Case 6:20-cv-00428-ADA Document 1 Filed 05/26/20 Page 1 of 64
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
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`DAEDALUS BLUE, LLC,
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`Case No. ________________
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`JURY TRIAL DEMANDED
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`v.
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`ORACLE CORPORATION AND ORACLE
`AMERICA, INC.,
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`Plaintiff,
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`Defendants.
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`DAEDALUS BLUE, LLC’S COMPLAINT FOR PATENT INFRINGEMENT
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`TO THE HONORABLE JUDGE OF SAID COURT:
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`Plaintiff, Daedalus Blue, LLC for its Complaint against Defendants Oracle Corporation
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`and Oracle, America, Inc. (collectively, “Oracle”), hereby alleges as follows:
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`INTRODUCTION
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`1.
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`The novel inventions disclosed in the Asserted Patents in this matter were
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`invented by International Business Machines Corporation (“IBM”). IBM pioneered the field of
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`shared resources and cloud computing. Every year, IBM spends billions of dollars on research
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`and development to invent, market, and sell new technology, and IBM obtains patents on many
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`of the novel inventions that come out of that work, including the Asserted Patents. The five
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`patents asserted in this case are the result of the work from 15 different IBM researchers,
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`spanning a period of nearly a decade.
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`2.
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`Over the years, IBM has licensed its inventions—including those claimed in the
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`Asserted Patents—to many companies, including Amazon Web Services.
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`THE PARTIES
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`3.
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`Daedalus Blue, LLC (“Daedalus”) is the current owner and assignee of the
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`Asserted Patents.
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`4.
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`Plaintiff Daedalus is a Delaware limited liability company with its principal place
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`of business located at 51 Pondfield Road, Suite 3, Bronxville, NY 10708.
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`5.
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`Defendant Oracle Corporation is a Delaware Corporation with a principal place of
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`business at 500 Oracle Parkway Redwood City, CA 94065. Oracle Corporation also maintains
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`regional offices in this District, located at 2300 Oracle Way, Austin, Texas, at 5300 Riata Park
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`Court, Building B, Austin, Texas, and at 613 NW Loop 410 San Antonio, Texas.
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`6.
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`Defendant Oracle America, Inc. (“Oracle America”) is a Delaware Corporation
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`with a principal place of business at 500 Oracle Parkway Redwood City, CA 94065. Oracle
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`America also maintains regional offices in this district, located 613 NW Loop 410 San Antonio,
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`Texas.
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`7.
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`Oracle Corporation and Oracle America conduct business in Texas and in the
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`Western District of Texas, as set forth below.
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`JURISIDICTION AND VENUE
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`8.
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`This is an action arising under the patent laws of the United States, 35 U.S.C.
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`§ 101, et seq. Accordingly, this Court has subject matter jurisdiction pursuant to 28 U.S.C.
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`§§ 1331 and 1338(a).
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`9.
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`Defendants Oracle are subject to this Court’s personal jurisdiction in accordance
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`with due process and/or the Texas Long Arm Statute because, in part, Oracle “[r]ecruits Texas
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`residents, directly or through an intermediary located in this state, for employment inside or
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`outside this state.” See Tex. Civ. Prac. & Rem. Code § 17.042.
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`10.
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`This Court also has personal jurisdiction over Defendants Oracle because they
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`committed and continue to commit acts of direct and/or indirect infringement in this judicial
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`district in violation of at least 35 U.S.C. §§ 271(a) and (b). In particular, on information and
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`belief, Defendants have made, used, offered to sell and sold licenses for, or access to, the
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`accused products in this judicial district, and have induced others to use the accused products in
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`this judicial district.
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`11.
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`Defendants Oracle are subject to the Court’s personal jurisdiction, in part, because
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`they regularly conduct and solicit business, or otherwise engage in other persistent courses of
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`conduct in this district, and/or derive substantial revenue from the sale and distribution of
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`infringing goods and services provided to individuals and businesses in this district.
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`12.
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`This Court has personal jurisdiction over Defendants Oracle because, inter alia,
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`Defendants (1) have substantial, continuous, and systematic contacts with this State and this
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`judicial district; (2) own, manage, and operate facilities in this State and this judicial district;
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`(3) enjoy substantial income from their operations and sales in this State and this judicial district;
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`(4) employ Texas residents in this State and this judicial district; and (5) solicit business and
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`market products, systems and/or services in this State and judicial district including, without
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`limitation, those related to the infringing accused products.
