Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 1 of 57
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`AUSTIN DIVISION
`
`CASE NO. 1:20-cv-00765
`
`§§§§§§§§§
`
`BANDSPEED, LLC,
`
`Plaintiff,
`
`v.
`
`REALTEK SEMICONDUCTOR
`CORPORATION,
`
`Defendant.
`
`COMPLAINT
`
`Plaintiff Bandspeed, LLC (“Bandspeed”), by and through its attorneys, files its Complaint
`
`against defendant Realtek Semiconductor Corporation (“Defendant”), and hereby alleges as
`
`follows:
`
`I.
`
`NATURE OF ACTION
`
`1.
`
`This is a patent infringement action to end Defendant’s unauthorized and
`
`infringing manufacture, use, sale, offering for sale, and/or importation of methods and products
`
`incorporating Bandspeed’s patented inventions.
`
`2.
`
`Bandspeed is the owner of all right, title, and interest in and to:
`
`a.
`
`b.
`
`c.
`
`d.
`
`e.
`
`United States Patent No. 7,027,418 (“the ’418 Patent”), issued on April 11,
`2006;
`
`United States Patent No. 7,477,624 (“the ’624 Patent”), issued on January
`13, 2009;
`
`United States Patent No. 7,570,614 (“the ’614 patent”), issued on August 4,
`2009;
`
`United States Patent No. 7,903,608 (“the ’608 Patent”), issued on March 8,
`2011;
`
`United States Patent No. 8,542,643 (“the ’643 Patent”), issued on
`September 24, 2013;
`
`1
`
`

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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 2 of 57
`
`f.
`
`g.
`
`h.
`
`United States Patent No. 8,873,500 (“the ’500 Patent”), issued on October
`28, 2014;
`
`United States Patent No. 9,379,769 (“the ’769 Patent”), issued on June 28,
`2016;
`
`United States Patent No. 9,883,520 (“the ’520 Patent”), issued on January
`30, 2018.
`
`3.
`
`The ’418 Patent, ’624 Patent, ’614 Patent, ’608 Patent, ’643 Patent, ’500 Patent,
`
`’769 Patent, and ’520 Patent are, collectively, the “Patents.”
`
`4.
`
`Bandspeed has all substantial right and interest to the Patents, including all rights
`
`to recover for all past and future infringement thereof.
`
`5.
`
`Upon information and belief, Defendant has been and currently is infringing,
`
`contributing to the infringement of, and/or inducing the infringement of Bandspeed’s Patents, by,
`
`among other things, making, using, selling, importing, and/or offering for sale, within the territorial
`
`boundaries of the United States and the State of Texas, products that are covered by one or more
`
`claims of Bandspeed’s Patents and inducing such conduct by others.
`
`6.
`
`Defendant manufactures, provides, sells, offers for sale, imports, and/or distributes
`
`Infringing Products (as defined herein) and services; and/or induces others to make and use of its
`
`Infringing Products and services in an infringing manner; and/or contributes to the making and use
`
`of Infringing Products and services by others, including its customers, who directly infringe the
`
`Patents.
`
`II.
`
`THE PARTIES
`
`7.
`
`Plaintiff Bandspeed is a Texas limited liability company with its principal place of
`
`business located in Austin, Texas.
`
`
`
`2
`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 3 of 57
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`8.
`
`Upon information and belief, Defendant Realtek Semiconductor Corporation is a
`
`corporation organized and existing under the laws of Taiwan, with a place of business located at
`
`No. 2, Innovation Road II, Hsinchu Science Park, Hsinchu 300, Taiwan.
`
`9.
`
`Realtek Semiconductor Corporation may be served with process by serving the
`
`Texas Secretary of State, James E. Rudder Building, 1019 Brazos Street, Austin, Texas 78701, as
`
`its agent for service because it engages in business in Texas but has not designated or maintained
`
`a resident agent for service of process in Texas as required by statute. This action arises out of that
`
`business.
`
`10.
`
`Defendant manufactures and distributes electronics. Defendant, either itself and/or
`
`through the activities of its subsidiaries or agents, makes, uses, sells, offers for sale, and/or imports
`
`throughout the United States, including within this District, products, such as electronics,
`
`semiconductor devices, and integrated circuits, that infringe the Asserted Patents, defined below.
`
`III.
`
`JURISDICTION AND VENUE
`
`11.
