`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`AUSTIN DIVISION
`
`BYTEWEAVR, LLC,
`
`Plaintiff,
`
`v.
`
`CLOUDERA, INC.,
`
`Defendant.
`
`----------------------------------------------------------
`
`CLOUDERA, INC.,
`
`CIVIL ACTION NO. 1:24-cv-00261-RP
`
`Counter-Plaintiff,
`
`
`
`v.
`
`BYTEWEAVR, LLC; AI-CORE
`TECHNOLOGIES, LLC a.k.a. AI CORE
`TECHNOLOGIES LLC; ASCEND
`INNOVATION MANAGEMENT, LLC;
`ASCEND IP, LLC; and MIND FUSION, LLC,
`
`Counter-Defendants.1
`
`
`
`CLOUDERA, INC.’S FIRST AMENDED COUNTERCLAIMS AGAINST
`COUNTERCLAIM DEFENDANTS
`
`Pursuant to Federal Rule of Civil Procedure 13, counterclaim plaintiff Cloudera, Inc.
`
`(“Cloudera”) asserts the following counterclaims against counterclaim defendant and plaintiff
`
`Byteweavr, LLC (“Byteweavr”), and counterclaim defendants AI-Core Technologies LLC a.k.a.
`
`
`1 Counterclaim plaintiff Cloudera, Inc. named Republic Registered Agent, LLC a.k.a. Republic Register Agent, LLC
`(“RRA”) as a counterclaim defendant in its original set of counterclaims. ECF # 26. Republic Registered Agent, LLC
`failed to respond and is in default. To simplify the issues, Cloudera, Inc. does not assert its First Amended
`Counterclaims against RRA.
`
`
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 2 of 84
`
`AI Core Technologies, LLC (“AICT”); Ascend Innovation Management, LLC (“AIM”); Ascend
`
`IP, LLC (“AIP”); and Mind Fusion, LLC (“Mind Fusion”) (AICT, AIM, AIP, and Mind Fusion
`
`collectively as the “Controlling Entities”) (all counterclaim defendants collectively as the
`
`“Counterclaim-Defendants”), involving U.S. Patent No. 6,839,733 (the “’733 patent”), U.S. Patent
`
`No. 7,949,752 (the “’752 patent”), U.S. Patent No. 6,862,488 (the “’488 patent”), U.S. Patent No.
`
`6,965,897 (the “’897 patent”), U.S. Patent No. 6,999,961 (the “’961 patent”), U.S. Patent No.
`
`7,082,474, (the “’474 patent”), U.S. Patent No. 8,275,827 (the “’827 patent”), and U.S. Reissued
`
`Patent No. RE42,153 (the “’153 patent”) (collectively referred to as the “Asserted Patents”), as
`
`follows:
`
`PARTIES
`
`1.
`
`According to records of the Texas Secretary of State (“TSOS”) Byteweavr is a
`
`Texas entity with a principal place of business located at 17350 State Hwy 249 Ste 220 Houston,
`
`Texas, with its registered agent as RRA, also having an address located at 17350 State Hwy 249
`
`Ste 220 Houston, Texas. According to filings with the United States Patent and Trademark Office
`
`(“PTO”), Byteweavr is listed as the current assignee of the Asserted Patents. Upon information
`
`and belief, Byteweavr does not actually own any and/or all substantial rights and title to the
`
`Asserted Patents, because it is a mere fictious strawman entity holding and asserting the Asserted
`
`Patents for other entities who actually own and/or have other substantial rights in the Asserted
`
`Patents, and/or share an interest in obtaining extortion payments from filing litigation. Upon
`
`information and belief, Byteweavr was created for the sole purpose of standing in the place of and
`
`shielding its members and others, including the Controlling Entities, from liability for asserting
`
`bad faith and meritless patent infringement claims to extort settlement fees from entities such as
`
`Cloudera. Essentially, Byteweavr is a corporate shell that is a tool to carry out the actions of other
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`2
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 3 of 84
`
`parties and/or a piece of a larger enterprise working together to orchestrate their bad faith and
`
`meritless patent extortion scheme. Byteweavr has already appeared for all purposes in the case.