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`13.
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`Venue is proper in this District pursuant to at least 28 U.S.C. §1319(b)-(c) and
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`§1400(b), at least because Defendants Oracle, either directly or through their agents, have
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`committed acts within this judicial district giving rise to this action, and continue to conduct
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`business in this district, and/or have committed acts of patent infringement within this District
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`giving rise to this action.
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`FACTUAL ALLEGATIONS
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`Daedalus Patents
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`14.
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`The Asserted Patents in this case relate to groundbreaking improvements to
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`computer network functionality and computer security. The techniques described in the Asserted
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`Patents relate to computer networks and have particular application in the cloud-based
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`computing environments as will be further described below.
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`15.
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`On July 19, 2005, the U.S. Patent and Trademark Office duly and lawfully issued
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`United States Patent No. 6,920,494 (“the ’494 Patent”), entitled “Storage Area Network Methods
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`and Apparatus with Virtual SAN Recognition.” A true and correct copy of the ’494 Patent is
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`attached hereto as Exhibit 1.
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`16.
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`Daedalus is the owner and assignee of all right, title, and interest in and to the
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`’494 Patent, including the right to assert all causes of action arising under said patent and the
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`right to any remedies for infringement of it.
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`17.
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`The ’494 Patent describes, among other things, novel systems and methods that
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`improve the monitoring and discovery of network components and their topology, thereby
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`allowing users to more efficiently monitor the network and components. These inventive
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`technological improvements solved then-existing problems in the field of storage area networks
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`(SANs) and methods of operating SANs. For example, as described in the ’494 Patent, with the
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`rise of the personal computer and workstations in the 1980's, demand by business users led to the
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`development of interconnection mechanisms that permitted otherwise independent computers to
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`access data on another computer's storage devices. A prevalent business network that emerged
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`was/is the local area network, typically comprising “client” computers (e.g., individual PCs or
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`workstations) connected by a network to a “server” computer. In a storage area network, many
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`storage devices are often placed on a network or switching fabric that can be accessed by several
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`servers (such as file servers and web servers) which, in turn, service respective groups of clients.
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`Sometimes even individual PCs or workstations are enabled for direct access of the storage
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`devices. (See Ex. 1. at 1:24-54). The complexity engendered by having storage-area networks
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`of shared-access storage components being used by multiple servers spread across separate local-
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`area networks created system management problems that were addressed by the invention of the
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`’494 Patent. (See, e.g., id. at 1:55-2:26).
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`18.
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`Prior to the invention of the ’494 Patent, a drawback in storage area networks
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`arose in managing the proliferation of hosts and storage devices. For example, a storage area
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`network (SAN) has one or more host digital data processors which are coupled to one or more
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`storage devices by an interconnect, for example, a fibre channel-based fabric. Hosts are typically
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`web or file servers for client computers but may be any digital data device that accesses and/or
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`stores information on the storage devices. In managing the SAN connections, solutions existing
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`before the ’494 invention focused on setting switches or switch-like interfaces on the network or
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`interconnect fabric between the hosts and storage device, electrically “blocking” certain hosts
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`and certain storage devices. A problem with these solutions is that they permitted only zoning or
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`switch-like control. Another problem is that, by their very nature, these solutions tended to be
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`provider specific. (See Ex. 1, at 1:55-63).
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`19.
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`The ’494 Patent overcomes these drawbacks and improves the functioning of a
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`computer network by improving storage area networks (SANs) and methods for operating SANs.
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`The invention of the ’494 Patent provides for provisioning and discovery of “virtual”
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`connections and regions within a SAN, that are not dependent on the limited zoning capabilities
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`and connectivity of the storage fabric switch hardware. (See, e.g., Ex. 1, at 6:58-7:22, 44:25-
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`45:25, Figs. 23, 24). An exemplary depiction of a virtual SAN that can be detected by host
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`adapters and disambiguated by a SAN manager is shown in Fig. 23 of the patent:
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`This “virtual SAN” discovery and management provided a novel and unconventional solution
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`over existing network management solutions at the time. For example, in one aspect of the
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`invention, scanners are utilized for each virtualized region (e.g., defined independent of physical
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`connectivity by the storage resources seen and accessible by a host or group of hosts) of a SAN
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`to collect information regarding the components and their interconnectivity; such scanners are
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`coupled to a manager that uses that information to determine the topology of the SAN. A
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`scanner may run on an agent within a host. The exemplary arrangement is shown in Fig. 1 of the
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`patent:
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`20.