`
`This is an action for patent infringement arising under the Patent Laws of the United
`
`States, in particular 35 U.S.C. §271, 281, 283, 284, and 285. This Court has jurisdiction over the
`
`subject matter of this action under 28 U.S.C. §1331 and 1338(a). Alternatively, this Court has
`
`jurisdiction over Defendant under Fed. R. Civ P. 4(k)(2) (“Federal Claim Outside State-Court
`
`Jurisdiction”).
`
`12.
`
`Upon information and belief, Defendant is subject to this Court’s personal
`
`jurisdiction pursuant to due process and/or the Texas Long Arm Statute, Tex. Civ. Prac. & Rem.
`
`Code § 17.042, because (1) Defendant has done and continues to do business in Texas and the
`
`Western District of Texas; (2) Defendant has committed and continues to commit acts of patent
`
`infringement in the State of Texas, including making, using, offering to sell, and/or selling accused
`
`products in Texas, and/or importing accused products into Texas, inducing others to commit acts
`
`
`
`3
`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 4 of 57
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`of patent infringement in Texas, and/or committing at least a portion of any other infringements
`
`alleged herein.
`
`13.
`
`Upon information and belief, Defendant has purposefully directed its activities
`
`toward the State of Texas and purposefully availed itself of the privileges of conducting activities
`
`in the State of Texas. Plaintiff’s causes of action for patent infringement arise out of and result
`
`from Defendant’s contact with the State of Texas.
`
`14.
`
`Upon information and belief, Defendant has solicited business in the State of Texas,
`
`transacted business within the State of Texas and/or attempted to derive financial benefit from
`
`residents of the State of Texas and the residents of this District, including benefits directly related
`
`to infringement of the Patents. Defendant has placed its products and/or services into the stream
`
`of commerce throughout the United States and has been actively engaged in transacting business
`
`in Texas and in the Western District of Texas.
`
`15.
`
`Upon information and belief, Defendant, directly and/or through subsidiaries or
`
`intermediaries (including distributors, retailers, resellers and others), makes, imports, ships,
`
`distributes, offers for sale, sells, uses, and advertises its products and/or services in the United
`
`States, the State of Texas, and the Western District of Texas.
`
`16.
`
`Upon information and belief, Defendant has purposefully and voluntarily placed
`
`infringing Bluetooth products into the stream of commerce by shipping Infringing Products
`
`through established distribution channels into the State of Texas, knowing or expecting that the
`
`Infringing Products would be shipped into Texas, and/or knowing or expecting that these
`
`Infringing Products would be incorporated into other products that would be shipped into Texas
`
`and would be purchased and used by customers in the State of Texas and the Western District of
`
`Texas.
`
`
`
`4
`
`

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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 5 of 57
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`17.
`
`Upon information and belief, Defendant interacts with subsidiaries, distributors,
`
`resellers and/or customers who sell the Infringing Products into Texas, knowing or expecting that
`
`these subsidiaries, distributors, resellers and/or customers will then sell the Infringing Products
`
`into the State of Texas, either directly or through intermediaries.
`
`18.
`
`The Court’s exercise of personal jurisdiction over Defendant would not offend
`
`traditional notions of fair play and substantial justice because Defendant has established minimum
`
`contacts with the State of Texas.
`
`19.
`
`Venue in the Western District of Texas is proper pursuant to 28 U.S.C. §§ 139l
`
`(c)(3) which provides that “a defendant not resident in the United States may be sued in any judicial
`
`district, and the joinder of such a defendant shall be disregarded in determining where the action
`
`may be brought with respect to other defendants.”
`
`20.
`
`This District is familiar with the technology of the Patents and has presided over
`
`several lawsuits involving one or more of the Patents.
`
`IV. NOTICE
`
`21.
`
`On July 2, 2018, Bandspeed sent a letter to Defendant notifying Defendant of its
`
`Patents and the nature of Defendant’s infringing activities (the “Notice Letter”). Defendant refused
`
`service of this letter.
`
`22.
`
`On October 10, 2019, after acquiring pertinent email addresses of Defendant
`
`employees, Bandspeed sent an email to Defendant notifying Defendant of Defendant’s infringing
`
`activities (the “Notice Email”). The Notice Email provided Defendant with detailed allegations
`
`about its infringing conduct including claim charts. Since July 2, 2018, and no later than October
`
`10, 2019, Defendant actually knew of, or was willfully blind to, the existence of the Patents and
`
`the infringing nature of Defendant’s activities.
