`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`
`
`
`
` Plaintiff,
`
`
`PASAFESHARE LLC ,
`
`
`
` v.
`
`
`MICROSOFT CORPORATION,
`
` Defendant.
`
`
`
`
`
`
`
`
` Case No. 6:20-cv-00397
`
`
`
` Jury Trial Demanded
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff paSafeShare LLC (“paSafeShare”), by and through its undersigned
`
`counsel, files this Complaint against Microsoft Corporation (“Microsoft”) for patent
`
`infringement of United States Patent Nos. 9,455,961, 9,615,116, and 10,095,848
`
`(collectively, the “patents-in-suit”) (Exhibits 1-3) and alleges as follows:
`
`NATURE OF THE ACTION
`
`1.
`
`This is an action for patent infringement arising under the patent laws of
`
`the United States, 35 U.S.C. §§ 1 et seq.
`
`THE PARTIES
`
`2.
`
`Plaintiff paSafeShare LLC is a limited liability company of New Jersey,
`
`having its principal place of business at 1 Shawnee Court, Colts Neck, New Jersey
`
`07722.
`
`
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 2 of 41
`
`
`
`3.
`
`On information and belief, Defendant Microsoft Corporation is a
`
`corporation organized and existing under the laws of the State of Washington with its
`
`principal place of business located at One Microsoft Way, Redmond, WA 98052.
`
`Microsoft may be served with process through its registered agent for service in Texas:
`
`Corporation Service Company, 211 East 7th Street, Suite 620, Austin, Texas 78701.
`
`4.
`
`On information and belief, since at least November 1993, Microsoft has
`
`been registered to do business in the State of Texas under Texas SOS File Number
`
`0010404606.
`
`JURISDICTION AND VENUE
`
`5.
`
`This Court has subject matter jurisdiction over this action pursuant to 28
`
`U.S.C. §§ 1331 and 1338(a) because this action arises under the patent laws of the United
`
`States, 35 U.S.C. §§ 1 et seq.
`
`6.
`
`Microsoft is subject to this Court’s personal jurisdiction in accordance
`
`with due process and/or the Texas Long Arm Statute because, in part, Microsoft
`
`“[r]ecruits Texas residents, directly or through an intermediary located in this state, for
`
`employment inside or outside this state.” See Tex. Civ. Prac. & Rem. Code § 17.042.
`
`7.
`
`Microsoft has already submitted to the jurisdiction of this Court in patent
`
`litigations bearing docket numbers: 6:19-cv-00399-ADA and 1:19-cv-00874-ADA.
`
`8.
`
`This Court has personal jurisdiction over Microsoft because Microsoft
`
`(directly and/or through its subsidiaries, affiliates, or intermediaries) has committed
`
`and continues to commit acts of direct and indirect infringement in this judicial district
`
`in violation of at least 35 U.S.C. §§ 271(a) and (b). In particular, on information and
`
`2
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 3 of 41
`
`
`
`belief, Microsoft makes, uses, offers for sale, and sells licenses for, or provides access to,
`
`products and/or services that infringe the patents-in-suit, and induces others to use the
`
`infringing products and/or services.
`
`9.
`
`This Court also has personal jurisdiction over Microsoft because Microsoft
`
`has sufficient minimum contacts with this forum as a result of business conducted
`
`within the State of Texas and this judicial district. In particular, this Court has personal
`
`jurisdiction over Microsoft because, inter alia, Microsoft, on information and belief: (1)
`
`has substantial, continuous, and systematic contacts with this State and this judicial
`
`district; (2) owns, manages, and operates facilities in this State and this judicial district;
`
`(3) enjoys substantial income from its operations and sales in this State and this judicial
`
`district; (4) employs Texas residents in this State and this judicial district, and (5) solicits
`
`business and markets products, systems and/or services in this State and this judicial
`
`district including, without limitation, related to the accused instrumentalities.