`
`2.
`
`Mind Fusion is the sole managing member of Byteweavr and can direct and control
`
`the operations and decisions of Byteweavr, including the decision to form Byteweavr and file this
`
`action. According to Byteweavr, Mind Fusion is a Texas limited liability company. ECF # 32.
`
`According to records of the Washington Secretary of State (“WSOS”), Mind Fusion has its
`
`principal place of business located at 9407 NE Vancouver Mall Dr., Ste. 104 # 1253, Vancouver,
`
`WA 98662, with its registered agent as RRA, also having an address located at 9407 NE Vancouver
`
`Mall Dr Ste 104, Vancouver, WA, 98662. But according to records of the TSOS, as shown in
`
`Byteweavr’s Texas Certificate of Formation, Mind Fusion also has an address of 7683 SE 27 ST
`
`#476, Mercer Island, WA 98040. By filing its motion to dismiss, Mind Fusion has appeared for
`
`all purposes in this case.
`
`3.
`
`Upon information and belief, Mind Fusion was created for the sole purpose of
`
`obtaining patents and asserting those patents, through its corporate subsidiaries, related entities,
`
`and/or entities in their patent extortion enterprise, such as Byteweavr, in bad faith and meritless
`
`actions to extort settlement fees from entities such as Cloudera, while simultaneously shielding its
`
`members and others, including the Controlling Entities, from liability for such bad faith and
`
`meritless patent infringement claims by intentionally avoiding filing a petition with the Court. As
`
`part of that scheme, Mind Fusion obtained, and granted security interests to and a profit share in,
`
`certain of the Asserted Patents. Mind Fusion then assigned those patents to Byteweavr.
`
`Essentially, Mind Fusion is a corporate shell that is a tool to carry out the actions of other parties,
`
`a piece of a larger enterprise working together to orchestrate their scheme, and/or at least plays a
`
`directing and/or controlling role in the greater scheme of asserting bad faith, meritless patent
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`3
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 4 of 84
`
`claims without liability. According to Byteweavr, Mind Fusion’s sole governor, member, and/or
`
`owner is Ascend Innovation Management, LLC (AIM). But according to the WSOS’s records,
`
`both AIM and James Weisfield are governors, members, and/or owners of Mind Fusion.
`
`4.
`
`According to records of the TSOS, AICT is a Texas limited liability company
`
`having its principal place of business located at 17350 State Hwy 249, Suite 220, Houston, Texas
`
`77064, having its registered agent as RRA, also with an address located at 17350 State Hwy 249,
`
`Suite 220, Houston, Texas 77064. By filing its motion to dismiss, AICT has appeared for all
`
`purposes in this case.
`
`5.
`
`Upon information and belief, AICT was created for the sole purpose of obtaining
`
`patents and asserting those patents, through its corporate subsidiaries, related entities, and/or
`
`entities in their patent extortion enterprise, such as Byteweavr, in bad faith and meritless actions
`
`to extort settlement fees from entities such as Cloudera, while simultaneously shielding its
`
`members and others, including the Controlling Entities, from liability for such bad faith and
`
`meritless patent infringement claims by intentionally avoiding filing a petition with the Court. As
`
`part of that scheme, AICT obtained certain of the Asserted Patents from entities associated with
`
`Intellectual Ventures. Upon information and belief, AICT entered agreements granting security
`
`interests in and profit shares from, certain assertions of the Asserted Patents. AICT then assigned
`
`those patents to Byteweavr. Essentially, AICT is a corporate shell that is a tool to carry out the
`
`actions of other parties, a piece of a larger enterprise working together to orchestrate their scheme,
`
`and/or at least plays a directing and/or controlling role in the greater scheme of asserting bad faith,
`
`meritless patent claims without liability. According to records of the TSOS, AICT’s sole governor,
`
`member, and/or owner is Ascend Innovation Management, LLC (AIM).