`
`
`
`5
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`

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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 6 of 57
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`23.
`
`Additionally, Defendant had knowledge of the Patents and the infringing conduct
`
`as early as the date when Bandspeed effected service of the Complaint.
`
`V.
`
` PLAINTIFF’S PATENTS
`
`24.
`
`The claims of the Patents describe inventive features and combinations relating to
`
`adaptive frequency hopping and the ability to avoid interference over communications channels
`
`that improved upon prior art systems and methods. In other words, the claims of the Patents
`
`generally describe novel techniques “for selecting sets of communications channels based on
`
`channel performance.” ’418 Patent at 4:49-50.
`
`25.
`
`The Patents improve upon frequency hopping communications systems that existed
`
`at the time of the invention. One problem with frequency hopping communications systems is that
`
`coexistence problems arise between the frequency hopping communications system and non-
`
`frequency hopping communications systems that operate in the same frequency band. While the
`
`frequency hopping communications system hops over the entire frequency band, the non-
`
`frequency hopping communications systems occupy separate parts of the frequency band.
`
`26.
`
`The claims of the Patents solve the coexistence problem by using a method or
`
`system not conventional at the time of the invention: adaptive frequency hopping. As described in
`
`the Patents, a set of channels is used for communication between devices according to a frequency
`
`hopping (“FH”) protocol. Another set of communications channels is selected in a similar manner
`
`when a specified criterion is satisfied after expiration of a specified length of time, when the
`
`performance of at least one of the channels in the set of channels satisfies another performance
`
`criterion, or when a specified number of the set of channels satisfies yet another performance
`
`criterion. See, e.g., ’608 Patent at 4:64-5:6. “For example, the selection criteria may be to select
`
`the good channels but not the bad channels.” Id. at 6:62-64. The claimed system first selects an
`
`initial set of channels, and then periodically selects sets of channels based on later performance of
`
`
`
`6
`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 7 of 57
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`the communications channels. Id. at 6:28-30; 4:22-24. The claimed system classifies a
`
`communication channel based on channel performances and one or more classification criteria. Id.
`
`at 15:8-10. “For example, a channel may be classified as ‘good’ or ‘bad’ based on the results of
`
`the channel performance testing by applying one or more performance measurements.” Id. at
`
`15:10-14.
`
`27.
`
`The Patents teach a method or device using a frequency hopping protocol that
`
`“transmits data on one channel, hops to the next channel in the hopping sequence to transmit more
`
`data and continues by transmitting data on subsequent channels in the hopping sequence.” See,
`
`e.g., ’500 Patent at 2:34-38. “When the FH communications system hops over part of the frequency
`
`band occupied by an NFH [non-frequency hopping] communications system, there may be
`
`interference between the systems.” Id. at 3:33-36. “Interference results in data transmission errors,
`
`such as an increase in the bit error rate (BER) or the loss of data packets, resulting in reduced
`
`transmission quality and performance and the need to retransmit the data.” Id. at 3:58-61. The
`
`invention avoids these problems by testing the plurality of communications channels and using a
`
`subset of channels that have been identified as good after testing for communications between
`
`participants using an adapted hopping sequence. Id. at 12:34-41 and 18:8-12.
`
`VI. DEFENDANT’S ACTS
`
`28.
`
`Defendant manufactures, provides, sells, uses, imports, supplies, offers for sale,
`
`and/or distributes Infringing Products, such as integrated circuits, or a set of integrated circuits for
`
`wireless communications devices, that use, practice, and/or comply with the Bluetooth Core
`
`Specification Version 2.0+EDR or higher, and other products that operate in a reasonably similar
`
`manner (“Infringing Bluetooth Classic Products”).
`
`29.
`
`Defendant also manufactures, provides, sells, uses, imports, supplies, offers for
`
`sale, and/or distributes Infringing Products, such as integrated circuits, or a set of integrated circuits
`
`
`
`7
`
`

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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 8 of 57
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`for wireless communications devices, that use, practice and/or comply with the Bluetooth low
`
`energy protocol as described in Version 4.0 and any later version of the Bluetooth Core
`
`Specification, and other products that operate in a reasonably similar manner (“Infringing
`
`Bluetooth LE Products”). The Infringing Bluetooth LE Products infringe the ’608 Patent, ’643
`
`Patent, ’500 Patent, ’769 Patent and ’520 Patent (“LE Patents”).
