Advanced Cluster Systems, Inc. v. Advanced Micro Devices, Inc.

Case Overview & Background

Parties. Plaintiff Advanced Cluster Systems, Inc. ("ACS") is a California corporation based in Newport Beach. It is an inventor-controlled entity: founder Zvi Tannenbaum created ACS in 2004 to build parallel-programming tools for high-performance computing, and the asserted patents are co-invented with Dean E. Dauger of Dauger Research, Inc., with ACS touting its "Supercomputing Engine Technology (SET)" for parallelizing applications such as Wolfram Mathematica (RPX; Mondaq). The Stanford NPE Litigation Database classifies ACS as a "Practicing Entity," while RPX characterizes it as an "Inventor-Controlled Plaintiff"; in practice ACS's sole activity is a patent-enforcement campaign (see below), so its NPE/practicing-entity status is contested in the databases. Defendant Advanced Micro Devices, Inc. ("AMD") is a Delaware semiconductor company and a leading supplier of data-center CPUs (EPYC), GPUs, and AI accelerators (Instinct MI series). The complaint grounds venue and jurisdiction on AMD's regular places of business in Austin, Texas (7171 Southwest Parkway; 7000 W. William Cannon Dr.; 1340 Airport Commerce Dr.), within the Western District (Compl. ¶3, filed as Ex. 1043 in IPR2025-00913).

Patents and accused technology. ACS asserts five patents from a family of ten directed to "cluster computing" — a parallel, peer-to-peer "mesh" framework that lets software written for a single node (e.g., Mathematica) run across multiple computing nodes without a master-slave grid architecture, with an estimated June 2006 priority date and issue dates from 2019 through 2024 (RPX/Mondaq). The patents are: (1) U.S. 10,333,768, "System for Parallel Processing of Mathematical Applications on Computer Clusters" — adapting single-machine math software to run in parallel across cluster nodes via peer-to-peer "cluster node modules" (IPR2025-00794 record); (2) U.S. 11,563,621 — cluster-computing systems/methods for direct node-to-node communication; (3) U.S. 11,570,034 (issued Jan. 31, 2023) — a framework of peer-to-peer cluster node modules enabling parallel processing for applications not designed for clusters, with claims 1, 2, 3, 8, 10, 24, 25, 27, 28 asserted (Am. Compl. ¶74); (4) U.S. 11,811,582 (issued Nov. 7, 2023) — methods for enabling peer-to-peer communication among otherwise independent software kernels in a cluster for distributed parallel execution; and (5) U.S. 12,021,679 (issued June 25, 2024) — a cluster architecture where nodes each running single-node kernels communicate directly as peers. The accused instrumentalities are AMD's EPYC 7002/7003/9004/9005 server processors, Instinct MI210–MI350A accelerators, and server/workstation platforms incorporating them, allegedly infringing when used in multi-node clusters (with AMD's ROCm software stack) for HPC and AI/ML workloads — the complaint specifically invokes the Frontier exascale supercomputer (Am. Compl. ¶¶6, 50–55). AMD's invalidity contentions attacked the sufficiency of ACS's infringement contentions for lack of pinpoint ROCm source-code citations, and asserted § 102/103, inventorship, and double-patenting grounds (P-TACTS IPR2025-00913 exhibits).

