Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 1 of 92 Page ID #:1
`
`Jason S. Angell, Bar No. 221607
`jangell@hopkinscarley.com
`Christopher A. Hohn, Bar No. 271759
`chohn@hopkinscarley.com
`Cary Chien, Bar No. 274078
`cchien@hopkinscarley.com
`Robert K. Jain, Bar No. 309728
`rjain@hopkinscarley.com
`HOPKINS & CARLEY
`A Law Corporation
`The Letitia Building
`70 South First Street
`San Jose, CA 95113-2406
`mailing address:
`P.O. Box 1469
`San Jose, CA 95109-1469
`Telephone: (408) 286-9800
`Facsimile: (408) 998-4790
`Attorneys for Plaintiffs
`BROADCOM CORPORATION and AVAGO
`TECHNOLOGIES INTERNATIONAL SALES
`PTE. LIMITED.
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`SOUTHERN DIVISION
`BROADCOM CORPORATION and
`Case No. 8:20-cv-529
`AVAGO TECHNOLOGIES
`COMPLAINT FOR PATENT
`INTERNATIONAL SALES PTE.
`INFRINGEMENT
`LIMITED,
`DEMAND FOR JURY TRIAL
`
`Plaintiffs,
`
`v.
`NETFLIX, INC.,
`Defendant.
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 2 of 92 Page ID #:2
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`Plaintiffs Broadcom Corporation (“Broadcom Corp.”) and Avago
`
`Technologies International Sales Pte. Limited (“Avago”) (collectively, the
`“Broadcom Entities”) file this Complaint for Patent Infringement against Defendant
`Netflix, Inc. (“Netflix”) and allege as follows:
`NATURE OF THIS ACTION
`This complaint alleges patent infringement. The Broadcom Entities
`1.
`allege that Netflix has infringed and continues to infringe, directly and/or indirectly,
`eight patents: U.S. Patent Nos. 7,266,079 (the “’079 Patent”); 8,259,121 (the “’121
`Patent”); 8,959,245 (the “’245 Patent”); 8,270,992 (the “’992 Patent”); 6,341,375
`(the “’375 Patent”); 8,572,138 (the “’138 Patent”); 6,744,387 (the “’387 Patent”);
`6,982,663 (the “’663 Patent”); and 9,332,283 (the “’283 Patent”). Copies of these
`patents (collectively, the “Patents-in-Suit”) are attached hereto as Exhibits A-I.
` The Patents-in-Suit cover foundational technologies that are essential
`2.
`to various aspects of Netflix’s video streaming service, and the systems that Netflix
`uses to support this service.
`Netflix directly infringes the Patents-in-Suit by making, using, offering
`3.
`to sell, selling, and/or importing into the United States internet video streaming
`technology, software, and services that practice the inventions claimed in the
`Patents-in-Suit. Netflix directs and controls each relevant aspect of the accused
`technology discussed herein, and benefits from the use of each feature that infringes
`the Patents-in-Suit.
`Netflix indirectly infringes the Patents-in-Suit by inducing its
`4.
`consumer end-users to directly infringe these patents. For example, Netflix induces
`infringement by providing software (e.g., the Netflix application) that, when used
`by consumers or other content viewers to stream digital content to televisions,
`personal computers, phones, tablets, and other devices, as directed and intended by
`
`
`Netflix, causes those end-users to use and practice the inventions claimed in the
`
`
`
`Patents-in-Suit.
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 3 of 92 Page ID #:3
`
`
`The Broadcom Entities seek damages and other relief for Netflix’s
`5.
`infringement of the Patents-in-Suit.
`
`PARTIES
`Plaintiff Broadcom Corporation is a California corporation
`6.
`headquartered at 1320 Ridder Park Drive, San Jose, California 95131. Broadcom
`Corp. maintains offices within the Central District of California at 15101 Alton
`Parkway, Irvine, California 92618. Broadcom Corp. is an indirect subsidiary of
`Broadcom, Inc.
`Plaintiff Avago Technologies International Sales Pte. Ltd. is a
`7.
`corporation formed under the laws of Singapore with places of business at 1320
`Ridder Park Dr., San Jose, California 95131 and 1 Yishun Avenue 7, Singapore
`768923. Avago is also an indirect subsidiary of Broadcom, Inc.
`Defendant Netflix, Inc. is a Delaware corporation that maintains its
`8.