`
`30.
`
`The Infringing Bluetooth Classic Products and the Infringing Bluetooth LE
`
`Products are collectively referred to as the “Infringing Products.”
`
`31.
`
`Through its actions, Defendant has infringed the Patents and actively induced
`
`others to infringe and contributed to the infringement by others of the Patents, throughout the
`
`United States and in the State of Texas.
`
`32.
`
`Upon information and belief, Defendant takes steps to test the Infringing Products
`
`to ensure compliance with the relevant Bluetooth Core Specification and to qualify the Infringing
`
`Products for Bluetooth certification.
`
`33.
`
`Upon information and belief, Defendant certifies to the Bluetooth Special Interest
`
`Group (“Bluetooth SIG”) that Infringing Bluetooth Classic Products are compliant with the
`
`Bluetooth Core Specification Version 2.0+EDR or higher.
`
`34.
`
`Upon information and belief, Defendant certifies to the Bluetooth SIG that
`
`Infringing Bluetooth LE Products are compliant with the Bluetooth Core Specification Version 4.0
`
`or higher.
`
`35.
`
`Using established channels and chains of distribution, Defendant provides
`
`Infringing Products to be used as components in a variety of end-products that are made, used,
`
`sold, and/or imported into the United States. Defendant knew, should have known, expected, or
`
`should have expected that by purposefully placing Infringing Products into the stream of
`
`
`
`8
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`

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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 9 of 57
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`commerce those Infringing Products would be imported into, sold, and used in the United States
`
`and the State of Texas.
`
`36.
`
`Upon information and belief, Defendant applies to the United States Federal
`
`Communications Commission (FCC) for approvals needed to sell Infringing Products in the
`
`United States, obtaining FCC product IDs for the Infringing Products and submitting documents
`
`that (i) identify Defendant as the manufacturer of Infringing Products and (ii) provide instructions
`
`for installing and using the Infringing Products in an infringing manner. According to the FCC,
`
`“[a]n FCC ID is the product ID assigned by the FCC to identify wireless products in the market.”
`
`https://fccid.io/TX2-RTL8822CE.
`
`37.
`
`Upon information and belief, Defendant provides software and software updates
`
`for Infringing Products used as components in end-products that are made, used, sold, and/or
`
`imported into the United States. Defendant knew, should have known, expected, or should have
`
`expected that by providing software and software updates for Infringing Products to its end-
`
`product customers that such software would be downloaded and used by customers in the United
`
`States, the State of Texas, and within this District to install and use the Infringing Products in an
`
`infringing manner.
`
`38.
`
`For example, Defendant provides Infringing Products to be used as components in
`
`a variety of end-products sold, used, and/or imported in the United States and the State of Texas
`
`by Asustek Computer Inc. (“Asustek”).
`
`39.
`
`Asustek sells, uses, and/or imports in the United States and the State of Texas
`
`numerous end-products that use Defendant’s Infringing Products as components. For example,
`
`the Asustek ASUS AMD Ryzen 7 TUF Gaming Laptop, model no. FA506 (“FA506”) incorporates
`
`
`
`9
`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 10 of 57
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`the Realtek RTL8822CE Bluetooth chip. The Realtek RTL8822CE infringes the Bandspeed
`
`Patents.
`
`40.
`
`Upon information and belief, Asustek certified to the Bluetooth SIG that the
`
`Asustek FA506 incorporates one of the following chipsets: the Realtek Bluetooth 5 Dual Mode
`
`Solution for RTL87XX Module series, the Realtek Bluetooth 5 Dual Mode Solution for RTL88XX
`
`Module series, or the Realtek RTL8723D chipset series.
`
`41.
`
`Upon information and belief, Defendant certified to the Bluetooth SIG that the
`
`RTL88XX chip series is compliant with Bluetooth Core Specification 5.0.
`
`42.
`
`Realtek markets the Bluetooth capabilities of the Realtek RTL8822CE and
`
`encourages and instructs users of the Realtek RTL8822CE to use the infringing Realtek
`
`RTL8822CE in an infringing manner.
`
`
`
`10
`
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`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 11 of 57
`
`
`RTL8822CE User Manual, page 18.
`
`
`43.