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`The patent describes, for example, that a scanner may be an executable that
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`interacts with the hosts by performing system calls and I/O control calls to gather information.
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`(Ex. 1, at 39:4-7). The manager may then disambiguate information from the regions and
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`discern the topology of the portion of the SAN spanned by the regions. As illustrated in Fig. 25
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`of the patent, the SAN manager may store the internal model store of the SAN topology, and
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`such store may contain objects representing the components of the SAN (e.g., hosts, storage
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`devices, interconnect), their attributes and the interrelationships therebetween. The objects may
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`be arranged hierarchically or otherwise. (Id., at 46:61-47:29). They may describe a “collection
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`of ports that may constitute a virtual SAN.” (Id., at 45:25-46:60). For example:
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`21.
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`Further, Figure 26 of the patent shows an exemplary hierarchical display that may
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`be presented using the models depicted in Figure 25, and which may also identify information
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`about the status of components or history data:
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`22.
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`The novel features of the invention are recited in the claims. For example, Claim
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`1 of the ’494 Patent recites:
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`A storage area network (SAN) comprising
`one or more regions forming at least a portion of the SAN, each region
`having one or more components, the components including one or more
`digital data processors and one or more storage devices;
`one or more scanners that collect, for each region, information regarding the
`components and their interconnectivity;
`a manager, coupled to the one or more scanners, that responds to the
`collected information to determine a topology of a portion of the SAN
`spanned by the regions.
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`(Ex. 1, at 84:16-27). Claim 1 of the ’494 Patent describes claim elements, individually or as an
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`ordered combination, that were non routine and unconventional at the time of the invention in
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`2001 and was an improvement over prior art. For example, it provided a way (not previously
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`available) to collect information about network components and their interconnectivity in order
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`to monitor and discover network components and their topology. For example, Claim 1
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`discloses the unconventional step that one or more scanners are maintained to collect information
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`on components for different regions of the SAN, and that the manager is coupled to the scanners
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`for the different regions and responds to the collected information to determine a portion of the
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`SAN topology that spans the regions. As described above and in the disclosures of the ’494
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`Patent, the claimed regions may be inventively and unconventionally virtualized from the storage
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`network fabric hardware, and constitute “virtual SANs.” This virtualization functionally
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`improved the discovery and management of storage network components in the complex
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`environment of new cloud-based and networked computing systems.
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`23.
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`On February 13, 2007, the U.S. Patent and Trademark Office duly and lawfully
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`issued United States Patent No. 7,177,886 (“the ’886 Patent”), entitled “Apparatus and Method
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`for Coordinating Logical Data Replication with Highly Available Data Replication.” A true and
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`correct copy of the ’886 Patent is attached hereto as Exhibit 2.
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`24.
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`Daedalus is the owner and assignee of all right, title, and interest in and to the
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`’886 Patent, including the right to assert all causes of action arising under said patent and the
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`right to any remedies for infringement of it.
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`25.
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`The ’886 Patent describes, among other things, a novel apparatus configuration
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`that improves data storage techniques that provides for faster, more reliable backup of data files
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`to remote servers, which ensures against data loss and system failure. These inventive
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`technological improvements solved then-existing problems in the field of data replication for
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`databases. For example, as described in the ’886 Patent, relational database systems distribute
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`data across a plurality of computers, servers, or other platforms. Distributed database systems
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`typically include a central database and various remote servers that are synchronized with the
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`central database. (Ex. 2, at 1:34-36). The central database server provides a repository for all
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`database contents, and its contents are preferably highly robust against server failures. (Id., at
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`1:47-49). Remote databases which store some or all information contained in the central
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`database are typically maintained by synchronous or asynchronous data replication. In
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`synchronous replication, a transaction updates data on each target remote database before
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`completing the transaction.
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`26.
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`However, as described in the ’886 Patent, traditional synchronous replication
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`methods introduce substantial delays into data processing, because the replication occurs as part
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`of the user transaction. This increases the cost of the transaction, making it too expensive.
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`Moreover, a problem at a single database can result in an overall system failure. Hence,
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`synchronous replication is usually not preferred, except in transactions which require a very high
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`degree of robustness against database failure. (Id., at 2:9-24).
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`27.