`principal place of business and global headquarters at 100 Winchester Circle, Los
`Gatos, 95032.
`Netflix maintains regular and established places of business in this
`9.
`District, including an office at 5808 Sunset Blvd., Los Angeles, CA 90028, where
`Netflix employs hundreds of people. According to Netflix’s website, the Los
`Angeles office “is the entertainment hub for Netflix with teams such as Content,
`Legal, Marketing & Publicity and is located on the Sunset Bronson Studio Lot
`where a variety of Netflix content is created.”1
`10. Netflix may be served through its registered agent for service of
`process in California: CT Corporation System, 818 W. Seventh St, Suite 930, Los
`Angeles, CA 90017.
`11. Netflix claims to be a global leader in streaming digital video content.
`Netflix streams videos of various types, such as films and television series, to over
`
`
`
`
`
`
`1 https://jobs.netflix.com/locations/los-angeles-california
`
`
`- 3 -
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 4 of 92 Page ID #:4
`
`
`158 million paid members in over 190 countries. Upon information and belief,
`Netflix designs, operates, tests, manufactures, uses, offers for sale, sells, and/or
`imports into the United States—including into the Central District of California—
`internet video streaming software, systems, and services that generate billions of
`dollars of revenue for Netflix each year.
`JURISDICTION AND VENUE
`12. The Broadcom Entities bring this civil action for patent infringement
`under the Patent Laws of the United States, 35 U.S.C. § 1 et. seq., including 35
`U.S.C. §§ 271, 281-285. This Court has subject matter jurisdiction over this action
`pursuant to 28 U.S.C. §§ 1331 and 1338.
`13. The Broadcom Entities’ claims for relief arise, at least in part, from
`Netflix’s business contacts and other activities in the State of California and in this
`District. Upon information and belief, Netflix has committed acts of infringement
`within this District and the State of California by making, using, selling, offering
`for sale, and/or importing into the United States and this District products, systems,
`and services that infringe one or more claims of the Patents-in-Suit as set forth
`herein. Further, Netflix induces others within this District to infringe one or more
`claims of the Patents-in-Suit.
`14. Venue is proper in this district and division under 28 U.S.C. §§
`1391(b)-(d) and 1400(b) because Netflix has committed acts of infringement in the
`Central District of California and has a regular and established physical place of
`business in Los Angeles, part of the Central District. Upon information and belief,
`Netflix employs engineers and technical professionals of many disciplines at its Los
`Angeles facility.
`
`FACTUAL BACKGROUND
`15. Henry Samueli and Henry Nicholas founded Broadcom in 1991 in Los
`
`
`
`Angeles, California. Since then, Broadcom has grown to be a global technology
`
`
`
`company that produces category-leading semiconductor and infrastructure software
`
`
`- 4 -
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 5 of 92 Page ID #:5
`
`
`solutions. Among other things, Broadcom provides one of the industry’s broadest
`portfolios of highly integrated semiconductor chips that seamlessly deliver voice,
`video, data, and multimedia connectivity in the home, office, and mobile
`environments. From its headquarters in San Jose, California, Broadcom has
`expanded its footprint across the United States and around the world, employing
`thousands of individuals globally and in the United States. An overview of
`Broadcom’s history can be found on its website at:
`https://www.broadcom.com/company/about-us/company-history/.
`16. Broadcom’s continued success depends in substantial part upon its
`constant attention to research and development. Broadcom and its subsidiaries
`spend billions of dollars on research and development for their products each year.
`Because of this focus, Broadcom has produced a wide range of novel technologies
`and inventions that are directed to advancements in, among other things,
`semiconductor design and digital communications, digital content distribution,
`enterprise and data center networking, home connectivity, set top boxes,
`infrastructure software, and other technologies integral to business and consumer
`settings across the United States and throughout the world.
`17. Broadcom relies on the patent system as an important part of its
`intellectual property program to protect the valuable technology and inventions
`resulting from its research and development efforts. The Broadcom Entities and
`their related entities have tens of thousands of patents in the United States and
`abroad.
`In addition to their internally developed inventions and associated
`18.
`intellectual property, the Broadcom group of companies have acquired technology
`and intellectual property through mergers and acquisition with other major
`technology companies, such as the Avago family of companies, LSI, Brocade, CA,
`
`
`Inc. (formerly known as Computer Associates International, Inc.), and Symantec’s
`
`
`
`enterprise business.