`
`Upon information and belief, Defendant submitted the Realtek RTL8822CE to the
`
`United States FCC for approval to sell the Realtek RTL8822CE in the United States, including the
`
`State of Texas. The FCC assigned the following product ID to the Realtek RTL8822CE: FCC ID
`
`TX2-RTL8822CE.
`
`44.
`
`The FCC Test Reports for the Realtek RTL8822CE provided to the FCC by
`
`Defendant identifies Defendant as the manufacturer of the product. See https://fccid.io/TX2-
`
`RTL8822CE/Test-Report/Test-Report-DTS-BT-LE-rev-4058185. See also https://fccid.io/TX2-
`
`RTL8822CE/Test-Report/Test-Report-DTS-BT-EDR-rev-4058184.
`
`45.
`
`The user manual for the Realtek RTL8822CE provided to the FCC by Defendant
`
`includes instructions for installation and use of the product in an infringing manner, including
`
`instructions to Defendant’s customers for installation of hardware, software, and drivers for the
`
`product. https://fccid.io/TX2-RTL8822CE/Users-Manual/Users-Manual-4058100.
`
`46.
`
`The FCC provided Realtek with a Grant of Equipment Authorization for the
`
`RL8822CE, authorizing “operation at approved frequencies and sale within the USA.”
`
`https://fccid.io/TX2-RTL8822CE.
`
`
`
`11
`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 12 of 57
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`
`
`
`https://fccid.io/TX2-RTL8822CE.
`
`
`47.
`
`Upon information and belief, Best Buy, a large retailer with locations throughout
`
`the United States, including in the State of in Texas and in this District, currently sells and has sold
`
`the Asustek FA506 containing the infringing Realtek RTL8822CE to customers in the United
`
`States, to customers in the State of Texas, and to customers within this District.
`
`
`
`12
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`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 13 of 57
`Case 1:20-cv-00765—LY Document 1
`
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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 14 of 57
`
`48.
`
`The Asustek website allows users of the Realtek RTL8822CE to download drivers
`
`
`
`for the product.
`
`
`https://www.asus.com/Laptops/ASUS-TUF-Gaming-A15/HelpDesk_Download/.
`
`
`
`
`
`
`14
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`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 15 of 57
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`49.
`
`Upon information and belief, Defendant provided driver software for the Realtek
`
`RTL8822CE to Asustek so that customers, including customers located in the United States, in the
`
`State of Texas and in this District, could download the driver software and use the Realtek
`
`RTL8822CE in an infringing manner.
`
`50.
`
`As another example, Defendant also provides Infringing Products to be used as
`
`components in a variety of end-products sold, used, and/or imported in the United States and the
`
`State of Texas by PEAG, LLC d/b/a JLab Audio (“JLab”).
`
`51.
`
`JLab sells, uses, and/or imports in the United States and the State of Texas
`
`numerous end-products that use Defendants’ Infringing Products as components. For example,
`
`the JLab GO Air True Wireless Earbuds (“GO Air Earbuds”) incorporate the Realtek RTL8763BFJ
`
`Bluetooth chip. The Realtek RTL8763BFJ chip infringes the Bandspeed Patents.
`
`52.
`
`Upon information and belief, JLab certified to the Bluetooth SIG that the JLab GO
`
`Air Earbuds incorporate one of the following chipsets: the RTL8753 or RTL8763 series BT Audio
`
`solution.
`
`53.
`
`Upon information and belief, Defendant certified to the Bluetooth SIG that the
`
`RTL8753 and RTL8763 series BT Audio solutions are compliant with Bluetooth Core
`
`Specification 5.0.
`
`54.
`
`Realtek markets the Bluetooth capabilities of the Realtek RTL8763B series by
`
`describing the series as a “single-chip Bluetooth ROM audio solutions for mono (RTL8763BM)
`
`and stereo (RTL8763BF/BFR, RTL8763BS, RTL8763BA) applications,” as “Bluetooth 5
`
`specification compliant,” and supportive of Bluetooth Classic (BDR/EDR) and Bluetooth Low
`
`Energy (BLE). RTL8763B Series User Manual, pgs. 1-2.
`
`
`
`15
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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 16 of 57
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`55.
`
`Upon information and belief, Realtek encourages and instructs users of the Realtek
`
`RTL8763B series to use the infringing Realtek RTL8763B series in an infringing manner.
`
`56.