`
`10. Microsoft has purposefully availed itself of the privileges of conducting
`
`business within this judicial district; has established sufficient minimum contacts with
`
`this judicial district such that it should reasonably and fairly anticipate being hauled
`
`into court in this judicial district; has purposefully directed activities at residents of this
`
`judicial district; and at least a portion of the patent infringement claims alleged in this
`
`Complaint arise out of or are related to one or more of the foregoing activities.
`
`11.
`
`Venue is proper in this judicial district pursuant to 28 U.S.C. § § 1391(b)-
`
`(d) and/or 1400(b). Microsoft is registered to do business in the State of Texas,
`
`3
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 4 of 41
`
`
`
`maintains a regular and established place of business within this judicial district, and
`
`has committed acts of infringement in this judicial district.
`
`12. On information and belief, Microsoft maintains a significant physical
`
`presence in this judicial district, including its corporate sales office locations, retail store
`
`locations, and datacenter locations (hereinafter collectively referred to as “Microsoft’s
`
`Regular and Established Business Locations”).
`
`13. On information and belief, Microsoft operates multiple corporate sales
`
`offices in this judicial district including, without limitation, offices located at 10900
`
`Stonelake Boulevard, Suite 225, Austin, TX, USA 78759,1 and Concord Park II, 401 East
`
`Sonterra Boulevard, Suite 300, San Antonio, TX, USA 78258.2
`
`14. On information and belief, Microsoft markets, offers to sell, and/or sells
`
`products through its corporate sales offices located in this judicial district including, but
`
`not limited to, the accused instrumentalities.
`
`15. On information and belief, Microsoft operates multiple retail stores in this
`
`judicial district including, without limitation, stores located at 3309 Esperanza Crossing,
`
`Suite 104, Austin, TX, USA 78758,3 and 15900 La Cantera Parkway, Suite 6560, San
`
`Antonio, TX, USA 78256.4
`
`16. On information and belief, Microsoft maintains a list of certified learning
`
`partners in this judicial district that offer training solutions and certification in
`
`
`1 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.
`2 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.
`3 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.
`4 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.
`
`4
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 5 of 41
`
`
`
`Microsoft technology.5 For example, on information and belief, at the ONLC Training
`
`Center, 700 Lavaca Street, Suite 1400, Austin, Texas 78701, Microsoft Certified Trainers
`
`offer training and courses in Microsoft Azure Security Technologies.6
`
`17. On information and belief, Microsoft has spent at least tens of millions of
`
`dollars on networking and server infrastructure to support Microsoft Azure located in
`
`the State of Texas and in this judicial district.
`
`18. On information and belief, Microsoft owns and operates multiple
`
`datacenters in this judicial district including, without limitation, data centers located at
`
`5150 Rogers Road, San Antonio, TX 78251; 5200 Rogers Rd, San Antonio, TX 78251; 3823
`
`Weisman Blvd, San Antonio, TX 78251; and 15000 Lambda Drive, San Antonio, TX
`
`782245 (collectively, “Microsoft’s Datacenter Locations”).
`
`19. On information and belief, Microsoft’s Azure global infrastructure
`
`includes 58 regions worldwide. On information and belief, one of those regions is
`
`known as the “South Central US.”
`
`
`
`
`5 See https://www.microsoft.com/en-us/learning/partners.aspx.
`6 See https://www.onlc.com/training/azure/austin-downtown-tx.htm.
`
`5
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 6 of 41
`
`
`
`https://azure.microsoft.com/en-us/global-infrastructure/regions/
`
`20. Microsoft provides a list of Azure products and services available in the
`
`“South Central US” region, including but not limited to Azure Information Protection.
`
`See https://azure.microsoft.com/en-us/global-infrastructure/services/?regions=non-
`
`regional,us-south-central&products=all.
`
`21. On information and belief, a substantial portion of the “South Central US”
`
`region’s Azure network and server infrastructure is housed and operated in Microsoft’s
`
`Datacenter Locations.