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 5 -
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 6 of 92 Page ID #:6
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`19. As explained in detail below, Netflix has built its familiar video
`streaming business, in part, on the Broadcom Entities’ patented technology. Netflix
`relies on this technology for crucial aspects of the Netflix streaming service. This
`includes, for example, the Netflix systems used to ensure effective and reliable
`delivery of streaming content with minimal interruptions, to ensure the efficient use
`of Netflix server resources, and to encode Netflix streaming content in a format
`compatible with a large percentage of the client devices (e.g., computers, smart
`TVs) used to access the Netflix service.
`In doing so, Netflix has caused, and continues to cause, substantial and
`20.
`irreparable harm to the Broadcom Entities. For instance, the Broadcom Entities sell
`semiconductor chips used in the set top boxes that enable traditional cable
`television services. Upon information and belief, as a direct result of the on-
`demand streaming services provided by Netflix, the market for traditional cable
`services that require set top boxes has declined, and continues to decline, thereby
`substantially reducing Broadcom’s set top box business.
`21. For instance, it is widely reported that the rise of on-demand video
`streaming services such as Netflix has concurrently lead to a decrease in demand
`for traditional cable services. As an example, Variety reported in February 2019
`that “[t]he five biggest U.S. pay-television providers saw their traditional subscriber
`rolls shrink 4.2% in 2018, as they collectively lost around 3.2 million customers for
`the year. That’s an acceleration from estimated sector-wide declines of 3.7% in
`2017 and 2% in 2016.” The article attributes the loss in part to a migration of
`customers to Netflix.2
`22. Upon information and belief, Netflix could not displace traditional
`cable television services, or could not do so as effectively, without the use of the
`
`
`
`
`
`2 https://variety.com/2019/biz/news/cord-cutting-2018-accelerate-us-pay-tv-
`
`subscribers-1203138404/
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 6 -
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 7 of 92 Page ID #:7
`
`
`Broadcom Entities’ patented technology, which—as explained above—enable
`critical aspects of Netflix’s systems.
`23. Netflix is aware of the Broadcom Entities’ patent portfolio, including
`specifically nearly all the patents asserted in this Complaint, based on
`communications between Netflix and the Broadcom Entities. Representatives of
`the Broadcom Entities have repeatedly attempted to engage Netflix in licensing
`discussions. As part of these attempts, the Broadcom Entities informed Netflix of
`its infringement of the patents asserted in this Complaint (with the exception of the
`’283 Patent) on or about September 26, 2019, and the parties engaged in in-person
`discussions on October 24, 2019. Netflix did not dispute the infringement
`presentations Broadcom provided to Netflix, or otherwise assert that it did and does
`not infringe the patents identified to Netflix. Unfortunately, Netflix declined to
`agree to terms for a license for its use of the Broadcom Entities’ patents and
`technology, and declined to present a counteroffer to license terms offered by the
`Broadcom Entities.
`24. Left with no other choice, the Broadcom Entities bring this action to
`protect their rights and their investment in the research and development of novel
`technologies.
`
`FIRST CLAIM FOR RELIEF
`(Infringement of U.S. Patent No. 7,266,079)
`25. The Broadcom Entities reallege and incorporate by reference the
`allegations of paragraphs 1-24 set forth above.
`26. The ʼ079 Patent, entitled “Dynamic Network Load Balancing Over
`Heterogeneous Link Speed,” was duly and legally issued on September 4, 2007
`from a patent application filed on July 2, 2001, with Kan Frankie Fan as the named
`inventor. A copy of the ʼ079 Patent is attached hereto as Exhibit A.
`
`
`27. The ʼ079 Patent claims priority from U.S. Provisional Application No.
`
`
`
`60/233,338, filed on September 18, 2000.
`
`
`- 7 -
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 8 of 92 Page ID #:8
`
`
`28. The ʼ079 Patent was assigned to Avago, which currently holds all
`substantial rights, title, and interest in and to the ʼ079 Patent.
`29. Pursuant to 35 U.S.C. § 282, the ʼ079 Patent is presumed valid.
`30. The ʼ079 Patent is directed to an improvement in the functionality of
`networked computer systems by “balancing data flow there through.”3 Specifically,
`the ʼ079 Patent’s claims describe a new approach for balancing transmission unit
`traffic over the multiple heterogeneous links that often connect computing
`platforms in a computer network.