`
`Upon information and belief, Defendant submitted the RTL8763BA to the United
`
`States FCC for approval to sell the Realtek RTL8763BA in the United States, including the State
`
`of Texas. The FCC assigned the following product ID to the Realtek RTL8763BA: FCC ID TX2-
`
`RTL8763BA.
`
`57.
`
`The FCC Test Report for the Realtek RTL8763BA provided to the FCC by
`
`Defendant identifies Defendant as the manufacturer of the product. https://fccid.io/TX2-
`
`RTL8763BA/Test-Report/Test-Report-3804100.
`
`58.
`
`The user manual for the Realtek RTL8763B series provided to the FCC by
`
`Defendant includes instructions for installation and use of the product in an infringing manner.
`
`https://fccid.io/TX2-RTL8763BA/Users-Manual/User-Manual-3804103.
`
`59.
`
`The FCC provided Realtek with a Grant of Equipment Authorization for the
`
`RL8822CE, authorizing “operation at approved frequencies and sale within the USA.”
`
`https://fccid.io/TX2-RTL8763BA.
`
`
`
`16
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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 17 of 57
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`
`
`https://fccid.io/TX2-RTL8763BA.
`
`
`60.
`
`Upon information and belief, Target, a large retailer with locations throughout the
`
`United States, including in the State of in Texas and in this District, sells and has sold the JLab
`
`GO AIR EARBUDS containing the infringing Realtek RTL8763BFJ chip to customers in the
`
`United States, to customers in the State of Texas, and to customers within this District.
`
`
`
`17
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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 18 of 57
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`
`
`61.
`
`Defendant knew, should have known, expected, or should have expected that by
`
`purposefully selling infringing components to JLab that those Infringing Products would be
`
`imported into and sold through established distribution channels in the United States to customers
`
`
`
`in this District.
`
`62.
`
`Through its actions, Defendant has infringed the Patents and actively induced
`
`others to infringe and contributed to the infringement by others of the Patents, throughout the
`
`United States.
`
`63.
`
`Upon information and belief, certain of Defendant’s customers request, require,
`
`and/or engage features and capabilities, including adaptive frequency hopping, that comply with
`
`the Bluetooth Core Specification. Defendant markets and advertises one or more of its Infringing
`
`Products’ compliance with the Bluetooth Core Specification regarding such features and
`
`capabilities.
`
`64.
`
`Upon information and belief, Defendant’s customers follow the instructions
`
`provided by Defendant to activate the Bluetooth functionality in the Infringing Products, and
`
`
`
`18
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`

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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 19 of 57
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`therefore Defendant intends for its customers to use the Infringing Products in a manner that
`
`infringes the Patents.
`
`65.
`
`Defendant directs and controls its customers to use Bluetooth functionality in an
`
`infringing manner by providing instructions to set up, engage, and use infringing Bluetooth
`
`functionality in the Infringing Products.
`
`66.
`
`Defendant induces its customers to infringe and contributes to such infringement
`
`by instructing or specifying that its customers engage Bluetooth functionality such that the
`
`Infringing Products operate in an infringing manner. Defendant specifies that the Infringing
`
`Products operate in an infringing manner by providing source code or firmware on the integrated
`
`circuit that causes the Infringing Products to operate in an infringing manner, and/or provides
`
`SDKs and driver software that causes Infringing Products to operate in an infringing manner.
`
`67.
`
`The normal, intended operation of the Infringing Bluetooth Classic Products is to
`
`provide certain capabilities and features, including adaptive frequency hopping, in compliance
`
`with Version 2.0 or later of the Bluetooth Core Specification, that infringe the Patents. The
`
`Infringing Bluetooth Classic Products therefore have no substantial non-infringing uses.
`
`68.
`
`The normal, intended operation of the Infringing Bluetooth LE Products is to
`
`provide certain capabilities and features that infringe the LE Patents, including Bluetooth Low
`
`Energy capabilities and features in compliance with Version 4.0 or later of the Bluetooth Core
`
`Specification. The Infringing Bluetooth LE Products have no substantial non-infringing uses.
`
`69.
`
`Therefore, Defendant induces its customers to directly infringe or contributes to the
`
`direct infringement of its customers.
`
`70.
`
`Bandspeed has been and will continue to suffer damages as a result of Defendant’s
`
`infringing acts.
`
`
`
`19
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`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 20 of 57
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`COUNT ONE
`
`PATENT INFRINGEMENT – U.S. PATENT NO. 7,027,418
`(AGAINST INFRINGING BLUETOOTH CLASSIC PRODUCTS)
`
`Bandspeed realleges and incorporates preceding paragraphs herein.