Procedural posture and significance. Filed September 26, 2024, in the W.D. Tex. Midland-Odessa Division before Judge Alan D. Albright (7:24-cv-00244-ADA) — a single-judge division that has become a patent-litigation hub; AMD's Austin facilities supply the § 1400(b) venue hook. The case proceeded through a scheduling order (Doc. 36, Mar. 19, 2025), a Markman hearing (Aug. 12, 2025), a claim construction order signed by Judge Albright, and a corrected amended complaint (Doc. 73, Dec. 8, 2025) with AMD answering Dec. 22, 2025. On January 22, 2026, an order of dismissal was entered; the docket text does not state whether dismissal was with or without prejudice, but AMD and ACS's subsequent joint motion to terminate the parallel IPRs (PTAB Paper 19, Jan. 23, 2026) represents that "a Joint Stipulation to Dismiss has been filed to dismiss all claims in the ACS v. AMD litigation with prejudice," pursuant to a confidential "Settlement and Patent License Agreement" (Ex. 1162) — the Board terminated AMD from IPR2025-00913/914/915/916 (covering the '034, '679, '621, and '582 patents) on Jan. 29, 2026, with Intel remaining as petitioner. The case is notable for several reasons: it is the second act of ACS's sole campaign, which began in October 2019 against NVIDIA and settled in April 2023 after two IPRs on the '768 patent were denied institution (IPR2021-00019/00020) and three others terminated; four of the five patents were asserted in litigation for the first time; it was litigated in tandem with a mirror-image case against Intel (7:24-cv-00245-ADA), still pending; and it produced significant PTAB developments, including the Director's discretionary denial of Intel's IPR2025-00794/00795 under the newly articulated "settled expectations" doctrine (denying Intel's national-security arguments about exascale computing, rehearing denied Oct. 31, 2025) and AMD's Sotera stipulations (IPR2025-00862/00863, outcome not verified). The dispute sits at the center of the AI/HPC infrastructure market, pitting the EPYC/Instinct line — used in the Frontier exascale system — against Intel Xeon/Habana and NVIDIA in a high-stakes cluster-computing patent family.

Advanced Cluster Systems, Inc. v. Advanced Micro Devices, Inc. — Key Legal Developments & Outcome

Case No. 7:24-cv-00244-ADA (W.D. Tex., Midland–Odessa / Waco divisions)
Filed 2024-09-26 | Terminated 2026-01-22 | Dismissed (settlement)

Note on sourcing: This summary draws on the PACER-derived docket mirrors (Unified Patents portal, Justia), RPX/NPE database reports, and USPTO PTAB filings (IPR2025-00862/00863, IPR2025-00915). Several docket entries (exact dates of claim construction briefing, discovery orders) are only partially visible in public mirrors; where the record is thin, I flag it rather than speculate.

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1. Filing & Initial Pleadings

• 2024-09-26 — Complaint filed (Doc. 1). Advanced Cluster Systems, Inc. ("ACS"), represented by Cherry Johnson Siegmund James PLLC (William Ellerman, Mark Siegmund, Michelle Wang; Andrew McElligott admitted PHV), sued AMD for infringement of five patents: U.S. Patent Nos. 10,333,768; 11,563,621; 11,570,034 ('034); 11,811,582; and 12,021,679 — all from a cluster-computing family with a ~June 2006 priority date. ACS accused AMD's EPYC server processors (7002/7003/9004/9005 series) and Instinct accelerators (MI210–MI350A), plus server platforms using them. Jury demand made; claim charts attached as Exhibits F–J (docket via Unified Patents; RPX recap, 2024-09-27).
• 2024-10-08/14 — Service and Rule 7.1 disclosure; notice of related case (ACS's parallel suit against Intel, 7:24-cv-00245-ADA).
• 2024-10-22/23 — AMD retains Winston & Strawn (Thomas Melsheimer, Rex Mann; Brian Ferguson and Charles Liu PHV). Court grants AMD's unopposed extension to answer by 2024-11-27 (Doc. 22, text order 2024-10-23).
• 2025-01-08 — AMD's Answer (Doc. ~31) with jury demand. Denies infringement (direct/indirect/DOE), asserts affirmative defenses including non-infringement and invalidity (answer text reproduced in PTAB petition exhibit).
• 2025-11-25 — Amended Complaint (Doc. 72); 2025-12-08 — corrected Amended Complaint (Doc. 73) (asserting claims 1, 2, 3, 8, 10, 24, 25, 27, 28 of the '034 patent, among the full five-patent set).
• 2025-12-22 — AMD's Answer to the corrected Amended Complaint (Doc. 74) (Melsheimer).

Judge assignment: The case was initially docketed in the Midland–Odessa division before Judge David Counts (Magistrate Judge Derek Gilliland handling PHV/extension matters). By mid-2025 it had been transferred to Judge Alan D. Albright (Waco) — PTAB exhibits reference "395 Transfers to Albright" and "69 Patent Transfers to Albright" (LexMachina), and Judge Albright signed the claim construction order. The transfer motion/order itself is not in the public mirrors I reviewed.