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`4
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 5 of 84
`
`6.
`
`As a member manager, AIM directs and controls the operations and decisions of
`
`AICT and Mind Fusion, and thus Byteweavr, including the decision to form Mind Fusion, AICT,
`
`and Byteweavr, and to file this action. According to the records of the WSOS, AIM is a
`
`Washington limited liability company with its principal place of business located at 7683 SE 27th
`
`St # 476, Mercer Island, WA, 98040, with its registered agent as RRA having an address located
`
`at 9407 NE Vancouver Mall Dr Ste 104, Vancouver, Washington 98662. By filing its motion to
`
`dismiss, AIM has appeared for all purposes in this case.
`
`7.
`
`Upon information and belief, AIM was created for the sole purpose of obtaining
`
`patents and asserting those patents, through its corporate subsidiaries, related entities, and/or
`
`entities in their patent extortion enterprise, such as AICT, Mind Fusion, and Byteweavr, in bad
`
`faith and meritless actions to extort settlement fees from entities such as Cloudera, while
`
`simultaneously shielding its members and others, including the Controlling Entities, from liability
`
`for such bad faith and meritless patent infringement claims by intentionally avoiding filing a
`
`petition with the Court. Essentially, AIM is a corporate shell that is a tool to carry out the actions
`
`of other parties, a piece of a larger enterprise working together to orchestrate their scheme, and/or
`
`at least plays a directing and/or controlling role in the greater scheme of asserting bad faith,
`
`meritless patent claims without liability. According to the records of the WSOS, AIM’s sole
`
`principals, governors, members, and/or owners are James Weisfield and Riad Chummun.
`
`According to their LinkedIn pages, both James Weisfield and Riad Chummun are former
`
`employees of Intellectual Ventures, a patent assertion and monetization firm that previously owned
`
`the Asserted Patents.
`
`8.
`
`According to records of the WSOS, AIP is a Washington limited liability company,
`
`also having its address located at 7683 SE 27th St #476, Mercer Island, WA 98040, having its
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`5
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 6 of 84
`
`registered agent as RRA with an address located at 9407 NE Vancouver Mall Dr Ste. 104,
`
`Vancouver, Washington 98662. AIP very likely is the mastermind directing and controlling the
`
`other Counterclaim-Defendants, orchestrating their collective scheme of asserting bad faith,
`
`meritless patent claims without liability to extort settlement fees from entities such as Cloudera.
`
`According to records of the WSOS, both James Weisfield and Riad Chummun are the sole
`
`principals, owners, governors, and/or members of AIP. By filing its motion to dismiss, AIP has
`
`appeared for all purposes in this case.
`
`FACTUAL ALLEGATIONS
`
`9.
`
`Upon information and belief, the Controlling Entities are alter egos of Byteweavr,
`
`and/or all operate as a single business enterprise in collusion with Byteweavr, as part of an unfair,
`
`deceptive scheme to assert bad faith, meritless, sham litigation, to achieve an inequitable and
`
`damaging result against Cloudera and its customers, i.e., Cloudera incurring unrecoverable costs
`
`to defend this action, which will ultimately be passed down to consumers.
`
`A. The Counterclaim-Defendant Entities:
`
`10.