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`As also described in the ’886 Patent, known methods of asynchronous replication
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`were preferred for most data distribution applications. In asynchronous replication, transaction
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`logs of the various database servers are monitored for new transactions. When a new transaction
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`is identified, a replicator rebuilds the transaction from the log record and distributes it to other
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`database instances, each of which apply and commit the transaction at that instance. Such
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`replicators have a high degree of functionality, and readily support multiple targets, bi-
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`directional transmission of replicated data, replication to dissimilar machine types, and the like.
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`However, asynchronous replicators have a substantial latency between database updates,
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`sometimes up to a few hours for full update propagation across the distributed database system,
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`which can lead to database inconsistencies in the event of a failure of the central database server.
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`Hence, asynchronous replicators are generally not considered to be fail-safe solutions for high
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`data availability. (Ex. 2, at 25-41).
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`28.
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`The ’886 Patent overcomes these drawbacks and improves the functioning of a
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`computer network, including computer database replication by providing fail-safe data
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`replication in a distributed database system. This invention provides for reliable fail-safe
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`recovery and retains the high degree of functionality of asynchronous replication. (Ex. 2, at
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`2:42-46). The ’886 Patent describes that, in accordance with one aspect of the invention, a
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`database apparatus includes a critical database server having a primary server supporting a
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`primary database instance and a secondary server supporting a secondary database instance that
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`mirrors the primary database instance. Fig. 1 of the patent shows an exemplary arrangement
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`where, “[t]he central database server 12 includes a primary server 20 and a secondary
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`server 22 that mirrors the primary server 20.” (Id. at 4:48-50).
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`The secondary server generates an acknowledgment signal (34) indicating that a selected critical
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`database transaction is mirrored at the secondary database instance. A plurality of other servers
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`(14, 16, 18) each support a database. A data replicator communicates with the critical database
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`server and one or more of the other servers to replicate the selected critical database transaction
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`on at least one of said plurality of other servers responsive to the acknowledgment signal. (Id. at
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`2:56-67). This configuration of primary and secondary database resources, along with remotely
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`provisioned database backups, was a novel and unconventional system setup that facilitated the
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`improved reliability and failure protection enabled by the claims.
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`29.
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`The novel features of the invention are recited in the claims. For example, Claim
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`1 of the ’886 Patent recites:
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`A database apparatus comprising:
`a critical database server including a primary server supporting a primary
`database instance and a secondary server supporting a secondary database
`instance that mirrors the primary database instance, the secondary server
`generating an acknowledgment signal indicating that a selected critical
`database transaction at the primary database instance is mirrored at the
`secondary database instance, the critical databases server including a
`mirroring component communicating with the primary and secondary
`servers to transfer database log file entries of the primary database instance
`to the secondary server, the secondary server applying and logging the
`transferred database log file entries to the secondary database instance and
`producing said acknowledgement signal subsequent to the applying and
`logging of the selected critical database transaction, wherein the mirroring
`component includes a control structure that indexes critical database
`transactions that are applied and logged at the secondary database instance,
`the acknowledgement signal corresponding to indexing in the control
`structure of at least one of the selected critical database transaction and a
`critical database transaction that commits after the selected critical database
`transaction;
`a plurality of other servers each supporting corresponding database
`instances; and
`a data replicator communicating with the critical database server and the
`plurality of other servers to replicate the selected critical database
`transaction on at least one of said plurality of other servers responsive to the
`acknowledgment signal.
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`(Ex. 2, at 10:57-11:22). Claim 1 of the ’886 Patent describes claim elements, individually or as
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`an ordered combination, that were non routine and unconventional at the time of the invention in
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`2003 and an improvement over prior art, as it provided a way (not previously available) to avoid
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`data inconsistencies among remote servers in the event of a failure of the central database
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`primary server; provide asynchronous replication functionality that is robust with respect to
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`primary database failure; and provide for fail-safe recovery via a high availability replication
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`system, while retaining the broad functionality of data distribution by asynchronous replication.
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`(Id., at 3:55-67). For example, in a distributed database system, it was unconventional for a
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`secondary server to produce an acknowledgement for applying received logs to the secondary
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`database and for a data replicator to wait to replicate critical database transactions in response to
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`such acknowledgement.
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`30.