`
`6
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 7 of 41
`
`
`
`22. On information and belief, Microsoft has 36 H-1B labor condition
`
`applications for people employed in Austin, Texas.7 On information and belief,
`
`Microsoft has 17 H-1B labor condition applications for people employed in San
`
`Antonio, Texas.8 Employees holding an H-1B visa are employed in a specialty
`
`occupation that requires “theoretical and practical application of a body of highly
`
`specialized knowledge . . . and attainment of a bachelor’s or higher degree in the
`
`specific specialty.” See generally 8 U.S.C. § 1184. As such, Microsoft employees in Austin,
`
`Texas and San Antonio, Texas are highly specialized and important to the operation of
`
`Microsoft.
`
`23. Microsoft lists job openings on its website for positions in this judicial
`
`district.
`
`
`
`7 See
`https://h1bsalary.online/index.php?searchtext=MICROSOFT+CORPORATION&year
`=&minsalary=&state=&worksite_city=AUSTIN%2CTX&job_title=.
`8 See
`https://h1bsalary.online/index.php?searchtext=MICROSOFT+CORPORATION&year
`=&minsalary=&state=&worksite_city=San+Antonio&job_title=.
`
`7
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 8 of 41
`
`https://careers.microsoft.com/us/en/c/data-center-jobs (visited on 4/9/2020).
`
`BACKGROUND
`
`
`
`
`
`24.
`
`The patents-in-suit are the result of paSafeShare’s years of research, design
`
`and development of innovative and proprietary content distribution technologies.
`
`25. Dr. Madhav S. Phadke and Kedar M. Phadke, co-inventors of the patents-
`
`in-suit, have over 50 years of combined experience in software development and
`
`technical consulting.
`
`8
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 9 of 41
`
`
`
`26. Dr. Madhav S. Phadke is a recognized leader in engineering design
`
`optimization and test methods. In the late 1980s, Dr. Phadke authored the first
`
`engineering textbook on robust design methods in the United States, Quality Engineering
`
`Using Robust Design (Prentice Hall, 1989). Dr. Phadke is also an ASQ Fellow and a
`
`recipient of the 2011 IEEE Region 1 Innovation Award.
`
`27.
`
`In 1990, Dr. Phadke founded Phadke Associates, Inc. (“Phadke
`
`Associates”), a global consultancy and software services company. Phadke Associates
`
`develops and markets software tools for systems engineering process improvement and
`
`design and test optimization. Prior to founding Phadke Associates, Dr. Phadke was a
`
`manager in AT&T Bell Labs, a visiting scientist at the IBM Watson Research Center, and
`
`a Research Associate at the Army Math Research Center.
`
`28. Dr. Phadke’s son, Kedar M. Phadke, joined the family business in 2004 as
`
`Vice President of Phadke Associates. Mr. Phadke holds a Bachelor of Science in
`
`Economics from the Wharton School, University of Pennsylvania.
`
`29. While working at Phadke Associates, the father-son duo noticed a
`
`significant oversight in existing content distribution security. In particular, they realized
`
`that while sensitive data could be protected in transmit by various security techniques
`
`(e.g., password-protected documents, access restricted web portals), there was no way
`
`to protect unwanted distribution by the recipient of the data.
`
`30.
`
`In 2010, Dr. Madhav and Kedar Phadke founded paSafeShare LLC to
`
`address the deficiencies in existing content distribution security.
`
`9
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 10 of 41
`
`
`
`31.
`
`In or around mid-2010, Dr. Madhav and Kedar Phadke began developing
`
`technology related to secure content distribution.
`
`32.
`
`The patents-in-suit relate, in part, to the persistent protection of content
`
`distributed within and across firewalls.
`
`United States Patent No. 9,455,961
`
`
`33. On September 27, 2016, the United States Patent and Trademark Office
`
`(“USPTO”) duly and legally issued United States Patent No. 9,455,961 (“the ’961
`
`patent”) entitled “System, Method and Apparatus for Securely Distributing Content” to
`
`inventors Madhav S. Phadke and Kedar M. Phadke. A true and correct copy of the ’961
`
`patent is attached as Exhibit 1.
`
`34.
`
`The ’961 patent is presumed valid under 35 U.S.C. § 282.
`
`35.
`
`paSafeShare owns all rights, title, and interest in the ’961 patent.
