Implicit Networks Accuses Windows Seven of Infringement

If it wasn't any good, no one would be accusing it of infringement, right?  Unwelcome flattery of this nature was thrust upon Microsoft and its successful Windows Seven product last week when a patent infringement case was brought by local patent licensing company, Implicit Networks.

Implicit owns US 6,629,163, Method and System for Demultiplexing a First Sequence of Packet Components to Identify Specific Components Wherein Subsequent Components are Processed without Re-Identifying Components.  According to the complaint, this technology is used in Microsoft's Windows Seven "Filtering Platform."

Implicit Networks Sued by Sun

It's been a bad month for local patent licensing company, Implicit Networks. Its case against Intel, Sun, Real, and AMD was stayed in view of reexamination, and now, it has been DJed (pronounced "dee-jay-ed," yes, it can be a verb, meaning "to sue for a declaratory judgment") by Sun.

Sun filed a complaint on January 15, 2009, asking for an order invalidating US Patent Nos. 6,324,685 and 6,976,248, and further asking for an order of noninfringement and unenforceability (apparently based on laches and equitable estoppel, not inequitable conduct). Both patents-in-suit relate to software methods for providing applets and enhanced security features for computer-servers. The complaint was filed in the USDC, Northern District of California by Fish and Richardson. The complaint contains some interesting allegations of personal jurisdiction over Implicit Networks (a small Seattle-based company with few contacts, if any, in California), and incorrectly refers to a related case involving these patents (filed against Adobe, IBM, Oracle, and SAP) as filed in the "Middle Western District of Washington." Implicit's WDWA case against IBM, Oracle, Adobe, and SAP involves Infringement allegations targeting IBM's Websphere Application Server, Oracle's Application Server and BEA WebLogic Server, SAP's NetWeaver and Adobe's JRun and ColdFusion products.


Implicit%20Networks%20DJ%20Complaint%20by%20Sun.pdf

Implicit Networks Case Stayed Pending Reexamination

Local patent licensing company, Implicit Networks, was dealt a blow recently in its bid to enforce patent rights against Intel, AMD, Real Networks, and Sun. Implicit Sued back in February 2008 on U.S. Patent No. 6,629,163, a patent covering various encryption methods using demultiplexing technology for data processing. Implicit Networks alleges Intel uses this patented technology in its Viiv-based products, AMD and Raza allegedly use it in ATI and Alechemy products, Nvidia in its Stant Media software, Sun in its Java Media Framework, and Real in its Helix DNA client.

The party defendants filed a request for ex-parte reexam in December 2008, nearly 10 months after the complaint was filed. Shortly thereafter, they moved to stay the case. On Monday, Judge Robart granted the motion, relying in large part Implicit's delay in prosecuting the case, its grant of multiple extensions of time, its failure to conduct early discovery, its failure to seek even a single deposition after almost a year of pendency of the lawsuit. Further, its status as a "patent licensing company" weighed heavily against its claims of prejudice in view of the requested stay.

This result underscores the need for patent plaintiffs to have a clear plan for enforcement going into litigation and to diligently execute that plan from the first day the complaint is filed. The result here might have been different had Implicit proceeded diligently with discovery. After all, it had ten months before the party defendants even sought reexamination. A lot could have been accomplished in the last 12 months since the case was filed in order to buttress arguments that delay in view of reexamination will cause prejudice.

From Judge Robart's order:

"Finally, Implicit argues that “stays continue to prejudice the non-movant even after the stay has been lifted, particularly in the aspects of litigation that require expediency.” (Resp. at 6.) Here, Implicit has not moved with great expediency. Twelve months have passed since the initial filing, yet only recently has Implicit served interrogatories and requests for production. (See Knox Decl. ¶ 2.) This lack of urgency weighs in favor of granting a stay."