`31. The ʼ079 Patent addresses a specific technical problem that arose in
`the computer networking environment as the networks grew ever larger and more
`complex, and as users sought to transmit ever greater volumes of data across these
`networks. As the ʼ079 Patent states, “[t]he present invention relates to
`communications apparatus and methods, particularly to computer networking
`apparatus and methods, and more particularly to computer networking apparatus
`and methods for balancing data flow there through.”4
`32. As the ʼ079 Patent explains, “[a] common problem in communication
`networks is maintaining efficient utilization of network resources, particularly with
`regard to bandwidth, so that data traffic is efficiently distributed over the available
`links between sources and destinations.”5 “Prior art solutions include apparatus and
`methods that balance data traffic over homogeneous (same-speed) links between
`heterogeneous or homogeneous computing platforms (servers, clients, etc.).”6
`However, “[i]ncreasingly, high-performance computing platforms communicate
`with other computers, routers, switches, and the like, using multiple links which,
`for a variety of reasons, may operate at disparate link speeds.”7 “For
`
`
`3 ʼ079 Patent, 1:17-21.
`
`
`4 Id.
`
`5 Id. at 1:23-27.
`
`6 Id. at 1:27-30.
`
`7 Id. at 1:30-34.
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 8 -
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 9 of 92 Page ID #:9
`
`
`example…adverse network conditions may degrade the performance of one or
`more links, effectively presenting a heterogeneous-link-speed environment to the
`server and its link partner(s).”8
`33. Accordingly, a need existed for a means to “dynamically balance
`transmission unit traffic in a heterogeneous-link-speed environment” in order to
`improve the functionality of computer networks.9
`34. The ʼ079 Patent claims specific, novel ways to solve these technical
`problems by dynamically balancing data traffic in a computer networking
`environment with heterogeneous link speeds. The claims of the ʼ079 Patent are
`directed to new, improved methods and apparatuses for balancing transmission unit
`traffic over networks links.
`35. The methods and apparatuses described in the ʼ079 Patent improve the
`functionality of a networked computer system by balancing the data traffic among
`network links having different speeds, capabilities, and congestion levels that
`connect the various networked elements, thereby improving the speed and
`efficiency of data transmission within the network.
`36. Claim 1 of the ʼ079 Patent reads as follows:
`
`A method for balancing transmission until traffic over
`network links, comprising:
`a. disposing transmission units into flows;
`b. grouping flows into first flow lists, each of the
`first flow lists corresponding to a selected network
`link;
`c. determining a traffic metric representative of a
`traffic load on the selected network link;
`d. responsive to the traffic metric, regrouping flows
`into second flow lists corresponding to the selected
`
`
`
`
`
`
`8 Id. at 1:34-40.
`
`9 Id. at 1:40-43.
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 9 -
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 10 of 92 Page ID #:10
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`network link, the regrouping balancing the
`transmission unit traffic among the network links;
`and
`e. transmitting the respective second flow list over
`the respective selected network link.
`
`37. Netflix directly infringes the ‘079 Patent by making, using, offering to
`sell, and/or selling in the United States its Netflix service, which utilizes the
`inventions claimed in the ‘079 Patent to balance traffic over Netflix’s systems,
`including its content delivery network (“CDN”).
`38. Netflix directly infringes at least independent claim 1 of the ʼ079
`Patent at least in the exemplary manner described below.
`39. Netflix utilizes the claimed “method for balancing transmission unit
`traffic over network links,” including, for instance, in operating its CDN, which
`Netflix uses to stream video content to its subscribers over the internet. The Netflix
`CDN is illustrated in the following diagram.
`
`
`
`
`
`
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 10 -
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 11 of 92 Page ID #:11
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`Source: https://openconnect.netflix.com/Open-Connect-Overview.pdf
`40. The Netflix CDN comprises hardware that Netflix builds and operates.
`Additionally, for some aspects of its CDN, Netflix uses hardware produced and
`maintained by third parties, including cloud computing services purchased from
`third parties. However, all the infringing technologies discussed in this Complaint
`are developed and controlled by Netflix, including though the use of Netflix
`software that controls the relevant functions performed by the underlying hardware.