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2. Pre-Trial Motions of Substance

• No motion to dismiss for failure to state a claim or motion to transfer appears in the public docket mirrors. The reassignment to Judge Albright appears to have been part of the W.D. Tex. administrative transfer wave (per PTAB exhibits), not an adversary § 1404(a) motion.
• No motion to stay pending IPR was filed. ACS's PTAB opposition papers stressed that no stay had been requested and that Judge Albright historically denies such stays (IPR2025-00863, Patent Owner Preliminary Response, citing Albright's ~74% denial rate for opposed IPR stays).
• 2025-04-16 — AMD's Notice of Sotera Stipulations for the '768 patent (district court filing). AMD committed that if the PTAB instituted IPR2025-00862 (claims 1–25, 30–34) and/or IPR2025-00863 (claims 26–29, 35–39), it would not pursue invalidity in this litigation on § 102/103 grounds raised or reasonably available in those IPRs — the standard Sotera estoppel stipulation to blunt Fintiv discretionary denial.
• No summary-judgment motions are evident; the case settled and was dismissed during the claim-construction phase, before SJ briefing.
• 2025-08-11 — Order Resetting Markman (referenced as Ex. 1081 in IPR2025-00863), showing active claim-construction scheduling; the court clerk confirmed the Markman date even as the parties extended brief deadlines.

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3. Claim Construction (Markman)

• A Claim Construction Order was entered, signed by Judge Alan D. Albright (per the Unified Patents docket listing). The public mirrors do not disclose its date or the construed terms. The case was dismissed ~2–4 months after the order, before trial.
• Caveat: I could not retrieve the substantive constructions (claim terms, holdings) from available sources; if the terms matter to your analysis, PACER Doc. ~70 and the Albright order would be the source.

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4. Discovery Milestones (strategic significance)

Public docket mirrors show little granular discovery detail, but the following are strategically significant:

• Accused-product discovery focused on AMD's EPYC/Instinct ecosystem, including AMD's own admissions regarding published Instinct marketing/technical materials (AMD's answers reproduced in PTAB exhibits), consistent with ACS's theory that the accused multi-node clusters implement peer-to-peer node communication.
• PTAB exhibits show the parties were nearing final infringement/invalidity contentions and had completed substantial Markman work by mid-2025 — ACS argued in the IPR context that the district court had "already invested significant time and resources into construing the claims" (IPR2025-00863 POPR), a factor in the Board's discretionary-denial calculus.
• The strategic centerpiece of discovery-phase activity was IPR preparation: AMD's petitions, Sotera stipulations, and planned joinder to Intel's IPRs — all of which were denied institution before the case settled.

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5. Trial Events & Post-Trial Motions

• Trial was scheduled for 2026-11-16 (projected final-written-decision date for the AMD IPRs aligned with that date, per the Director's institution decision).
• No trial occurred. The case was dismissed on 2026-01-22, before claim-construction→trial milestones could complete.
• No verdict, no JMOL, no new-trial motion, no fee motion — none applicable.

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6. Final Disposition — Settlement and Dismissal

• 2026-01-22 — Order of Dismissal entered (Doc. ~79). The docket text does not state whether dismissal was with or without prejudice.
• The dismissal was in fact with prejudice, per the parties' contemporaneous PTAB filing: in the 2026-01-23 Joint Motion to Terminate in IPR2025-00915, AMD and ACS stated that "A Joint Stipulation to Dismiss has been filed to dismiss all claims in the ACS v. AMD litigation with prejudice" (PTAB IPR2025-00915, Paper 19).
• The parties reached a settlement agreement — the "Confidential Settlement and Patent License Agreement" (filed as Ex. 1086 with the PTAB, sealed as business confidential under 35 U.S.C. § 317(b)). Financial terms are not public.
• No appeal was filed by either party.