`
`United States Patent No. 9,615,116
`
`
`36. On April 4, 2017, the USPTO duly and legally issued United States Patent
`
`No. 9,615,116 (“the ’116 patent) entitled “System, Method and Apparatus for Securely
`
`Distributing Content” to inventors Madhav S. Phadke and Kedar M. Phadke. A true
`
`and correct copy of the ’116 patent is attached as Exhibit 2.
`
`37.
`
`The ’116 patent is presumed valid under 35 U.S.C. § 282.
`
`38.
`
`paSafeShare owns all rights, title and interest in the ’116 patent.
`
`U.S. Patent No. 10,095,848
`
`39. On October 9, 2018, the USPTO duly and legally issued United States
`
`Patent No. 10,095,848 (“the ’848 patent) entitled “System, Method and Apparatus for
`
`10
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 11 of 41
`
`
`
`Securely Distributing Content” to inventors Madhav S. Phadke and Kedar M. Phadke.
`
`A true and correct copy of the ’848 patent is attached as Exhibit 3.
`
`40.
`
`The ’848 patent is presumed valid under 35 U.S.C. § 282.
`
`41.
`
`paSafeShare owns all rights, title and interest in the ‘848 patent.
`
`CLAIMS FOR RELIEF
`
`Count I – Infringement of United States Patent No. 9,455,961
`
`
`
`42.
`
`paSafeShare repeats, realleges, and incorporates by reference, as if fully
`
`set forth here, the preceding paragraphs of this Complaint.
`
`43. Microsoft makes, uses, sells, offers for sale, imports, and/or provides
`
`access to products and/or services for securely distributing content.
`
`44. On information and belief, Microsoft makes, uses, sells, offers to sell,
`
`imports and/or provides access to Azure Information Protection, Microsoft Azure
`
`Rights Management (“Microsoft Azure RMS”), Microsoft Azure Active Directory,
`
`Azure Key Vault, Microsoft Office 365, and Microsoft Azure RMS-enlightened client
`
`programs and services (collectively, the “Microsoft Azure RMS Platform”)9.
`
`
`9 RMS clients include, but are not limited to, Windows 10(x86, x64), Windows 8.1 (x86,
`x64), Windows 8 (x86, x64), Windows Server 2019, Windows Server 2016, Windows
`Server 2012 R2 and Windows Server 2012. See https://docs.microsoft.com/en-
`us/azure/information-protection/requirements#BKMK_SupportedDevices. Computer
`applications that natively support Azure RMS include, but are not limited to, Office 365
`ProPlus, Office 365 Enterprise E5, Office 365 Enterprise E4, Office 365 Enterprise E3,
`Office 365 Government G4, Office 365 Government G3, Office 365 Education A5, Office
`365 Education A4, Office 365 Education A3, Office 365 Education A1, Office 365 Office
`Professional 2019, Office Professional 2016, Office Professional 2013, and Office
`Professional 2010. See https://docs.microsoft.com/en-us/azure/information-
`protection/requirements-applications#footnote-1.
`
`11
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 12 of 41
`
`
`
`45. On information and belief, the Microsoft Azure RMS Platform practices a
`
`method for securely distributing content. Specifically, on information and belief, the
`
`Microsoft Azure RMS Platform uses Microsoft Azure RMS technology to protect
`
`documents and emails using labels and policies defined by an administrator.10
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`
`
`
`10 See https://microsoft.github.io/AzureTipsAndTricks/blog/tip177.html.
`
`12
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 13 of 41
`
`
`
`46. On information and belief, Microsoft Azure RMS is a cloud-based service
`
`running on Microsoft Azure instances.
`
`What is Azure Rights Management?, MICROSOFT AZURE INFORMATION PROTECTION
`DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/what-is-azure-rms (last visited April 2020).