`41. Notably, in apparent recognition that its cloud computing services
`could be used by a customer to infringe any number of patents involving a
`computer as part of a larger system or process, the AWS standard customer
`agreement makes clear that AWS has no liability for patent infringement claims
`arising from infringement by combinations of AWS’s services with any other
`
`product, service, software, data, content or method.10
`
`
`
`
`
`10 https://aws.amazon.com/agreement/
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 11 -
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 12 of 92 Page ID #:12
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`42. As part of its CDN, Netflix created, operates, uses, and maintains a
`“global network of thousands of [Open Connect Appliances],” also known as
`OCAs.11
`43. As Netflix explains, “[t]he building blocks of Open Connect are our
`suite of purpose-built server appliances, called Open Connect Appliances (OCAs).
`These appliances store and serve our video content, with the sole responsibility of
`delivering playable bits to client devices as fast as possible.”12
`44. Within the CDN, Netflix stores the TV programs and movies that it
`offers as a series of files. Netflix’s customers access Netflix’s video content
`through different types of client devices, including digital televisions, desktop
`computers, laptop computers, tablet computers, and mobile phones. These client
`devices are produced by many different manufacturers. Each device has certain
`capabilities and features that require media to be delivered in a specific form or
`format. In many cases, the media format used by one device cannot be used by
`another. Thus, Netflix must make its content available to its users in many different
`formats.
`45.
`
`In Netflix’s words:
`Every title is encoded in multiple formats, or encoding
`profiles. For example, some profiles may be used by iOS
`devices and others for a certain class of Smart TVs.
`There are video profiles, audio profiles, and profiles that
`contain subtitles. Each audio and video profile is encoded
`into different levels of quality. For a given title, the
`higher the number of bits used to encode a second of
`content (bps), the higher the quality….Finally, we have
`audio profiles and subtitles available in multiple
`languages. So for each quadruple of (title, encoding
`profile, bitrate, language), we need to cache one or more
`files. As an example, for streaming one episode of The
`Crown we store around 1,200 files!”13
`
`
`
`
`
`11 https://openconnect.netflix.com/Open-Connect-Overview.pdf
`
`12 Id.
`
`13 https://medium.com/netflix-techblog/content-popularity-for-open-connect-
`
`b86d56f613b
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 12 -
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 13 of 92 Page ID #:13
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`Source: https://medium.com/netflix-techblog/content-popularity-for-open-
`connect-b86d56f613b
`46. Netflix divides these various content files “into 2 second intervals
`called segments.”14
`47. When a Netflix subscriber initiates a playback session by selecting a
`movie or TV show and pressing “play,” the Netflix system “determine[s] which
`specific files are required to handle the playback request—taking individual client
`characteristics and current network conditions into account.” The Netflix system
`“pick[s] OCAs that the requested files should be served from [and] generates URLs
`for these OCAs…” The Netflix system then “hand[s] over URLs of the appropriate
`OCAs to the client device, and the OCA begins to serve the requested files.”
`
`
`
`
`
`
`
`
`14 https://cs.uwaterloo.ca/~brecht/papers/iiswc-netflix-wload-2016.pdf
`
`
`- 13 -
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 14 of 92 Page ID #:14
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`Source: https://openconnect.netflix.com/Open-Connect-Overview.pdf
`48. Additionally, when a Netflix subscriber initiates a playback session,
`the Netflix system provides the “offsets of all segments.”15 The client device,
`under the control of the Netflix application running on it, then “downloads segment
`offsets and content from multiple content files with different bit rates, then selects a
`starting bitrate that can be supported by available network bandwidth.”16 The client
`device “continue[s] to download segments sequentially from the same file unless
`network or server conditions change (which may result in switching to a different
`bit rate) or a user event occurs (e.g., stopping or skipping to a new title position).”17
`Thus, and as described further below, Netflix performs a “method for balancing
`transmission unit traffic over network links.”
`49. The Netflix CDN also “dispos[es]” the “transmission units into flows.”
`For example, each of the above-described “segments” of a given content file
`constitutes a “transmission unit.” The Netflix system “disposes” these segments
`
`
`
`
`
`15 https://cs.uwaterloo.ca/~brecht/papers/iiswc-netflix-wload-2016.pdf
`
`16 Id.
`
`17 Id.
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 14 -
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 15 of 92 Page ID #:15
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`“into flows” by causing the transmission of a series of segments of various content
`files—each a “flow”—to each of its many subscribers during the playback process.
