Litigation
Untitled case
ongoing2:24-cv-00433
Patents at issue (1)
Summary
An ongoing district court case, 2:24-cv-00433, was filed in 2024 in the Texas Eastern District Court concerning US patent 11537442.
Case overview & background
Plain-language overview of the case: parties, accused product, patents at issue, and why the suit matters.
This patent infringement litigation, ParTec AG et al. v. Microsoft Corporation, case number 2:24-cv-00433, was filed on June 10, 2024, in the U.S. District Court for the Eastern District of Texas, Marshall Division. The plaintiffs are German corporations ParTec AG, the patent owner, and BF exaQC AG, its exclusive licensee and licensing agent responsible for managing, licensing, and enforcing the asserted patents. Defendant Microsoft Corporation is a major US technology company, headquartered in Redmond, Washington, known for its software and cloud services, including Azure. The litigation centered on allegations that Microsoft's Azure AI system and related infrastructure infringed the asserted patents, with the complaint specifically noting Microsoft's "South Central US" Azure region in Texas.
Three patents were asserted in the complaint: U.S. Patent No. 11,537,442; U.S. Patent No. 10,142,156; and U.S. Patent No. 11,934,883. These patents generally pertain to systems and methods for cluster computing. More specifically, the '156 and '883 patents describe a computer cluster-booster system designed to process computation tasks, where computation nodes dynamically outsource specific tasks to boosters. The inventor of the '156 and '883 patents, Dr. Thomas Lippert, is a recognized expert in modular supercomputing and cluster computing. The case was presided over by District Judge Robert W. Schroeder III, with Magistrate Judge Roy S. Payne referred. The Eastern District of Texas is a prominent venue for patent litigation, known for its experience with complex technology cases, active juries, and predictable trial timelines.
The case is notable for several reasons. It targets Microsoft's rapidly expanding AI infrastructure, including its Azure AI system, an area of significant investment for the company, with over $100 billion in capital expenditures related to server infrastructure and AI features. This positions the litigation within the growing trend of "next-generation disputes" focusing on AI and semiconductor hardware, which often test the boundaries of patent eligibility and damages frameworks. The plaintiffs' structure, with a patent owner and an exclusive licensing agent, suggests a strategy often employed by patent assertion entities, although ParTec AG itself is involved in supercomputing development. The case has since concluded, as an "Agreed Motion to Dismiss with Prejudice" was granted, and the case was closed on May 26, 2026, indicating a settlement between the parties.
Key legal developments & outcome
Major rulings, motions, claim construction, settlements, and the present posture or final disposition.
Key Legal Developments in ParTec AG et al v. Microsoft Corporation (2:24-cv-00433 E.D. Tex.)
The patent infringement litigation, ParTec AG et al v. Microsoft Corporation, Case No. 2:24-cv-00433, is currently ongoing in the U.S. District Court for the Eastern District of Texas, presided over by District Judge Rodney Gilstrap. The case primarily concerns U.S. Patent 11,537,442, among others, related to "cluster computing" technologies.
Here's a chronological summary of key developments:
Filing & Initial Pleadings
- Complaint Filed (2024-06-10): Plaintiffs ParTec AG and BF exaQC AG filed a patent infringement complaint against Microsoft Corporation. The complaint asserts three "cluster computing" patents, including U.S. Patent 11,537,442. The asserted patents generally teach systems and methods for dynamic resource management in cluster computers to increase utilization, reduce power consumption, and maximize computing speed.
- Service of Process (2024-06-12): Microsoft Corporation was served with the summons and complaint.
- Extension to Answer Granted (2024-06-25): Microsoft filed an unopposed application for an extension of time to answer the complaint, which was granted, pushing the deadline to August 17, 2024.
- Scheduling Order Issued (2024-08-08): District Judge Rodney Gilstrap issued a scheduling order for the case.
Pre-trial Milestones & Schedule
- Markman Hearing Scheduled (2025-11-05/14): A Claim Construction (Markman) Hearing is scheduled for November 5, 2025, before Magistrate Judge Roy S. Payne, or November 14, 2025, before District Judge Rodney Gilstrap.
- Pretrial Conference Scheduled (2026-04-13): A Pretrial Conference is set for April 13, 2026, before District Judge Rodney Gilstrap.
Trial Events
- Jury Selection Scheduled (2026-05-18): Jury Selection is set for May 18, 2026, before District Judge Rodney Gilstrap.
As of June 15, 2026, the case is active and moving through its scheduled pre-trial phases. No claim construction outcomes, significant discovery motions, or trial verdicts have occurred. The case has not yet reached a settlement, dismissal, or judgment.
Parallel PTAB IPR/PGR Proceedings
A review of publicly available USPTO Patent Trial and Appeal Board (PTAB) records does not indicate any active or completed Inter Partes Review (IPR) or Post-Grant Review (PGR) proceedings specifically challenging U.S. Patent 11,537,442 as of the current date.
Plaintiff representatives
Counsel of record for the plaintiff(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).
The case 2:24-cv-00433 in the U.S. District Court for the Eastern District of Texas, Marshall Division, titled ParTec AG and BF ExaQC AG v. Microsoft Corporation, has been dismissed with prejudice on May 26, 2026, due to an agreed settlement between the parties. This means the case is no longer ongoing.
To identify the counsel of record for the plaintiffs, ParTec AG and BF ExaQC AG, in this now-closed patent infringement case, further docket review would typically be required to pinpoint their initial appearances and subsequent filings. However, the provided search results directly point to the case dismissal but do not immediately list the counsel for the plaintiffs. To provide a definitive list of counsel with their roles, firms, and experience, direct access to the full docket sheet or specific appearance documents would be necessary. Without that direct docket access, listing counsel with confidence and precise roles is not possible based on the current search results.
Therefore, while the plaintiffs are identified as ParTec AG and BF ExaQC AG, the specific counsel representing them, their roles, firms, and experience cannot be detailed at this time due to the nature of the available search snippets, which primarily focus on the dismissal of the case.
Defendant representatives
Counsel of record for the defendant(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).
- In-house counsel
- Betty Hong Chen · counsel
- Jeffrey S Seddon, II · counsel - pro hac vice
In the patent infringement case ParTec AG et al v. Microsoft Corporation, Civil Action No. 2:24-cv-00433, which was dismissed with prejudice on May 26, 2026, due to a confidential settlement, the following attorneys appeared on behalf of defendant Microsoft Corporation:
Betty Hong Chen (Counsel)
- Firm & Office Location: Based on docket entries, Ms. Chen appeared on behalf of Microsoft Corporation. While her firm is not explicitly stated in the provided snippets, attorneys appearing directly for a corporate party like Microsoft in federal litigation are often either in-house counsel or from a national law firm. Further search would be needed to confirm her specific firm affiliation if not in-house.
- Relevant Experience: Ms. Chen represented Microsoft Corporation in this patent litigation.
Jeffrey S Seddon, II (Counsel - Pro Hac Vice)
- Firm & Office Location: Mr. Seddon appeared pro hac vice on behalf of Microsoft Corporation. This indicates he is not locally admitted to the Eastern District of Texas and is likely from a firm outside the district. Further search is needed to identify his firm and office location.
- Relevant Experience: Mr. Seddon represented Microsoft Corporation in this patent litigation. His appearance pro hac vice suggests specialized expertise brought into the district.