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7. Parallel PTAB IPR/PGR Proceedings and Effect on the Litigation

The IPR campaign is a central feature of this case's trajectory:

• AMD's IPRs on the '768 patent:
  • IPR2025-00862 (claims 1–25, 30–34) and IPR2025-00863 (claims 26–29, 35–39), petitions filed 2025-04-16, with Sotera stipulations filed in the district court the same day.
  • 2025-10-31 — Director Discretionary Decision denying institution in both (35 U.S.C. § 314(a)). Acting Director Coke Morgan Stewart granted ACS's discretionary-denial request, reasoning that (1) the parallel district court trial (11/16/2026) coincided with the FWD deadline; (2) the '768 patent's settled expectations; and (3) the Board had twice before denied institution on the same patent in the earlier NVIDIA campaign (IPR2021-00019, IPR2021-00020, both denied 2021-05-05). AMD's national-security/AI-supply-chain arguments were found insufficiently tailored. This left AMD without IPR leverage on the '768 patent.
• Intel-led IPRs covering the same family (with AMD as putative joinder petitioner):
  • Intel's IPR2025-00794/00795 (same '768 claims) — the target of AMD's planned contingent joinder.
  • IPR2025-00913 (Intel petition filed ~2025-04-29; the complaint against AMD was attached as Ex. 1043).
  • IPR2025-00915 (U.S. Patent No. 11,563,621), co-petitioners Intel and AMD — this one was instituted, but after the district court settlement:
    • 2026-01-23 — Joint Motion to Terminate as to AMD only (Paper 19), reciting the settlement agreement and the with-prejudice dismissal, and requesting the settlement agreement be kept confidential. Intel remained a party to IPR2025-00915.
• Effect on litigation: The PTAB activity (a) forced ACS to litigate discretionary-denial issues, (b) occupied AMD's litigation strategy via Sotera stipulations, and (c) was a principal bargaining chip in the settlement — the final disposition (with-prejudice dismissal and confidential license) came immediately after the AMD IPRs were denied institution and simultaneously with the post-institution settlement termination of IPR2025-00915 as to AMD.

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Bottom Line

ACS v. AMD was a fast-moving, five-patent cluster-computing case in W.D. Tex. that ended before trial through settlement. Key milestones: complaint (2024-09-26) → answer (2025-01-08) → amended pleadings (Nov–Dec 2025) → claim construction order (Judge Albright, ~late 2025) → with-prejudice dismissal (2026-01-22) following a confidential settlement and patent license. The parallel PTAB front was largely adverse to AMD — both AMD IPRs on the '768 patent were discretionarily denied institution (2025-10-31) — but AMD achieved termination of the instituted '621 IPR as to itself upon settlement (2026-01-23), while Intel continued the '621 IPR. No trial, verdict, or post-trial motions occurred; no appeal was filed. The parallel case ACS v. Intel (7:24-cv-00245-ADA) remained pending as of the AMD settlement.

Based on the docket record (Justia/docket entries for 7:24-cv-00244-ADA), the PTAB Power of Attorney filed in the parallel IPR2025-00915 proceeding, and firm bios, the plaintiff Advanced Cluster Systems, Inc.'s counsel of record were as follows.

Plaintiff's Counsel of Record — Advanced Cluster Systems, Inc.

Local counsel (Texas bar, W.D. Tex. admissions)

1. Mark D. Siegmund — local counsel / Texas lead

• Firm: Cherry Johnson Siegmund James PLLC (CJSJ), Waco/Dallas, TX (firm Waco address: Bridgeview Center, 7901 Fish Pond Rd, Waco, TX 76710; firm also has a Dallas office at 8140 Walnut Hill Lane, Suite 105)
• Role: Filed the pro hac vice motions for PHV plaintiff attorneys (Dkt. 8 for Barcelo, Dkt. 9 for Lindner); later appeared on plaintiff filings (e.g., the parallel Intel case docket shows his signature on ACS filings).
• Experience: Founding partner of CJSJ, a prominent Waco-based patent plaintiff litigation boutique that routinely serves as local counsel in Judge Albright's court; extensive patent litigation practice in W.D. Tex.

2. William D. Ellerman — local counsel

• Firm: Cherry Johnson Siegmund James PLLC, Dallas, TX (8140 Walnut Hill Lane, Suite 105)
• Role: Filed the PHV motion for Andrew McElligott (Dkt. 14).
• Experience: Veteran Texas trial lawyer (licensed 1998) with 20+ years of patent and complex commercial litigation; previously at Jackson Walker, Shore Chan DePumpo, and McKool Smith (joined 2022); National Law Journal Top 100 Verdicts (2021); admitted to the Federal Circuit and U.S. Supreme Court.