`50. Upon information and belief, the Netflix system also “group[s] flows
`into first flow lists,” each of which “correspond[] to a selected network link.” For
`example, each of the OCAs, and each of the file locations specified by a URL
`within each OCA, constitutes a “network link.” As explained above, Netflix
`“group[s] flows into first flow lists” by picking the OCAs, and the specific files
`thereon, that are used to serve a subscriber’s playback request for each of the
`thousands, or even millions, of subscribers streaming video content from Netflix at
`any given moment.
`51. On information and belief, the Netflix system “determin[es] a traffic
`metric representative of a traffic load on the selected network link.”
`52. For example, during the playback process, which is controlled by
`Netflix software, the client device “intelligently selects which OCA to use.”18 “It
`does this by testing the quality of the network connection to each OCA. It will
`connect to the fastest, most reliable OCA first.”19 “The client keeps running these
`tests throughout the video streaming process. The client probes to figure out the
`best way to receive content from the OCA.”20 Thus, through the playback process,
`the Netflix system “determin[es] a traffic metric representative of a traffic load on
`the selected network link.”
`53. Upon information and belief, “responsive to the traffic metric,” the
`Netflix system “regroup[s] flows into second flow lists corresponding to the
`selected network link.” For example, over the course of the playback session, the
`Netflix system redirects flows of content to different OCAs and to different URLs
`on the same OCA (i.e., different “network links”), thereby regrouping the original
`
`
`
`18 http://highscalability.com/blog/2017/12/11/netflix-what-happens-when-you-
`
`press-play.html
`
`19 Id.
`
`20 Id.
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 15 -
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 16 of 92 Page ID #:16
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`set of flows from a given OCA or URL to various Netflix subscribers to a second
`flow list corresponding to a different OCA or URL.
`54. The “regrouping balanc[es] the transmission unit traffic upon the
`network links.” This element is illustrated, for example, by Figure 6B of the ʼ079
`Patent.
`
`
`
`
`
`
`
`
`Source: ʼ079 Patent Specification, Fig. 6B.
`55. For instance, the Netflix system moves flows of content files from one
`OCA or URL to another less congested or otherwise more favorable OCA or URL.
`56. Finally, the Netflix system “transmit[s] the respective second flow list
`over the respective selected network link.” For instance, after the Netflix system
`transitions a flow of a particular content files to a new OCA or URL, it continues to
`transmit all the flows then associated with the new OCA or URL (i.e., the “second
`flow list”) to the many Netflix subscribers who are streaming from that OCA or
`URL at that moment.
`57. At least as of on or around September 26, 2019, when the Broadcom
`Entities informed Netflix of its infringement of the ’079 Patent, and by no later than
`the filing and service of this Complaint, Netflix has had knowledge of the ’079
`Patent and Netflix’s infringement thereof.
`
`
`
`
`
`
`
`692\3399782
`COMPLAINT FOR PATENT INFRINGEMENT
`
`
`- 16 -
`
`
`
`

`

`Case 8:20-cv-00529 Document 1 Filed 03/13/20 Page 17 of 92 Page ID #:17
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`HOPKINS & CARLEY
`ATTO RN EY S AT LAW
`SAN JO SE
` PALO AL TO
`
`58. Netflix also has induced, and continues to induce, direct infringement
`by third-parties of at least claim 1 of the ’079 Patent, at least in the exemplary
`manner described above, by actively encouraging their use of the Netflix system, in
`violation 35 U.S.C. § 271(b).
`59. For example, Netflix has induced, and continues to induce, direct
`infringement of the ’079 Patent by customers and/or end users of client devices
`enabled with the Netflix software application and service. In light of the notice the
`Broadcom Entities provided to Netflix of its infringement of the ’079 Patent,
`Netflix knows that it provides and specifically intends to provide an application for
`use on client devices that, when used as intended with the Netflix streaming service,
`meets the limitations of claim 1 of the ’079 Patent. Netflix knows and specifically
`intends that its end users practice the method recited in claim 1 of the ’079 Patent,
`when using its application and service as intended.
`60. Netflix’s knowing and willful infringement of the ʼ079 Patent has
`caused and continues to cause damage to Avago, and Avago is entitled to recover
`damages sustained as a result of Netflix’s wrongful acts in an amount subject to
`proof at trial.
`
`SECOND CLAIM FOR RELIEF
`(Infringement of U.S. Patent No. 8,259,121)
`61. The Broadcom Entities reallege and incorporate by refe