Implicit%20Networks%20Order%20Granting%20Stay.pdf

NVIDIA Settles Patent Dispute with Implicit Networks

Santa Clara-based NVIDIA Corporation, manufacturer of graphics-processor technologies for workstations, desktop computers, and mobile devices, settled a patent dispute today with Implicit Networks. Implicit is a small, Seattle-based company involved in computer software and licensing. Implicit is taking on some of technology's biggest companies, including the likes of Intel and AMD.

Implicit's case against Intel, NVIDIA and others involves US Patent No. 6,629,163 covering "A method and system for demultiplexing a first sequence of packet components to identify specific components wherein subsequent components are processed without re-identifying components." This is basically, a system for processing encrypted data. According to allegations in the Complaint, this technology is used in Intel's Viiv platform, the Java Media Framework, ATI Radeon hardware, software from NVIDIA called Stant, and other products.

Details of NVIDIA's settlement with Implicit remain confidential, or at least I don't have any information about it other than what is in this post.

order%20dsmsing%20NVIDIA.pdf

Seattle Patent Litigation Update: July 2008

It was a very busy month in July for patent litigation. Here is the case list.

July 29, 2008
Chef'n Corporation v. Trudeau Corporation
WA Western
Pechman
Patent
Federal Question
Plaintiff: Chef'n Corporation; Defendant: Trudeau Corporation

July 23, 2008
Northwest Agricultural Products, Inc. v. Emerald Bioagriculture Corp
WA Eastern
Shea
Patent
Federal Question
Plaintiff: Northwest Agricultural Products, Inc.; Defendant: Emerald Bioagriculture Corp

July 15, 2008
Malki v. Franke Commercial Systems Inc. et al
WA Western
Martinez
Patent
Federal Question
Plaintiff: Avraham Malki; Defendant: Franke Commercial Systems Inc., H & K Norwood Inc., McDonald's Corporation

Implicit Networks Inc. v. International Business Machines Corporation et al

WA Western
Tsuchida
Patent
Federal Question
Plaintiff: Implicit Networks Inc.; Defendant: International Business Machines Corporation, Oracle Corporation, Sap America Inc., Adobe Systems Incorporated
July 11, 2008

Loops, LLC et al v. Phoenix Trading, Inc. et al
WA Western
Martinez
Patent
Federal Question
Plaintiff: Loops, LLC, Loops Flexbrush LLC.; Defendant: Phoenix Trading, Inc., Wendy Hemming, Jeffrey R Hemming, H&L Industrial, Does
July 8, 2008

Widevine Technologies Inc v. Verimatrix Inc
WA Western
Robart
Patent
Federal Question
Plaintiff: Widevine Technologies Inc; Defendant: Verimatrix Inc

You might take notice that this list includes another patent case by Implicit Networks, a relatively unknown local technology owner with some pretty large bones to pick. Implicit's case filed last month is against IBM, Oracle, Adobe, and SAP. It also filed in February against Intel, AMD, Sun, NVIDIA, Raza, and Real Networks. Made me think "Hey ... you forgot someone ... 'your potential, our passion.'"

Implicit's case against IBM, Oracle, Adobe, and SAP involves Infringement allegations targeting IBM's Websphere Application Server, Oracle's Application Server and BEA WebLogic Server, SAP's NetWeaver and Adobe's JRun and ColdFusion products. The patents-in-suit are for computer-server software that performs faster security functions, US 6,324,685, and 6,976,248.

Implicit's case against Intel and others involves US Patent No. 6,629,163 covering "A method and system for demultiplexing a first sequence of packet components to identify specific components wherein subsequent components are processed without re-identifying components." This is basically, a system for processing encrypted data. According to allegations in the Complaint, this technology is used in Intel's Viiv platform, the Java Media Framework, ATI Radeon hardware, software from NVIDIA called Stant, and other products.

In both cases, Implicit is represented by James Rogers, as well as Ed Goldstein, Corby Vowell, adn Matt Prebeg of Houston, Texas. Texas lawyers filing contingent fee-patent litigation in Seattle? Why not. You'll get to trial faster here than in the so-called "rocket docket" of East Texas, where patent cases are languishing due to a back-log.