`
`According to records of the Texas Secretary of State (“TSOS”) Byteweavr is a
`
`Texas entity with a principal place of business located at 17350 State Hwy 249 Ste 220 Houston,
`
`Texas, with its registered agent as RRA, also having an address located at 17350 State Hwy 249
`
`Ste 220 Houston, Texas. According to filings with the United States Patent and Trademark Office
`
`(“PTO”), Byteweavr is listed as the current assignee of the Asserted Patents. Upon information
`
`and belief, Byteweavr does not actually own any and/or all substantial rights and title to the
`
`Asserted Patents, because it is a mere fictious strawman entity holding and asserting the Asserted
`
`Patents for other entities who actually own and/or have other substantial rights in the Asserted
`
`Patents, and/or share an interest in obtaining extortion payments from filing litigation. Upon
`
`information and belief, Byteweavr was created for the sole purpose of standing in the place of and
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`6
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 7 of 84
`
`shielding its members and others, including the Controlling Entities, from liability for asserting
`
`bad faith and meritless patent infringement claims to extort settlement fees from entities such as
`
`Cloudera. Essentially, Byteweavr is a corporate shell that is a tool to carry out the actions of other
`
`parties and/or a piece of a larger enterprise working together to orchestrate their bad faith and
`
`meritless patent extortion scheme. Byteweavr has already appeared for all purposes in the case.
`
`11. Mind Fusion is the sole managing member of Byteweavr and can direct and control
`
`the operations and decisions of Byteweavr, including the decision to form Byteweavr and file this
`
`action. According to Byteweavr, Mind Fusion is a Texas limited liability company. ECF # 32.
`
`According to records of the Washington Secretary of State (“WSOS”), Mind Fusion has its
`
`principal place of business located at 9407 NE Vancouver Mall Dr., Ste. 104 # 1253, Vancouver,
`
`WA 98662, with its registered agent as RRA, also having an address located at 9407 NE Vancouver
`
`Mall Dr Ste 104, Vancouver, WA, 98662. But according to records of the TSOS, as shown in
`
`Byteweavr’s Texas Certificate of Formation, Mind Fusion also has an address of 7683 SE 27 ST
`
`#476, Mercer Island, WA 98040. By filing its motion to dismiss, Mind Fusion has appeared for
`
`all purposes in this case.
`
`12.
`
`Upon information and belief, Mind Fusion was created for the sole purpose of
`
`obtaining patents and asserting those patents, through its corporate subsidiaries, related entities,
`
`and/or entities in their patent extortion enterprise, such as Byteweavr, in bad faith and meritless
`
`actions to extort settlement fees from entities such as Cloudera, while simultaneously shielding its
`
`members and others, including the Controlling Entities, from liability for such bad faith and
`
`meritless patent infringement claims by intentionally avoiding filing a petition with the Court. As
`
`part of that scheme, Mind Fusion obtained, and granted security interests to and a profit share in,
`
`certain of the Asserted Patents. Mind Fusion then assigned those patents to Byteweavr.
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`7
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 8 of 84
`
`Essentially, Mind Fusion is a corporate shell that is a tool to carry out the actions of other parties,
`
`a piece of a larger enterprise working together to orchestrate their scheme, and/or at least plays a
`
`directing and/or controlling role in the greater scheme of asserting bad faith, meritless patent
`
`claims without liability. According to Byteweavr, Mind Fusion’s sole governor, member, and/or
`
`owner is Ascend Innovation Management, LLC (AIM). But according to the WSOS’s records,
`
`both AIM and James Weisfield are governors, members, and/or owners of Mind Fusion.
`
`13.
`
`According to records of the TSOS, AICT is a Texas limited liability company
`
`having its principal place of business located at 17350 State Hwy 249, Suite 220, Houston, Texas
`
`77064, having its registered agent as RRA, also with an address located at 17350 State Hwy 249,
`
`Suite 220, Houston, Texas 77064. By filing its motion to dismiss, AICT has appeared for all
`
`purposes in this case.
`
`14.
