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Showing posts with label League of Legends. Show all posts
Showing posts with label League of Legends. Show all posts
On May 15, 2018, the Patent Trial and Appeal Board (the “PTAB”) instituted two Inter Partes Review (“IPR”) proceedings against U.S. 5,822,523 (the “’523 Patent”).  The ’523 Patent generally relates to group messaging in interactive applications.  The petitioner is Riot Games, Inc. (“Riot Games”), maker of popular titles like League of Legends The patent owner is Paltalk Holdings, Inc. (“Paltalk”).  From 2006-2009, the ’523 Patent was asserted by Paltalk in patent infringement cases against Microsoft, Sony, Activision Blizzard, NCsoft, Jagex, and Turbine Inc., among others.



Claim 1 of the ’523 Patent reads:
1. A method for providing group messages to a plurality of host computers connected over a unicast wide area communication network, comprising the steps of:

   providing a group messaging server coupled to said network, said server communicating with said plurality of host computers using said unicast network and maintaining a list of message groups, each message group containing at least one host computer;

   sending, by a plurality of host computers belonging to a first message group, messages to said server via said unicast network, said messages containing a payload portion and a portion for identifying said first message group;

   aggregating, by said server in a time interval determined in accordance with a predefined criterion, said payload portions of said messages to create an aggregated payload;

   forming an aggregated message using said aggregated payload; and

   transmitting, by said server via said unicast network, said aggregated message to a recipient host computer belonging to said first message group.
Both Riot Games and Paltalk agree that the ’523 Patent expired.  While it might seem strange for Riot Games to attack the validity of an expired patent, a patent owner may sue for damages that were incurred when their now-expired patent was valid, though they cannot recover damages that were incurred more than six years prior to the filing of the lawsuit.  As it appears that the ’523 Patent expired in 2016, Paltalk could potentially file patent infringement lawsuits up until around 2022, but only for damages that they incurred prior to 2016, and only so long as their damages were in the six years before they filed the lawsuits.  For example, if Paltalk sued a game company for patent infringement on Jan. 1, 2021, they could recover damages from Jan. 1, 2015, up until the date the ’523 Patent expired in 2016.
Parallel Networks, LLC v. Riot Games, Inc.
United States District Court for the District of Delaware
Case No.: 13-183 (RGA); filed on February 1, 2013.

This is a patent infringement case in which Parallel Network ("Plaintiff") is suing Riot Games ("Defendant") for direct infringement, inducing infringement, or contributing to an infringing use.  The patents in question are United States Patent No: 7,188,145 ("the '145 patent") and divisional U.S. Pat. No: 7,730,262 ("the '262 patent").  These patents were issued to Plaintiff on March 6, 2007, and June 1, 2010, respectively. 

The patents are for a "method and system for dynamic distributed data caching".  Specifically, these patents are for software that allows for peer-to-peer data caching to enable more effective use of bandwidth as well increasing download speeds.  The software utilizes the "always-on" nature of computers and unused processor power to create a "cache community".  This allows users to access stored content without having to retrieve it from a potentially overly burdened origin server.

Plaintiff alleges that Riot Games is infringing upon its patent through its products, specifically the online game "League of Legends".  Plaintiff further alleges that the League of Legends download client utilizes the patents in question which causes Defendant's customers to infringe upon Plaintiff's patents.  In this way, Defendant is directly infringing upon Plaintiff's patents as well as inducing and contributing to the infringement of said patents.

On March 28, 2013, Defendant filed a motion to dismiss Plaintiff's inducement and contributory infringement claims.  In an Opening Brief in Support of Motion to Dismiss, Defendant alleges that Plaintiff has not sufficiently alleged facts to show that there was intent on the part of Riot Games to infringe the patents in question.  Defendant alleges that Plaintiff simply makes a recitation of the elements necessary for an infringement action rather than actually detailing how Defendant's conduct infringed upon its patents.  Furthermore, Defendant alleges that it did not have pre-suit knowledge of the patents, and even if it did infringe upon the patents, it should not be open to any pre-suit damages.  On April 15, 2013, Plaintiff filed an Answering Brief in Opposition to Defendant's Motion to Dismiss.  In its brief, Plaintiff cites case law which states that, "'if a complaint sufficiently identifies . . . the patent at issue and the allegedly infringing conduct, a defendant's receipt of the complaint and decision to continue its conduct despite the knowledge gleaned from the complaint' sufficiently pleads a prospective claim of indirect infringement."  (Walker Digital, LLC v. Facebook, Inc., 852 F. Supp. 2d, 559, 565 (D. Del. 2012).  Furthermore, Plaintiff alleges that Defendant's conduct of making its website available to customers to download its product by using the patents in question sufficiently shows intent.

This case displays just how significant the method of delivery can become for video game publishers and developers, especially in light of the ever-increasing use of digital distribution for games.  Although both parties have filed briefs regarding the Motion to Dismiss, a hearing has yet to be held, and the case has a long way to go. 

We will update when more information becomes available.
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