Scale Video Coding LLC v. Cisco Systems, Inc.

District Court, E.D. Texas·Decided April 7, 2025·No. 4:23-cv-00803·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF TEXAS SHERMAN DIVISION SCALE VIDEO CODING LLC, § § v. § CIVIL NO. 4:23-CV-803-SDJ § CISCO SYSTEMS, INC. § MEMORANDUM OPINION AND ORDER The Court held a Markman hearing to determine the proper construction of several disputed claim terms in United States Patent No. 11,019,372 (“the ’372 Patent”). (Dkt. #64). Having considered the parties’ filings, (Dkt. #22, #24, #28), the parties’ arguments at the hearing, the intrinsic and extrinsic evidence, and the relevant law, the Court issues this Claim Construction Order. See Teva Pharms. USA v. Sandoz, Inc., 574 U.S. 318, 331–32, 135 S.Ct. 831, 190 L.Ed.2d 719 (2015); Phillips v. AWH Corp., 415 F.3d 1303, 1314 (Fed. Cir. 2005) (en banc). I. BACKGROUND Plaintiff Scale Video Coding LLC (“SVC”) alleges that Defendant Cisco Systems, Inc. (“Cisco”) has infringed and continues to infringe the ’372 Patent. The ’372 Patent, which is titled “Layered Multicast and Fair Bandwidth Allocation and Packet Prioritization,” was filed on January 29, 2016, and issued on May 25, 2021. It claims priority to a provisional application filed on January 26, 2005. The ’372 Patent focuses on a “one-to-many communication” system called “multicasting,” which is capable of “send[ing] data packets from a data source to more than one receiver” over “a network.” ’372 Patent at 3:6–9. Problems arise with multicasting when the flow of data exceeds the network’s capacity—a condition called “congestion”—and the receiver must decide which packets to accept or drop. Id. at 5:8– 10. No matter which data packets are dropped, the data stream will be degraded.

Depending on the type of information being streamed, the degree of degradation may vary. For example, if too many packets are dropped, a stream may become corrupt. Id. at 2:15–20. By contrast, if only a few packets are lost, the quality of the stream may decrease only slightly. Id. Either way, packet loss often stems from receivers having different “bandwidths”—i.e., different capacities for the flow of information at a given time. E.g., id. at 20:65–21:1. So while one receiver may accept a given data stream

without packet loss, another receiver may be unable to accept that same stream. To address this issue, the ’372 Patent teaches “a congestion control system that may prioritize designated layers of data within a data stream over other layers of the same data stream.” Id. at Abstract. There are two main features of this “congestion control system”: (1) an overlay network; and (2) packet prioritization through layering. To increase a network’s capacity, an “overlay network” of “software implemented routers” with “virtual connections” can be integrated with a physical network to

increase network connections and help “manage[] flow control and timely delivery” of data. Id. at 3:27–28, 31–32, 4:6. To further limit congestion, data streams are broken into “layers”: the source device encodes a base layer with lower-frame-rate data and one or more enhancement layers with higher-frame-rate data. Id. at 21:25–22:2. This layered approach allows receivers to decode only the layers they can support based on bandwidth constraints, reducing unnecessary transmission of high-quality layers over limited-bandwidth links. Id. The abstract provides additional detail on this congestion control system: Embodiments include an overlay multicast network. The overlay multicast network may provide a set of features to ensure reliable and timely arrival of multicast data. The embodiments include a congestion control system that may prioritize designated layers of data within a data stream over other layers of the same data stream. Each data stream transmitted over the network may be given an equal share of the bandwidth. . . . Data from high priority data stream layers may also be retransmitted upon request from a destination machine to ensure reliable delivery of data.

Claim 1 of the ’372 Patent is an illustrative claim and recites the following elements (disputed terms in italics): 1.A video router, comprising: a memory; and a processor, wherein the processor executes instructions stored in the memory to cause the video router to: receive a layered video data stream including a base layer and a set of enhancement layers, identify bandwidth-limited conditions of an internet protocol network between the video router and a plurality of video receivers, forward the base layer from the video router to at least two of the plurality of video receivers via the internet protocol network, and selectively forward one or more of the set of enhancement layers, but fewer than all of the set of enhancement layers, to at least two of the plurality of video receivers through the internet protocol network based upon the identified bandwidth-limited conditions, and wherein the video router transmits the layered video data stream according to an internet protocol; wherein each layer of the layered video data stream comprises data packets, each of which is encoded with a sequence number and a layer identifier, and wherein the layer identifier for each data packet is based upon a layer to which the packet belongs.

’372 Patent at 35:16–39. II. APPLICABLE LAW A. Claim Construction Claim terms are generally given their plain-and-ordinary meaning. Phillips, 415 F.3d at 1312. The plain-and-ordinary meaning of a term is the “meaning that the

term would have to a person of ordinary skill in the art in question at the time of the invention.” Id. at 1313. The “only two exceptions to this general rule” are when the patentee (1) acts as their own lexicographer or (2) disavows the full scope of the claim term either in the specification or during prosecution. Thorner v. Sony Comput. Ent. Am. LLC, 669 F.3d 1362, 1365 (Fed. Cir. 2012). The Federal Circuit has counseled that “[t]he standards for finding lexicography and disavowal are exacting.” Hill-Rom Servs., Inc. v. Stryker Corp., 755 F.3d 1367, 1371 (Fed. Cir. 2014). Indeed, to act as

their own lexicographer, the patentee must “clearly set forth a definition of the disputed claim term” and “‘clearly express an intent’ to [define] the term.” Thorner, 669 F.3d at 1365. Outside of these exceptions, the Federal Circuit has also found that plain-and- ordinary meaning is inappropriate when a term has more than one ordinary meaning or when reliance on a term’s ordinary meaning does not resolve the parties’ dispute.

O2 Micro Int’l v. Beyond Innovation Tech. Co., 521 F.3d 1351, 1361 (Fed. Cir. 2008). In that case, the court must explain what the plain-and-ordinary meaning is. Id. To discern the plain meaning of a given claim term, courts start with the “actual words” of the claims. Renishaw PLC v. Marposs Societa’ per Azioni, 158 F.3d 1243, 1248 (Fed. Cir. 1998). When looking to those words, a term’s context in the asserted claim can be instructive. Phillips, 415 F.3d at 1314. Other asserted or unasserted claims can also aid in determining the claim’s meaning because claim terms are typically used consistently throughout the patent. Id. Differences among the claim terms can also assist in understanding a term’s meaning, for there is a

general presumption that different claim terms have different meanings. Kraft Foods, Inc. v. Int’l Trading Co., 203 F.3d 1362, 1366 (Fed. Cir.

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Scale Video Coding LLC v. Cisco Systems, Inc., (E.D. Tex. 2025).

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