`
`Upon information and belief, AICT was created for the sole purpose of obtaining
`
`patents and asserting those patents, through its corporate subsidiaries, related entities, and/or
`
`entities in their patent extortion enterprise, such as Byteweavr, in bad faith and meritless actions
`
`to extort settlement fees from entities such as Cloudera, while simultaneously shielding its
`
`members and others, including the Controlling Entities, from liability for such bad faith and
`
`meritless patent infringement claims by intentionally avoiding filing a petition with the Court. As
`
`part of that scheme, AICT obtained certain of the Asserted Patents from entities associated with
`
`Intellectual Ventures. Upon information and belief, AICT entered agreements granting security
`
`interests in and profit shares from, certain assertions of the Asserted Patents. AICT then assigned
`
`those patents to Byteweavr. Essentially, AICT is a corporate shell that is a tool to carry out the
`
`actions of other parties, a piece of a larger enterprise working together to orchestrate their scheme,
`
`and/or at least plays a directing and/or controlling role in the greater scheme of asserting bad faith,
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`8
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 9 of 84
`
`meritless patent claims without liability. According to records of the TSOS, AICT’s sole governor,
`
`member, and/or owner is Ascend Innovation Management, LLC (AIM).
`
`15.
`
`As a member manager, AIM directs and controls the operations and decisions of
`
`AICT and Mind Fusion, and thus Byteweavr, including the decision to form Mind Fusion, AICT,
`
`and Byteweavr, and to file this action. According to the records of the WSOS, AIM is a
`
`Washington limited liability company with its principal place of business located at 7683 SE 27th
`
`St # 476, Mercer Island, WA, 98040, with its registered agent as RRA having an address located
`
`at 9407 NE Vancouver Mall Dr Ste 104, Vancouver, Washington 98662. By filing its motion to
`
`dismiss, AIM has appeared for all purposes in this case.
`
`16.
`
`Upon information and belief, AIM was created for the sole purpose of obtaining
`
`patents and asserting those patents, through its corporate subsidiaries, related entities, and/or
`
`entities in their patent extortion enterprise, such as AICT, Mind Fusion, and Byteweavr, in bad
`
`faith and meritless actions to extort settlement fees from entities such as Cloudera, while
`
`simultaneously shielding its members and others, including the Controlling Entities, from liability
`
`for such bad faith and meritless patent infringement claims by intentionally avoiding filing a
`
`petition with the Court. Essentially, AIM is a corporate shell that is a tool to carry out the actions
`
`of other parties, a piece of a larger enterprise working together to orchestrate their scheme, and/or
`
`at least plays a directing and/or controlling role in the greater scheme of asserting bad faith,
`
`meritless patent claims without liability. According to the records of the WSOS, AIM’s sole
`
`principals, governors, members, and/or owners are James Weisfield and Riad Chummun.
`
`According to their LinkedIn pages, both James Weisfield and Riad Chummun are former
`
`employees of Intellectual Ventures, a patent assertion and monetization firm that previously owned
`
`the Asserted Patents.
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`9
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 10 of 84
`
`17.
`
`According to records of the WSOS, AIP is a Washington limited liability company,
`
`also having its address located at 7683 SE 27th St #476, Mercer Island, WA 98040, having its
`
`registered agent as RRA with an address located at 9407 NE Vancouver Mall Dr Ste. 104,
`
`Vancouver, Washington 98662. AIP very likely is the mastermind directing and controlling the
`
`other Counterclaim-Defendants, orchestrating their collective scheme of asserting bad faith,
`
`meritless patent claims without liability to extort settlement fees from entities such as Cloudera.
`
`According to records of the WSOS, both James Weisfield and Riad Chummun are the sole
`
`principals, owners, governors, and/or members of AIP. By filing its motion to dismiss, AIP has
`
`appeared for all purposes in this case.
`
`18.
`
`AIP “is a full-service IP monetization firm helping clients strategically acquire,
`
`develop, sell, enforce and license patent portfolios” (https://www.linkedin.com/in/jweisfield/),
`
`including asserting bad faith and meritless patent infringement claims.
`
`19.
`
`20.
`
`AIP touts itself to be power a patent assertion powerhouse.