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`On October 29, 2013, the U.S. Patent and Trademark Office duly and lawfully
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`issued United States Patent No. 8,572,612 (“the ’612 Patent”), entitled “Autonomic Scaling of
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`Virtual Machines in a Cloud Computing Environment.” A true and correct copy of the ’612
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`Patent is attached hereto as Exhibit 3.
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`31.
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`Daedalus is the owner and assignee of all right, title, and interest in and to the
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`’612 Patent, including the right to assert all causes of action arising under said patent and the
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`right to any remedies for infringement of it.
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`32.
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`The ’612 Patent describes, among other things, novel systems and methods that
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`improve the data processing and the scaling of resources in a cloud computing environment by
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`efficiently utilizing virtual machines (VM) that autonomically deploy and terminate based on
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`workload. These inventive technological improvements solved then-existing problems in the
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`field of cloud computing. As described in the ʼ612 Patent, cloud computing is a cost-effective
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`means of delivering information technology services through a virtual platform rather than
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`hosting and operating the resources locally. Virtual machines (VMs) may reside on a single
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`powerful blade server, or a cloud system may utilize thousands of blade servers. (See Ex. 3, at
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`1:27-36). A VM is composed of modules of automated computing machinery. (Id., at 1:56-58).
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`The hypervisor (a separate module of automated computing machinery that interacts with the
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`host hardware) creates a particular instance of a VM. (Id., at 6:7-9; 6:25:33). One of the
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`drawbacks of cloud computing systems before the ’612 Patent invention, was that the end user
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`would lose control over the underlying hardware infrastructure, including control over scaling
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`the number of virtual machines running an application. In such an environment, scaling of an
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`application would be carried out manually by a system administrator, but only when end users
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`would report performance degradation. This technique is slow and complex, and it inherently
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`risks a user's experiencing a poor quality of service. (Id., at 1:37-50).
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`33.
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`The ’612 Patent overcomes these drawbacks and improves the functioning of a
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`computer network, for example, by disclosing an improved way of scaling virtual machine
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`instances using autonomic scaling to deploy additional VM instances, terminate VM instances,
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`and provide user control with little or no governance by hand.
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`34.
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`In one aspect, the ’612 Patent invention describes autonomic scaling of virtual
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`machines in a cloud computing environment. A self-service portal enables users themselves to
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`set up VMs as they wish, according to the user’s specifications. The cloud operating system then
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`deploys an instance of the now-specified VM in accordance with the received user specifications.
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`The self-service portal passes the user specification to the deployment engine. The VM catalog
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`contains VM templates, standard-form descriptions used by hypervisors to define and install
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`VMs. The deployment engine fills in the selected template with the user specifications and
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`passes the complete template to the data center administration server in the local data center.
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`The data center administration server then calls a hypervisor on a cloud computer to install the
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`instance of the VM specified by the selected, completed VM template. (See Ex. 3, at 5:17-36).
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`35.
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`The ’612 Patent further describes that the cloud computing environment includes
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`a plurality of virtual machines (‘VMs’), and a cloud operating system and a data center
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`administration server operably coupled to the VMs. The cloud operating system deploys an
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`instance of a VM and flags the instance of a VM for autonomic scaling including termination.
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`The cloud operating system monitors one or more operating characteristics of the instance of the
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`VM, deploys an additional instance of the VM if a value of an operating characteristic exceeds a
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`first predetermined threshold value, and terminates operation of the additional instance of the
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`VM if a value of an operating characteristic declines below a second predetermined threshold
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`value. (See Ex. 3, at 1:53-2:6). With autonomic scaling, the environment gracefully handles
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`varying workloads, either increasing or decreasing, and can adapt to varying workloads
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`transparently, smoothly, and with a minimum of difficulty for the users of the data processing
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`service provided by such a cloud computing environment. (See id., at 2:28-45).
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`36.
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`Figure 3 of the ’612 Patent shows a flowchart illustrating example methods of
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`autonomic scaling:
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`37.