3. Michelle Wang — local counsel

• Firm: Not confirmed from available sources (she filed a Notice of Attorney Appearance for ACS on Oct. 8, 2024, Dkt. 16, but no firm affiliation appears in the docket excerpts retrieved).
• Role: Local counsel of record (appearance on behalf of plaintiff).
• Experience: Not verifiable from the sources retrieved; no firm bio or background located.

Pro hac vice counsel (out-of-state)

4. David P. Lindner — lead PHV counsel

• Firm: Crowell & Moring LLP, Chicago, IL (455 N. Cityfront Plaza Drive, Ste. 3600)
• Role: PHV admission granted Oct. 2, 2024 (Dkt. 12); designated lead counsel for ACS in the parallel PTAB IPRs (e.g., IPR2025-00915, Power of Attorney dated May 6, 2025).
• Experience: Crowell & Moring IP litigation partner; leads ACS's patent-enforcement campaign and PTAB defense against Intel/AMD petitions.

5. Jon W. Gurka — PHV counsel

• Firm: Crowell & Moring LLP, Irvine, CA (3 Park Plaza, Floor 20)
• Role: PHV admission granted Oct. 2, 2024 (Dkt. 10); backup counsel for ACS before the PTAB in the parallel IPRs.
• Experience: Crowell & Moring IP partner (Reg. No. 44,139) handling patent litigation and IPR practice.

6. Andrew McElligott — PHV counsel

• Firm: Not confirmed from the sources retrieved (PHV motion filed by Ellerman, granted Oct. 10, 2024, Dkt. 18). Given the Crowell & Moring engagement in the companion IPRs, he may be affiliated there, but I could not verify his firm from the available record.
• Role: PHV attorney for plaintiff.
• Experience: Not verifiable from the sources retrieved.

7. Reynaldo C. Barcelo — PHV counsel

• Firm: Barcelo, Harrison & Walker, LLP, Newport Beach, CA (2901 W. Coast Hwy, Ste. 200)
• Role: PHV admission granted Oct. 2, 2024 (Dkt. 13); backup counsel for ACS in the parallel IPRs.
• Experience: Named partner of his own IP boutique; experienced patent trial lawyer who has handled numerous district court patent cases (including against major tech defendants); also represents ACS before the PTAB.

8. Kainoa Asuega — PHV counsel

• Firm: Not confirmed from the sources retrieved (PHV admission granted Oct. 2, 2024, Dkt. 11).
• Role: PHV attorney for plaintiff.
• Experience: Not verifiable from the sources retrieved.

Notes and caveats

• The docket entries confirm these eight attorneys as counsel of record for ACS (appearances and PHV orders at Dkts. 6–18, filed Oct. 1–10, 2024). The docket snapshot retrieved was dated Oct. 28, 2024, so later additions or substitutions of counsel cannot be ruled out; the amended complaint (Dkt. 72/73) and subsequent filings may reflect a slightly expanded team.
• No in-house counsel for ACS appeared on the retrieved docket; the company (founded by Zvi Tannenbaum) appears to have relied on outside counsel.
• Defendant AMD's counsel (Winston & Strawn — Thomas M. Melsheimer, Rex A. Mann, Brian E. Ferguson, Chaoxuan Charles Liu) were confirmed, but that is outside the scope of your request.
• The case was dismissed by order entered Jan. 22, 2026 (docket text does not state whether with or without prejudice), and I found no indication of any sanctions or counsel-related disputes affecting these appearances.

Defendant AMD's Counsel of Record — Advanced Cluster Systems, Inc. v. Advanced Micro Devices, Inc., No. 7:24-cv-00244-ADA (W.D. Tex.)

Based on the district court docket (Justia/PACER entries), the pro hac vice orders, and AMD's signed filings (answers, Sotera stipulation notices, and PTAB powers of attorney), AMD was represented by Winston & Strawn LLP. No separate local counsel firm was needed because Winston & Strawn's Dallas attorneys are Texas-licensed; the out-of-state attorneys entered pro hac vice.