`
`On its website (https://ascendip.com/), AIP currently states:
`
`a. “Currently managing thousands of patent assets across multiple tech sectors,
`
`Ascend IP helps patent owners of all sizes implement leading portfolio
`
`monetization programs. Ascend delivers extraordinary results for patent
`
`inventors, owners and investors through world-class strategy, execution and
`
`service.”
`
`b.
`
`
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`10
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 11 of 84
`
`c.
`
`
`
`d. “At Ascend, our principals stand at the pinnacle of the global patent landscape,
`
`recognized as top-tier patent sellers and market makers throughout the past
`
`decade. Notably, during our previous tenures, we orchestrated the sale of an
`
`impressive 22,000 patent assets, encompassing 7,000 active cases, with a
`
`remarkable 10% of these active patents becoming pivotal in litigation
`
`proceedings. Our expertise lies in strategically positioning patents to buyers
`
`with protective, defensive, and assertive needs. Particularly skilled at repeat
`
`sales for large portfolio owners, we’ve sold to operating companies, non-
`
`practicing entities, patent pools, and risk mitigators.”
`
`e. “Over nearly two decades, we’ve fostered connected relationships within an
`
`extensive network of patent buyers, esteemed law firms, proficient brokers, and
`
`leading aggregators. A recent survey underscores our prominence, revealing
`
`that 7 out of the top 10 patent monetization firms have sourced patents from our
`
`offerings.”
`
`f. “When it’s time to enforce your patents, you need dedicated resources and a
`
`well thought-out strategy. Ascend IP is an ideal partner you can trust through
`
`the often challenging enforcement journey. Let us help protect your rights and
`
`business.”
`
`g. “While litigation is often complex and expensive, it often becomes an essential
`
`route to showcase the value in patents. Ascend navigates the intricate terrain of
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`11
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 12 of 84
`
`litigation with expertise and precision. Collaborating closely with esteemed law
`
`firms worldwide, we specialize in crafting and implementing enforcement
`
`programs tailored to your patents and business needs. Ascend is dedicated to
`
`advising clients on strategies that mitigate risk exposure while maximizing the
`
`probability of success. Additionally, our ability to source enforcement capital
`
`removes potential barriers to pursuing valuable claims.”
`
`h. “In the past year, Ascend's principals have overseen nearly four dozen client
`
`cases. Our experience spans district courts, the Patent Trial and Appeal Board,
`
`and the International Trade Commission. Moreover, we've pursued injunctions
`
`and restraining orders against parties selling infringing products on prominent
`
`e-commerce platforms.”
`
`i. “Collaborate with Ascend IP to unleash the power of your inventions through
`
`robust and persistent licensing campaigns. From strategy inception, through
`
`value demonstration, to deal structure, negotiation and closure, Ascend IP
`
`delivers maximum licensing value for your portfolio.”
`
`j. “Patent licensing is a mutually beneficial arrangement with the patent owner
`
`reaping deserved compensation for their innovation, while the licensee gains
`
`permitted access to commercialize the invention. Ascend excels in unlocking
`
`the licensing potential of our clients’ patents. Our proficiency lies in
`
`developing, showcasing, and deriving optimal licensing value for your
`
`intellectual property. We build infringement cases, present compelling
`
`arguments to companies using or considering use of your invention and
`
`negotiate equitable terms for their usage.”
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`12
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 13 of 84
`
`k. “Ascend’s principals helped generate billions of dollars in settlement fees over
`
`their careers. Since forming Ascend, we've achieved an impressive run rate,
`
`closing a record number of deals for our esteemed clients. Notably, we have
`
`closed twice as many licenses through amicable, out-of-litigation negotiations
`
`compared to in-litigation deals. Our principals excel at drafting, negotiating,
`
`and closing licensing contracts, ensuring a seamless and valuable process for
`
`our clients.”
`
`l. “Overseeing litigation cases in jurisdictions across the country.”
`
`21.
