Case 2:15-cv-00926-RWS-RSP Document 1 Filed 06/02/15 Page 1 of 6 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISION
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`Case No. 2:15-cv-926
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`Jury Trial Demanded
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`FASTVDO LLC,
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` Plaintiff,
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`v.
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`ZTE CORPORATION and ZTE (USA), INC.,
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` Defendants.
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`COMPLAINT FOR PATENT INFRINGEMENT
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`In this action for patent infringement, Plaintiff FastVDO LLC (“FastVDO”) makes the
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`following allegations against ZTE Corporation and ZTE
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`(USA),
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`Inc.
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`(collectively,
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`“Defendants”):
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`BACKGROUND
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`1.
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`Data compression and decompression techniques are commonly applied in order
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`to transmit large amounts of data, such as audio or image data, over channels with limited
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`bandwidth or to store data in limited memory space. Compressed data, however, is highly
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`susceptible to errors that can result in catastrophic effects on the reconstructed data, thereby
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`necessitating the implementation of error protection techniques. Such error protection, however,
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`decreases the efficiency of the data transmission and can result in delays.
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`2.
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`In 1992, James Meany and Christopher Martens, while working in the aerospace
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`and defense industry, began a project to develop a reduced bandwidth digital data link for use in
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`man-in-the-loop missile control systems. This was part of a larger effort called the Advanced
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`Terminal Guidance (“ATG”) project.
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`3.
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`Error correction and detection was essential to handle channel errors on the link in
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`these highly sensitive and important aerospace and defense projects. Meany and Martens, in
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`working to address error vulnerabilities, further developed an entirely new error resilient coding
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`scheme that achieves improved error resilience while providing better coding efficiency than
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`previous coding methods. Consequently, their systems and methods included novel approaches
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`using unequal error-protection coding and were successful in increasing overall throughput over
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`an error-protected link.
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`4.
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`In early 1995, Meany and Martens diligently began preparations to seek patent
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`protection for their inventions, and filed a patent application with the United States Patent and
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`Trademark Office (“USPTO”) on April 17, 1996. On December 15, 1998, the USPTO issued
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`U.S. Patent No. 5,850,482 (the “’482 patent”), entitled “Error Resilient Method and Apparatus
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`for Entropy Coding.” Since then, the ’482 patent has been cited in at least 127 other U.S. patents
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`or patent applications.
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`THE PARTIES
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`5.
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`FastVDO is a Florida limited liability corporation with a principal place of
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`business at 3097 Cortona Drive, Melbourne, Florida 32940.
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`6.
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`On information and belief, Defendant ZTE Corporation (“ZTE Corp.”) is a
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`corporation organized and existing under the laws of the People’s Republic of China with a
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`principal place of business at ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan
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`District, Shenzhen, Guangdong Province, P.R. China 518057.
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`7.
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`On information and belief, Defendant ZTE (USA), Inc. (“ZTE USA”) is a
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`subsidiary of ZTE Corp., and is a New Jersey corporation with its principal place of business at
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`2425 North Central Expressway, Suite 600, Richardson, Texas 75080.
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`JURISDICTION AND VENUE
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`8.
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`This action arises under the patent laws of the United States, 35 U.S.C. § 1 et seq.,
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`including § 271.
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`9.
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`10.
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`This Court has subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1338(a).
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`This Court has personal jurisdiction over Defendants in this action because
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`Defendants have committed acts within this District giving rise to this action and have
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`established minimum contacts with this forum such that the exercise of jurisdiction over
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`Defendants would not offend traditional notions of fair play and substantial justice. Defendants,
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`directly and through subsidiaries or intermediaries (including distributors, retailers, and others),
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`have committed and continue to commit acts of infringement in this District by, among other
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`things, making, using, importing, offering for sale, and/or selling products that infringe the
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`asserted patent, and inducing others to infringe the asserted patent.
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`11.
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` Venue is proper in this District under 28 U.S.C. §§ 1391(b)-(d) and 1400(b)
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`because, among other reasons, Defendants are subject to personal jurisdiction in this District, and
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`Defendants have committed and continue to commit acts of patent infringement in this District.
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`COUNT I
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`INFRINGEMENT OF U.S. PATENT NO. 5,850,482
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`12.
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`FastVDO incorporates by reference the allegations in the foregoing paragraphs,
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`and further alleges as follows:
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`13.
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`FastVDO is the owner by assignment of the ’482 Patent, a true and correct copy
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`of which is attached as Exhibit A to this Complaint.
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`14.
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`The ’482 patent relates to methods and apparatuses for compressing and
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`decompressing data by entropy encoding and decoding. More particularly, the ’482 patent
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`provides, for example, improved error-resilient methods and apparatuses for encoding and
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`decoding that utilize unequal error protection techniques. These techniques include, inter alia,
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`generating a plurality of code words representative of respective portions of the data and
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`providing error protection to at least one of the first portions of the plurality of code words while
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`maintaining any error protection provided to one or more other portions of the data at a lower
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`level than the error protection provided to the respective first portion.