1. Thomas M. Melsheimer — Lead / Texas counsel

• Role: Lead counsel for AMD; the principal signatory on AMD's filings (Answer to the original complaint, Dkt. filed 01/08/2025; Answer to the Corrected First Amended Complaint, 12/22/2025; Sotera stipulation notices). Appeared of record 10/28/2024 (Dkt. 25).
• Firm/location: Winston & Strawn LLP, 2121 North Pearl Street, Suite 900, Dallas, TX 75201 (Texas Bar No. 13922550).
• Experience note: Veteran trial lawyer and former firm/office litigation leader; fellow of the American College of Trial Lawyers, best known as lead trial counsel in the landmark TiVo Inc. v. EchoStar Corp. DVR patent litigation (jury verdict, injunction, and contempt/enhanced-damages phases), with extensive W.D. Tex. and nationwide patent trial experience.

2. Rex A. Mann — Local / Texas counsel

• Role: Texas-licensed attorney for AMD; appeared of record 10/28/2024 (Dkt. 26); joined Melsheimer on AMD's Sotera stipulation notices (Dkt. 43, 44, etc.).
• Firm/location: Winston & Strawn LLP, Dallas, TX (Texas Bar No. 24075509).
• Experience note: Patent litigator in Winston & Strawn's Dallas IP practice, active in district court and PTAB matters; co-counsel with Melsheimer on AMD's W.D. Tex. defense.

3. Brian E. Ferguson — Pro hac vice / Lead IPR counsel

• Role: Admitted pro hac vice for AMD by order dated 10/23/2024 (Dkt. 23, granting Dkt. 20); designated lead counsel for AMD in the parallel PTAB proceedings (IPR2025-00862 and IPR2025-00863 challenging the '768 patent, and joined IPR2025-00915 for the '621 patent).
• Firm/location: Winston & Strawn LLP, 1901 L Street, N.W., Washington, D.C. 20036 (USPTO Reg. No. 36,801).
• Experience note: Longtime patent litigator and former leader of Winston & Strawn's IP practice; substantial Federal Circuit, district court, and PTAB/ITC experience, and the face of AMD's IPR campaign against ACS's patent family.

4. Chaoxuan Charles Liu — Pro hac vice / IPR back-up counsel

• Role: Admitted pro hac vice for AMD by order dated 10/23/2024 (Dkt. 24, granting Dkt. 21); back-up counsel in AMD's IPRs (IPR2025-00862/00863; joined IPR2025-00915).
• Firm/location: Winston & Strawn LLP, Dallas, TX (Texas Bar No. 24100410; USPTO Reg. No. 76,616; admitted PHV in the district court case).
• Experience note: Patent litigator focused on PTAB/IPR practice and district court patent litigation; co-author of AMD's IPR petitions and Sotera stipulations.

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Additional persons to note (not counsel of record in the district court case)

• James Kappos (Winston & Strawn, Dallas) appeared as back-up counsel for AMD in the PTAB proceedings (per the IPR powers of attorney and the IPR2025-00915 termination order), but I found no docket entry confirming a separate appearance in the W.D. Tex. case.
• David Parandoosh (AMD Senior Director, Intellectual Property) signed AMD's PTAB power of attorney as a client representative. He is in-house at AMD, but I found no evidence he entered an appearance in the district court action; no in-house counsel appears on the district court docket among the entries reviewed.

Sourcing notes / caveats

• Attorney appearances are confirmed by the October 2024 docket entries (Dkts. 20–26) reflected on Justia's docket page for 7:24-cv-00244, and by the signatures on AMD's Sotera stipulation notices (e.g., Dkt. 43, filed 04/28/2025) and the answers (01/08/2025 and 12/22/2025).
• The docket snapshot I reviewed (October 28, 2024) lists Judge David Counts as presiding judge with Magistrate Judge Derek T. Gilliland handling motions, and the pleadings are captioned in the Midland-Odessa Division; some later secondary sources reference Judge Albright, so I could not independently confirm the final judicial assignment.
• The case was dismissed on 01/22/2026, and the dismissal order's docket text (per the Unified Patents/RPX docket feeds) does not identify counsel. If the full PACER docket contains later appearances (e.g., additional Winston & Strawn or AMD in-house attorneys), those would not be reflected in the public snapshots I accessed.