`
`In short, all Counterclaim-Defendant entities are ultimately owned and managed by
`
`two people, James Weisfield and Riad Chummun.
`
`22.
`
`Upon information and belief, based on all the foregoing, AIP created or directed
`
`the creation of AIM, AICT, Mind Fusion, and Byteweavr, and are directed and controlled by AIP.
`
`Moreover, according to AIP’s own marketing, AIP is “overseeing” and controlling this litigation.
`
`B. Counterclaim-Defendants’ Patent Assertion Enterprise:
`
`23.
`
`Upon information and belief, Counterclaim-Defendants work as alter egos of
`
`and/or in collusion with each other in a single enterprise to use their corporate structure as part of
`
`an unfair scheme to achieve an inequitable result. These entities obtain patents and assert bad
`
`faith, meritless, sham patent actions to extort settlement fees from practicing entities, such as
`
`Cloudera, in amounts that are modest or small relative to the extremely high cost of patent litigation
`
`without facing liability, knowing full well they do not have a bona fide intent to legitimately litigate
`
`the claims or ultimately win on the merits and that entities, such as Cloudera, will not be able to
`
`recover any fees in defending against the action. Stated otherwise, the Controlling Entities
`
`collectively assert, by intentionally avoiding filing a petition with the Court through Byteweavr,
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
`
`
`13
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 14 of 84
`
`meritless, bad faith, sham patent actions with the intent to have no liability for the chance to obtain
`
`nuisance value settlement fees. This is evidenced by the chain of control and ownership of
`
`Counterclaim-Defendant entities, leading back to only two individuals Weisfield and Chummun,
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`the entities’ collective intended business purposes of obtaining and enforcing patents for monetary
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`gain, straw-man patent assignments between related companies, the companies’ shared places of
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`doing business and lack of assets and personnel, and the baseless claims asserted against Cloudera
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`in this action.
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`24.
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`Counterclaim-Defendants’ corporate officers and/or managers, to the extent there
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`are any, are the same. According to records of the TSOS and WSOS, they are either entities within
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`their enterprise, or individuals Weisfield and Chummun. Byteweavr identifies in its initial
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`disclosures individuals Weisfield and Chummun as “Authorized Representative[s] of ByteWeavr
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`LLC” having “knowledge of the acquisition of the patents-in-suit and the business practices of
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`ByteWeavr LLC.” And as such, all corporate filings, patent assignments, and security interests
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`for these companies are signed by either Weisfield or Chummun. For example, Weisfield signed
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`the AIP and AIM corporate records filed with the WSOS, and patent assignments recordations
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`filed with PTO assigning the patents from AICT to Byteweavr.
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`25.
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`All of Counterclaim-Defendants’ daily operations are also very likely not separate
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`from each other. Indeed, AIP personnel and owners Weisfield and Chummun use common phone
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`numbers, email addresses, and principal addresses amongst the entities to carry out the patent
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`assertion business of those entities other than AIP. For example, in a May 10, 2023, filing with
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`the WSOS, AIM lists under its “principal office” an email address of “jim@ascendip.com”, a
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`phone number of 206-920-5080, and a physical address at 7683 SE 27th St #476, Mercer Island,
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`WA, 98040-2804, USA. In an April 30, 2023, filing with the Washington Secretary of State, AIP
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
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`
`14
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`
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`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 15 of 84
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`lists under its “principal office” an email address of “licensing@ascendip.com”, a phone number
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`of 206-920-5080, and a physical address at 7683 SE 27th St #476, Mercer Island, WA, 98040-
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`2804, USA. According to a court filing in a another matter, in an October 9, 2023, letter from Mr.
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`Chummun at AIP, with a cc: to Mr. Weisfield, to Crestron Electronics, Inc. (a party also sued by
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`entities related to Mind Fusion, AIM, and AIP) regarding a third-party, ThinkLogix, the letter head
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`listed an email address of “licensing@ascendip.com”, a phone number of 425-449-9865, and a
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`physical address at 7683 SE 27th St #476, Mercer Island, WA, 98040-2804, USA. It also appears
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`the phone numbers listed in the filings and emails are those of Weisfield and Chummun.
