internet for viewing, was still significant. (See,
`
`Exhibit 2, ’218 Patent, at 2:40-52.) For example, mainstream platforms such as Twitch.tv and
`
`Facebook had about 10-15 seconds of view latency. Id.
`
`45.
`
`Furthermore, conventional video streaming systems also had difficulties in
`
`providing relatively low latency copies of live video streams with relatively high quality (e.g.,
`
`high-definition HD and high bit rate, such as 2 to 5 megabits per second) or allowing for different
`
`classes or types of viewers to flexibly access copies of a live video stream via different live
`
`streaming formats, which may lead to different qualities of service. (Exhibit 2, ’218 Patent, at
`
`2:55-65.)
`
`46.
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`By contrast, the methods and systems disclosed and claimed in the Asserted
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`Patents provide a novel and specific technological improvement over the prior art, by among other
`
`things, performing live video streaming that is enhanced with a one-to-many socket architecture
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`for real-time, contextually matched and actionable event information, in which one socket of a
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`socket server dedicated to a particular event allows multiple viewer client devices to establish an
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`event information channel with the socket server, such that the event information is shared in a
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`synchronized manner by all broadcasters/viewers following the particular event. (Exhibit 2, ’218
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`Patent, at 20:16-30; 21:56-22:4; 22:26-57; 23:4-18; 27:23-45; 29:43-61; 53:34-50.) To this end,
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`the patented technologies use a web server to provide viewers with an identifier of the particular
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`event, also referred to as EventID, which corresponds to the socket dedicated to a particular event.
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`Viewers who are interested in watching the live stream of the particular event can then use the
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`received EventID to connect to the dedicated server. In response, the socket server transmits the
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`event information associated with the particular event back to the viewers via an event
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`information channel. (Exhibit 2, ’218 Patent, at 22:5-25; 23:37-63.)
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`47.
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`The event information channel that is configured to transmit event information to
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`viewers is separate from a video channel that is configured to transmit video signals, which can
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`be the live video of the event being streamed or any other video-based commentary (e.g., provided
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`by broadcasters). Providing sockets dedicated to the event information and separate from the live
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`stream of video-based commentary provides for user-interactive features in connection with the
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`event information, such as clickable overlays, screen animations, and special effects graphics
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`incorporating the event information. For example, the user may interact with an overlay or on
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`screen graphic including the event information to obtain access to additional (and in some cases
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`more detailed) information relating to the event (e.g., a drill down on more granular event
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`information, or a redirect to a web site or other app related to the particular event) or to make a
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`transaction such as placing a bet or purchasing merchandise. (Exhibit 2, ’218 Patent, at 7:26-47;
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`23:4-18; 27:1-22; 29:43-61.)
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`48.
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`Each of the claimed inventions of the Asserted Patents is necessarily rooted in
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`computer technology—in other words, the synchronized streaming of events and associated event
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`information to multiple viewers is fundamentally and inextricably a problem experienced with
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`computer technology and networks—and addresses this fundamental computer technology
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`problem with a computer technology solution.
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`49.
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`In addition, the Asserted Patents improve the technical functioning of the
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`computer network using techniques, such as one-to-many socket architecture and separate
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`communication channels for video and other event information. The architectural difference
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`between the patented technologies and prior art systems effectively addresses identified
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`Case 2:23-cv-00471-JRG Document 1 Filed 10/05/23 Page 16 of 123 PageID #: 16
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`
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`weaknesses in conventional systems and processes. (See, e.g., Exhibit 2, ’218 Patent, at 26:37-
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`27:45; 28:59-29:61.)
`
`50.
`
`For example, one technical challenge overcome by the inventive concepts
`
`described and claimed in the Asserted Patents relates to the display of event information updates
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`(if present, e.g., if the broadcast is associated with an event), as well as screen animations and
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`other special effects graphics that may be generally associated with the video associated with a
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`live stream, in a manner that is synchronized across multiple live streams with appreciably low
`
`latency. This is a particularly relevant consideration when multiple broadcasters are providing
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`video-based commentary for the same event, and each of these broadcasters may have multiple
`
`viewers of their broadcast. Accordingly, the technical challenge is to provide the same event
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`information, and periodic updates to this event information, in a synchronized and low-latency
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`manner to all of these broadcasters and viewers interested in following the same event. (Exhibit
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`2, ’218 Patent, at 26:39-56.)
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`51.
`
`The Asserted Patents describes and claims a technological solution implemented
`
`on both the client devices and the server architecture to which the client devices are
`
`communicatively coupled. This
`
`technological solution
`
`involves
`
`the use of multiple
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`communication channels respectively dedicated to video content from a given broadcaster and
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`event information germane to an event about which any broadcaster may be providing video-
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`based commentary. (Exhibit 2, ’218 Patent, at 26:56-67.)
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`52.
`
`As discussed above, event information and updates to event information are
`
`provided to broadcaster client devices and viewer client devices via a socket-based “event
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`information channel” dedicated to the event, which is separate from the copy of the live stream
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`of video-based commentary provided on a “video channel.” Thus, all viewers and broadcasters
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`of the event, regardless of which live stream they may be generating or watching, connect to one
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`or more sockets of a socket server that is/are dedicated to the event, such that all live streams
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`relating to the event are similarly synchronized to event information and updates to same. (Exhibit
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`2, ’218 Patent, at 27:1-13.)
`
`53.
`
`Notably, if a viewer switches amongst different broadcasters of the same event
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`(e.g., the viewer originally watches a first live stream from a first broadcaster of the event, and
`
`later selects a second live stream from a second broadcaster of the same event), the event
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`information and updates to the same remain synchronized with all live streams from the different
`
`broadcasters, providing for a smooth experience across multiple broadcasters and viewers, thus
`
`enabling broadcasters and rights-holders offer personalized broadcasts in multiple languages and
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`vantage points. (Exhibit 2, ’218 Patent, at 27:14-22.)
`
`54.
`
`Another technical challenge overcome by the Asserted Patents relates to client-
`
`side rendering of overlays, on-screen interactive animation, special effects, and/or event
`
`information. By way of background, in conventional sports broadcasting, game information (such
`
`as player and betting stats), and current score information, also sometimes referred to as a
`
`“scorebug,” as well as screen animations and other special effects graphics, are hard-embedded
`
`into the live stream of the game broadcast itself that is received by viewers. (Exhibit 2, ’218
`
`Patent, at 28:59-65.) This hard-embedding approach is inflexible and may cause licensing issues
`
`for right holders if the video feed is modified to add customized event information.
`
`55.
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` Unlike conventional systems, in the technological solution offered by the
`
`Asserted Patents, graphics and effects are generated by the client device itself, separate from a
`
`given broadcaster’s video-based commentary or other video signals, and then integrated with
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`(e.g., superimposed or overlaid on) the broadcaster’s video-based commentary or other video
`
`17
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`p. 17
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`Case