`
`
`
`
`47. On information and belief, the Microsoft Azure RMS Platform generates,
`
`at a server (e.g., a Microsoft-designed physical and/or virtual Hardened Security
`
`Appliance in the Azure cloud) in communication with a network (e.g., the Internet), a
`
`protected document package (PDP) (e.g., protected document) including encrypted
`
`content or a link to encrypted content (e.g., encrypted body and/or encrypted usage
`
`policy), and a Publisher Key (PK) (e.g., AES key) for decrypting said encrypted content
`
`13
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 14 of 41
`
`
`
`for presentation of said content by an authorized user via a Limited Capability Viewer
`
`(LCV) (e.g., Microsoft Office 365 application, such as Word).
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`14
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 15 of 41
`
`
`
`48. On information and belief, the Microsoft Azure RMS Platform generates
`
`software instructions that, when executed by a processor at a user device (e.g., personal
`
`computer) of a proposed authorized user, cause the user device to generate a Content
`
`Consumer License Request (CCLR) identifying said PK (e.g., AES key).
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`
`
`49. On information and belief, the authorized user comprises a user having a
`
`Content Consumer License (CCL) (e.g., Azure RMS use license) compatible with the PK
`
`(e.g., AES key) to enable decryption of the encrypted content (e.g., encrypted body
`
`and/or encrypted usage policy) by the PK included within the PDP (e.g., protected
`
`document).
`
`15
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 16 of 41
`
`
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`
`50. On information and belief, the Microsoft Azure RMS Platform propagates,
`
`via the network (e.g., the Internet), the PDP (e.g., protected document) toward at least
`
`one user.
`
`51. On information and belief, in response to receiving from a proposed
`
`authorized user a CCLR identifying the PK (e.g., AES key), the Microsoft Azure RMS
`
`Platform propagates a CCL (e.g., Azure RMS use license) compatible with the PK
`
`toward the proposed authorized user.
`
`16
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 17 of 41
`
`
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`
`52. On information and belief, the proposed authorized user is an
`
`unauthorized user where received PDP license requirements are not satisfied.
`
`53. On information and belief, the LCV (e.g., Microsoft Office 365 application)
`
`is configured to restrict editing, printing and copying of the content.
`
`
`
`
`
`
`
`17
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 18 of 41
`
`
`
`Configuring Usage Rights For Azure Information Protection, MICROSOFT AZURE
`INFORMATION PROTECTION DOCUMENTATION, available at:
`https://docs.microsoft.com/en-us/azure/information-protection/configure-usage-
`rights (last visited April 2020).
`
`
`
`
`
`18
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 19 of 41
`
`
`
`54. On information and belief, one or more Microsoft subsidiaries and/or
`
`affiliates use the Microsoft Azure RMS Platform in regular business operations.
`
`55. On information and belief, the Microsoft Azure RMS Platform is available
`
`to businesses and individuals throughout the United States.
`
`56. On information and belief, the Microsoft Azure RMS Platform is provided
`
`to businesses and individuals located in the Western District of Texas.
`
`57. On information and belief, Microsoft, without authorization or license, has
`
`been and continues to directly infringe (literally and/or under the doctrine of
`
`equivalents) at least claim 1 of the ’961 patent by making, using, selling, offering for
`
`sale, importing and/or providing access to products and/or services for securely
`
`distributing content, including but not limited to the Microsoft Azure RMS Platform.
`
`58.
`
`By making, using, testing, offering for sale, and/or selling products for
`
`securely distributing content, including but not limited to the Microsoft Azure RMS
`
`Platform, Microsoft has injured paSafeShare and is liable to the Plaintiff for directly
`
`infringing one or more claims of the ’961 patent, including at least claim 1 pursuant to
`
`35 U.S.C. § 271(a)
`
`59. On information and belief, Microsoft also indirectly infringes the ’961
`
`patent by actively inducing infringement under 35 USC § 271(b).
`
`60. On information and belief, Microsoft has been on notice of the ’961 patent
`
`at least as early as the date of service of this Complaint.
`
`61. On information and belief, Microsoft intends to induce patent
`
`infringement by third-party customers and users of the Microsoft Azure RMS Platform
`
`19
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 20 of 41
`
`
`
`and has knowledge that the inducing acts cause infringement or is willfully blind to the
`
`possibility that its inducing acts cause infringement.