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`26.
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`How AIP operated through ThinkLogix in that case, is exactly how AIP now
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`operates through AIM, AICT, Mind Fusion, and Byteweavr in this case.
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`27.
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`Assignment and security interest agreements for the Asserted Patents filed with the
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`USPTO all follow the same format and share substantially identical language, further indicating
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`collusion of operations between the entities.
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`28.
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`The entities also all share common principal addresses, and commonly list RRA as
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`their registered agent for service, as shown in the chart below:
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`Entity
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`Principal Location
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`Agent
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`Agent Adress
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`AIP
`
`7683 SE 27th St #476,
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`RRA
`
`9407 NE Vancouver Mall Dr Ste. 104,
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`(Wash. LLC)
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`Mercer Island, WA 98040
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`Vancouver, Washington 98662
`
`AIM
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`7683 SE 27th St # 476,
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`RRA
`
`9407 NE Vancouver Mall Dr Ste 104,
`
`(Wash. LLC)
`
`Mercer Island, WA, 98040
`
`Vancouver, Washington 98662
`
`AICT
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`17350 State Hwy 249, Suite
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`RRA
`
`17350 State Hwy 249, Suite 220,
`
`(Texas LLC)
`
`220, Houston, Texas 77064,
`
`Houston, Texas 77064
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
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`
`15
`
`
`
`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 16 of 84
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`Mind Fusion
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`9407 NE Vancouver Mall
`
`RRA
`
`9407 NE Vancouver Mall Dr Ste 104,
`
`(Texas LLC)
`
`Dr., Ste. 104 # 1253,
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`Vancouver, Washington 98662
`
`Vancouver, WA 98662; and
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`7683 SE 27 ST #476,
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`Mercer Island, WA 98040
`
`Byteweavr
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`17350 State Hwy 249 Ste
`
`RRA
`
`17350 State Hwy 249, Suite 220,
`
`(Texas LLC)
`
`220 Houston, Texas
`
`Houston, Texas 77064
`
`
`
`29.
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`Upon information and belief, AIM, Mind Fusion, AICT, and Byteweavr, among
`
`other entities, do not have sufficient capital to operate their businesses, including paying patent
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`maintenance fees and satisfying any liabilities that Byteweavr may incur during litigation from
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`adverse decisions, such as court costs or awards of attorneys’ fees or monetary sanctions.
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`30.
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`Upon information and belief, Counterclaim-Defendants entered a contingency fee
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`arrangement to prosecute this litigation that relieves Byteweavr and the Controlling Entities of
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`obligations to incur attorneys’ fees and litigation expenses prior to obtaining the extortion
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`settlement fees they seek. For example, Byteweavr’s law firm in this action, Bragalone Olejko
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`Saad PC markets that they “prefer alternative fee arrangements that allow [them] to share in the
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`risk and recovery of the case.” (https://bosfirm.com/faq.) For all other liabilities, upon further
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`information and belief, AIP, AIM, Mind Fusion, and/or AICT, fund all or at least portions of
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`Byteweavr’s operations and pool their resources to support their enterprise of asserting bad faith,
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`meritless, sham patent infringement claims without liability.
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`31.
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`According to PTO records, Byteweavr is the assignee of at least 87 U.S. patent
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`properties. The USPTO maintenance fees range from $2,000 to $7,700 per patent at approximately
`
`DEFENDANT CLOUDERA’S FIRST AMENDED COUNTERCLAIMS
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`
`16
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`
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`Case 1:24-cv-00261-DAE Document 59 Filed 08/22/24 Page 17 of 84
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`4-year intervals, causing great cost to Byteweavr to maintain its patent portfolio. On information
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`and belief, AIP, AIM, Mind Fusion, and/or