`
`Direct Infringement (35 U.S.C. § 271(a))
`
`Upon information and belief, Defendant has directly infringed, and continues to
`
`71.
`
`A.
`
`72.
`
`directly infringe, individually and/or jointly with others, one or more claims of the ’418 Patent by,
`
`among other things, making, using, offering for sale, selling, and/or importing Infringing Bluetooth
`
`Classic Products.
`
`73.
`
`For example, claim 5 of the ‘418 Patent states:
`
`1. A method for selecting communications channels for a communications system, the method
`comprising the computer-implemented steps of:
`
`selecting, based upon performance of a plurality of communications channels at a first time
`and channel selection criteria, a first set of two or more communications channels from the
`plurality of communications channels;
`
`selecting, based upon performance of the plurality of communications channels at a second
`time that is later than the first time and the channel selection criteria, a second set of two
`or more communications channels from the plurality of communications channels;
`
`wherein the communications system is a frequency hopping communications system and
`the plurality of communications channels correspond to a set of frequencies to be used
`based on a hopping sequence according to a frequency hopping protocol; and
`
`wherein at each hop in the hopping sequence, only one communications channel is used
`for communications between a pair of participants.
`
`5. The method as recited in claim 1, further comprising the steps of:
`
`generating first channel identification data that identifies the first set of two or more
`communications channels;
`
`transmitting the first channel identification data to one or more participants in the
`communications system over one communications channel of the plurality of
`communications channels based on the hopping sequence according to the frequency
`hopping protocol;
`
`
`
`20
`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 21 of 57
`
`generating second channel identification data that identifies the second set of two or more
`communications channels; and
`
`transmitting the second channel identification data to one or more participants in the
`communications system over one communications channel of the plurality of
`communications channels based on the hopping sequence according to the frequency
`hopping protocol.
`
`74.
`
`Defendant’s Infringing Bluetooth Classic Products meet each and every claim
`
`limitation of claim 5 of the ‘418 Patent, as well as other claims of the ‘418 Patent.
`
`75.
`
`Defendant jointly infringes the ’418 Patent to the extent that the acts necessary to
`
`give rise to liability for direct infringement are shared between Defendant and a third party but can
`
`be legally attributed to Defendant. Defendant conditions participation in an activity or receipt of a
`
`benefit upon performance of a step or steps of a patented method and establishes the manner or
`
`timing of that performance.
`
`76.
`
`Specifically, Defendant provides third-parties, including customers and/or end-
`
`users, with Infringing Bluetooth Classic Products. Defendant directs and controls its customers to
`
`use Bluetooth functionality in an infringing manner by providing user manuals containing
`
`instructions about how to activate, pair, set up and engage infringing Bluetooth functionality in the
`
`Infringing Bluetooth Classic Products. When an Infringing Bluetooth Classic Product is engaged
`
`to use Bluetooth functionality in the manner designed and established by Defendant, the
`
`performance of the infringing functionality occurs. Defendant dictates when and how infringement
`
`occurs by virtue of providing software and hardware in the Infringing Bluetooth Classic Products
`
`that dictate when and how the performance of the infringing functionality occurs.
`
`B.
`
`77.
`
`Indirect Infringement (Inducement - 35 U.S.C. § 271(b))
`
`Defendant has indirectly infringed and continues to indirectly infringe, the ’418
`
`Patent by inducing direct infringement of the ’418 Patent by third parties, including Defendant’s
`
`customers, including without limitation manufacturers, resellers, and/or end users of the products
`
`
`
`21
`
`

`

`Case 1:20-cv-00765-LY Document 1 Filed 07/20/20 Page 22 of 57
`
`that contain Infringing Bluetooth Classic Products in this District and elsewhere in the United
`
`States.
`
`78.
`
`Upon information and belief, despite having knowledge of the ’418 Patent,
`
`Defendant has specifically intended for persons who acquire and use the Infringing Bluetooth
`
`Classic Products, including without limitation end-users of the Infringing Bluetooth Classic
`
`Products, to acquire and use such devices in such a way that infringes one or more claims of the
`
`’418 Patent.
`
`79.
`
`80.
`
`Defendant knew or should have known that its actions were inducing infringement.
`
`Defendant actually knew of, or was wi