`
`62. On information and belief, Microsoft specifically intends and is aware that
`
`the normal and customary use of the accused products infringe the ’961 patent.
`
`Microsoft performs the acts that constitute induced infringement, and induce actual
`
`infringement, with knowledge of the ’961 patent and with the knowledge that the
`
`induced acts constitute infringement. For example, Microsoft provides the infringing
`
`Microsoft Azure RMS Platform, and further provides documentation and training
`
`materials that cause customers and end users of the Microsoft Azure RMS Platform to
`
`use the products in a manner that directly infringe one or more claims of the ’961
`
`patent. By providing instruction and training to customers and end users on how to use
`
`the Microsoft Azure RMS Platform in a manner that directly infringes one or more
`
`claims of the ’961 patent, including at least claim 1, Microsoft specifically intends to
`
`induce infringement of the ’961 patent. On information and belief, Microsoft engages in
`
`such inducement to promote the sales of the Microsoft Azure RMS Platform, e.g.,
`
`through Microsoft user manuals, product support, marketing materials, and training
`
`materials to actively induce the users of the accused products to infringe the ’961 patent.
`
`Accordingly, Microsoft has induced and continues to induce users of the accused
`
`products to use the accused products in their ordinary and customary way to infringe
`
`the ’961 patent, knowing that such use constitutes infringement of the ’961 patent.
`
`20
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 21 of 41
`
`
`
`63. Microsoft’s direct and/or indirect infringement has damaged paSafeShare
`
`and paSafeShare is suffering and will continue to suffer irreparable harm and damages
`
`as a result of this infringement.
`
`Count II – Infringement of United States Patent No. 9,615,116
`
`paSafeShare repeats, realleges, and incorporates by reference, as if fully
`
`64.
`
`set forth here, the preceding paragraphs of this Complaint.
`
`65. Microsoft makes, uses, sells, offers for sale, imports, and/or provides
`
`access to products and/or services for securely distributing content.
`
`66. On information and belief, Microsoft makes, uses, sells, offers to sell,
`
`imports and/or provides access to Azure Information Protection, Microsoft Azure
`
`Rights Management (“Microsoft Azure RMS”), Microsoft Azure Active Directory,
`
`Azure Key Vault, Microsoft Office 365, and Microsoft Azure RMS-enlightened client
`
`programs and services (collectively, the “Microsoft Azure RMS Platform”)11.
`
`67. On information and belief, the Microsoft Azure RMS Platform practices a
`
`method for securely distributing content. Specifically, on information and belief, the
`
`
`11 RMS clients include, but are not limited to, Windows 10(x86, x64), Windows 8.1 (x86,
`x64), Windows 8 (x86, x64), Windows Server 2019, Windows Server 2016, Windows
`Server 2012 R2 and Windows Server 2012. See https://docs.microsoft.com/en-
`us/azure/information-protection/requirements#BKMK_SupportedDevices. Computer
`applications that natively support Azure RMS include, but are not limited to, Office 365
`ProPlus, Office 365 Enterprise E5, Office 365 Enterprise E4, Office 365 Enterprise E3,
`Office 365 Government G4, Office 365 Government G3, Office 365 Education A5, Office
`365 Education A4, Office 365 Education A3, Office 365 Education A1, Office 365 Office
`Professional 2019, Office Professional 2016, Office Professional 2013, and Office
`Professional 2010. See https://docs.microsoft.com/en-us/azure/information-
`protection/requirements-applications#footnote-1.
`
`21
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 22 of 41
`
`
`
`Microsoft Azure RMS Platform uses Microsoft Azure RMS technology to protect
`
`documents and emails using labels and policies defined by an administrator.12
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`68. On information and belief, Microsoft Azure RMS is a cloud-based service
`
`running on Microsoft Azure instances.
`
`
`12 See https://microsoft.github.io/AzureTipsAndTricks/blog/tip177.html.
`
`22
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 23 of 41
`
`What is Azure Rights Management?, MICROSOFT AZURE INFORMATION PROTECTION
`DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/what-is-azure-rms (last visited April 2020).