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`The novel features of the invention are recited in the claims. For example, Claim
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`1 of the ’612 Patent recites:
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`A method of autonomic scaling of virtual machines in a cloud computing
`environment, the cloud computing environment comprising a plurality of
`virtual machines (‘VMs’), the VMs comprising modules of automated
`computing machinery installed upon cloud computers disposed within a
`data center, the cloud computing environment further comprising a cloud
`operating system and a data center administration server operably coupled
`to the VMs, the method comprising:
`deploying, by the cloud operating system, an instance of a VM, including
`flagging the instance of a VM for autonomic scaling including termination
`and executing a data processing workload on the instance of a VM;
`monitoring, by the cloud operating system, one or more operating
`characteristics of the instance of the VM;
`deploying, by the cloud operating system, an additional instance of the VM
`if a value of an operating characteristic exceeds a first predetermined
`threshold value, including executing a portion of the data processing
`workload on the additional instance of the VM; and
`terminating operation of the additional instance of the VM if a value of an
`operating characteristic declines below a second predetermined threshold
`value;
`wherein the cloud operating system comprises a module of automated
`computing machinery, further comprising a self service portal and a
`deployment engine, and deploying an instance of a VM further comprises:
`passing by the self service portal user specifications for the instance of a
`VM to the deployment engine;
`implementing and passing to the data center administration server, by the
`deployment engine, a VM template with the user specifications; and
`calling, by the data center administration server, a hypervisor on a cloud
`computer to install the VM template as an instance of a VM on the cloud
`computer.
`
`
`(Ex. 3, at 15:42-16:8). Claim 1 of the ’612 Patent describes claim elements, individually or as an
`
`ordered combination, that were non routine and unconventional at the time of the invention in
`
`2010 and an improvement over prior art, as it provided a way (not previously available) to add or
`
`terminate virtual machines based on individualized thresholds, thereby efficiently utilizing
`
`resources and transparently adapting workload. For example, as noted by the U.S. Patent and
`17
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`

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`Case 6:20-cv-00428-ADA Document 1 Filed 05/26/20 Page 18 of 64
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`
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`Trademark Office upon issuance, the known prior art failed to teach at least the combination of
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`“deploying, by the cloud operating system, an additional instance of the VM if a value of an
`
`operating characteristic exceeds a first predetermined threshold value, including executing a
`
`portion of the data processing workload on the additional instance of the VM; and terminating
`
`operation of the additional instance of the VM if a value of an operating characteristic declines
`
`below a second predetermined threshold value, wherein the cloud operating system comprises a
`
`module of automated computing machinery, further comprising a self-service portal and a
`
`deployment engine, and deploying an instance of a VM further comprises: passing by the self-
`
`service portal user specifications for the instance of a VM to the deployment engine;
`
`implementing and passing to the data center administration server, by the deployment engine, a
`
`VM template with the user specifications; and calling, by the data center administration server, a
`
`hypervisor on a cloud computer to install the VM template as an instance of a VM on the cloud
`
`computer.” Accordingly, the use of user-defined template structures, incorporating user
`
`specifications, for both the allocation and deallocation of virtual machine resources was
`
`described and acknowledged to be a novel and unconventional solution at the time.
`
`38.
`
`On March 11, 2014, the U.S. Patent and Trademark Office duly and lawfully
`
`issued United States Patent No. 8,671,132 (“the ’132 Patent”), entitled “System, Method, and
`
`Apparatus for Policy-Based Data Management.” A true and correct copy of the ’132 Patent is
`
`attached hereto as Exhibit 4.
`
`39.
`
`Daedalus is the owner and assignee of all right, title, and interest in and to the
`
`’132 Patent, including the right to assert all causes of action arising under said patent and the
`
`right to any remedies for infringement of it.
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`18
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`Case 6:20-cv-00428-ADA Document 1 Filed 05/26/20 Page 19 of 64
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`40.
`
`The ’132 Patent describes, among other things, novel systems and methods that
`
`improve data management by prioritizing file storage operations to allow remote clients (or end
`
`users) using different computing platforms to have more efficient and less expensive access.
`
`These inventive technological improvements solved then-existing problems in the field of data
`
`storage systems. For example, prior to the invention of the ’132 Patent, distributed storage
`
`systems’ ability to automatically allocate resources to prioritize operations was severely limited.
`
`For example, existing systems suffered from saturation when many users simultaneously store,
`
`retrieve, or move data on the distributed storage system. Another problem was the lack of a
`
`method for prioritizing operations, resulting in unnecessary delays in the performance of the
`
`more important operations. Additionally, existing distributed storage systems were not capable
`
`of storing data using prioritized operations within multiple platforms. Existing systems also did
`
`not permit a user to automatically select between multiple storage options when generating files
`
`or account for the different requirements placed on these files. Yet another problem is the great
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`variation in the equipment available to store data, wherein some files are stored in a manner that
`
`provides insufficient performance, while others take up comparatively expensive storage
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`capacity