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`15.
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`Defendants, in violation of 35 U.S.C. § 271, have infringed and continue to
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`directly infringe one or more claims of the ’482 patent, in this District and elsewhere in the
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`United States, by manufacturing, using, selling, offering for sale, and/or importing products that
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`utilize, for example, unequal error-protection coding, including products that comply with
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`Adaptive Multi-Rate (“AMR”) and Adaptive Multi-Rate, Wide-Band (“AMR-WB”) protocols,
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`such as the ZTE Zinger smartphone series, and any such reasonably similar products
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`(collectively, the “Accused Devices”). Defendants have committed these acts of infringement
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`without license or authorization.
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`16.
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`Defendants also indirectly infringe the ’482 patent by inducing infringement by
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`others, such as manufacturers, resellers, and/or end-users of the Accused Devices, of one or more
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`claims of the ’482 patent in violation of 35 U.S.C. § 271. On information and belief, Defendants
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`knew of the ’482 Patent and knew of their infringement, including by way of this lawsuit.
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`Defendants’ affirmative acts in this District of, inter alia, selling the Accused Devices and
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`causing the Accused Devices to be manufactured and distributed, and providing instruction
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`manuals, user manuals, and advertising pamphlets for, and describing the operation of, the
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`Accused Devices, have induced and continue to induce Defendants’ manufacturers, resellers,
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`and/or end-users to use, sell, offer for sale, and/or import the Accused Devices in their normal
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`and customary way to infringe the ’482 patent. Defendants specifically intended and were aware
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`that these normal and customary activities would infringe the ’482 patent. Defendants performed
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`the acts that constitute induced infringement, and would induce actual infringement, with the
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`knowledge of the ’482 patent and with knowledge, or willful blindness to the probability, that the
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`induced acts would constitute infringement.
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`17.
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`By engaging in the conduct described herein, Defendants have injured FastVDO
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`and are thus liable for infringement of one or more claims of the ’482 patent under 35 U.S.C. §
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`271.
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`18.
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`As a result of Defendants’ infringement of the ’482 patent, FastVDO has been
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`damaged and is entitled to a money judgment in an amount adequate to compensate for
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`Defendants’ infringement, but in no event less than a reasonable royalty for the use made of the
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`invention by Defendants, together with interest and costs as fixed by the Court.
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`FastVDO respectfully requests the following relief from this Court:
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`PRAYER FOR RELIEF
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`A.
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`B.
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`A judgment in favor of FastVDO that Defendants have infringed the ’482 patent;
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`A judgment and order requiring Defendants to pay FastVDO its damages, costs,
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`expenses, and pre-judgment and post-judgment
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`interest for Defendants’
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`infringement of the ’482 patent as provided under 35 U.S.C. § 284;
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`C.
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`A judgment and order finding that Defendants have willfully infringed the ’482
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`patent and awarding FastVDO up to three times the amount of its actual damages
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`for Defendants’ willful infringement, as authorized by 35 U.S.C. § 284;
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`D.
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`A judgment and order finding that this is an exceptional case within the meaning
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`of 35 U.S.C. § 285 and awarding to FastVDO its reasonable attorneys’ fees
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`against Defendants;
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`E.
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`Any and all other relief to which FastVDO may be entitled.
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`DEMAND FOR JURY TRIAL
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`Pursuant to Rule 38 of the Federal Rules of Civil Procedure, FastVDO requests a trial by
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`4
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`jury of any issues so triable by right.
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`Case 2:15-cv-00926-RWS-RSP Document 1 Filed 06/02/15 Page 6 of 6 PageID #: 6
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`Respectfully Submitted,
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`By: /s/ Charles Ainsworth
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`Charles Ainsworth
`State Bar No. 00783521
`Robert Christopher Bunt
`State Bar No. 00787165
`PARKER, BUNT & AINSWORTH, P.C.
`100 E. Ferguson, Suite 1114
`Tyler, TX 75702
`903/531-3535
`903/533-9687
`E-mail: charley@pbatyler.com
`E-mail: rcbunt@pbatyler.com
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`DATED: June 2, 2015
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` RUSS AUGUST & KABAT
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` Marc A. Fenster (CA SBN 181067)
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` Reza Mirzaie (CA SBN 246953)
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` 12424 Wilshire Boulevard, 12th Floor
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` Los Angeles, California 90025
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` Telephone: (310) 826-7474
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` Facsimile: (310) 826-6991
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` mfenster@raklaw.com
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` rmirzaie@raklaw.com
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` Attorneys for Plaintiff FastVDO LLC
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