`
`
`
`
`
`
`69. On information and belief, the Microsoft Azure RMS Platform generates,
`
`at a server (e.g., a Microsoft-designed physical and/or virtual Hardened Security
`
`Appliance in the Azure cloud), a protected document package (PDP) (e.g., protected
`
`document), the PDP including encrypted content (e.g., encrypted body and/or
`
`23
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 24 of 41
`
`
`
`encrypted usage policy), and a Publisher Key (PK) (e.g., AES key) associated with the
`
`encrypted content.
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`
`
`24
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 25 of 41
`
`
`
`70. On information and belief, the PK (e.g., AES key) enables decryption of
`
`the encrypted content for presentation via a Limited Capability Viewer (LCV) (e.g., a
`
`Microsoft Office 365 application, such as Word) of an authorized user device.
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`71. On information and belief, the authorized user device comprises a user
`
`device (e.g., personal computer) having a Content Consumer License (CCL) (e.g., Azure
`
`RMS use license) compatible with the PK (e.g., AES key) to enable presentation via the
`
`LCV (e.g., Microsoft Office 365 application) of locally stored encrypted content from the
`
`PDP (e.g., protected document).
`
`25
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 26 of 41
`
`
`
`Configuring Usage Rights for Azure Information Protection, MICROSOFT AZURE
`INFORMATION PROTECTION DOCUMENTATION, available at:
`https://docs.microsoft.com/en-us/azure/information-protection/configure-usage-
`rights (last visited April 2020).
`
`
`72. On information and belief, the PDP (e.g., protected document) includes
`
`software instructions that, when executed by a processor at a proposed authorized user
`
`device (e.g., personal computer), cause the proposed authorized user device to generate
`
`a Content Consumer License Request (CCLR) identifying the PK (e.g., AES key).
`
`26
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 27 of 41
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`
`
`
`
`73. On information and belief, the Microsoft Azure RMS Platform propagates
`
`the PDP (e.g., protected document) toward at least one authorized or proposed
`
`authorized user device (e.g., personal computer).
`
`74. On information and belief, the Microsoft Azure RMS Platform receives
`
`from a proposed authorized user device (e.g., personal computer) having the PDP (e.g.,
`
`protected document) a CCLR identifying the PK (e.g., AES key).
`
`27
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 28 of 41
`
`How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION
`PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/en-
`us/azure/information-protection/how-does-it-work#walkthrough-of-how-azure-
`rms-works-first-use-content-protection-content-consumption (last visited April
`2020).
`
`
`
`
`
`
`75. On information and belief, the Microsoft Azure RMS Platform propagates
`
`a CCL (e.g., Azure RMS use license) compatible with the PK (e.g., AES key) toward the
`
`proposed authorized user device (e.g., personal computer) if the CCLR is valid.
`
`76. On information and belief, one or more Microsoft subsidiaries and/or
`
`affiliates use the Microsoft Azure RMS Platform in regular business operations.
`
`77. On information and belief, the Microsoft Azure RMS Platform is available
`
`to businesses and individuals throughout the United States.
`
`78. On information and belief, the Microsoft Azure RMS Platform is provided
`
`to businesses and individuals located in the Western District of Texas.
`
`28
`
`
`
`Case 6:20-cv-00397-ADA Document 1 Filed 05/14/20 Page 29 of 41
`
`
`
`79. On information and belief, Microsoft, without authorization or license, has
`
`been and continues to directly infringe (literally and/or under the doctrine of
`
`equivalents) at least claim 1 of the ’116 patent by making, using, selling, offering for
`
`sale, importing and/or providing access to products and/or services for securely
`
`distributing content, including but not limited to the Microsoft Azure RMS Platform.
`
`80.
`
`By making, using, testing, offering for sale, and/or selling products for
`
`securely distributing content, including but not limited to the Microsoft Azure RMS
`
`Platform, Microsoft has injured paSafeShare and is liable to the Plaintiff for directly
`
`infringing one or more claims of the ’116 patent, including at least claim 1 pursuant to
`
`35