Litigation

Cloud Byte LLC v. Dell Inc. et al.

Ongoing

2:24-cv-00637-JRG

Filed
2024-08-05

Patents at issue (1)

Plaintiffs (1)

Defendants (2)

Summary

Cloud Byte LLC filed a patent infringement lawsuit against Dell Inc. and Dell Technologies Inc. in the Eastern District of Texas, asserting US patent 9651320 among others. The case is ongoing, with a motion to dismiss defendants' counterclaims having been granted as of January 29, 2026.

Case overview & background

Plain-language overview of the case: parties, accused product, patents at issue, and why the suit matters.

Cloud Byte LLC, identified as a Non-Practicing Entity (NPE) or Patent Assertion Entity (PAE), is the plaintiff in this patent infringement lawsuit. Cloud Byte acquires, manages, and licenses patents primarily in the field of information and communications technology (ICT), holding a portfolio of over 350 global patent assets originally developed by a multinational ICT company. The defendants are Dell Inc. and Dell Technologies Inc., both operating companies. Cloud Byte accuses Dell of infringing its patents through a broad range of products and services. These allegedly infringing offerings include various networking products such as ethernet switches, edge networking products, and SmartFabric services. Additionally, the lawsuit targets Dell's Redundant Array of Independent Disks (RAID) technology and related servers, as well as server systems that incorporate features for high availability, fault tolerance, abnormality detection, airflow cooling, and advanced temperature control.

The litigation asserts seven U.S. patents: 7,739,544; 9,482,632; 9,560,177; 9,629,265; 9,651,320; 9,900,249; and 10,628,273. U.S. Patent No. 7,739,544 generally relates to a disk array rebuild system and method. The specific technical descriptions for the remaining patents are not detailed in the provided search results. The case is proceeding in the U.S. District Court for the Eastern District of Texas, Marshall Division, before District Judge Rodney Gilstrap. The Eastern District of Texas is a prominent venue for patent litigation, historically known for its plaintiff-friendly procedures, rapid trial schedules, and a reputation for favorable verdicts for patent owners, often referred to as a "rocket docket." Although the Supreme Court's TC Heartland decision aimed to restrict venue options, plaintiffs have developed strategies to maintain cases in the EDTX, such as by targeting foreign affiliates. A Markman (claim construction) hearing was scheduled for October 15, 2025, with jury selection set for April 6, 2026.

This case is notable due to Cloud Byte LLC's nature as an NPE that quickly began asserting a recently acquired large patent portfolio against a major technology company like Dell, having formed in Delaware in February 2024 and filed suit in August 2024. The patents at issue were acquired by Cloud Byte from IP Wave Pte. Ltd., which had obtained them from NEC Asia Pacific Corporation, tracing back to NEC Corporation. Unified Patents, an organization focused on deterring baseless patent litigation, has already initiated ex parte reexamination proceedings against one of the asserted patents, U.S. Patent No. 7,739,544, with the Central Reexamination Unit granting the request and finding substantial new questions of patentability on all challenged claims as of February 11, 2025. This challenge could impact the strength of Cloud Byte's assertion in the district court case. The court also granted Cloud Byte's motion to dismiss several of Dell's counterclaims related to failure to mark on January 29, 2026.

Key legal developments & outcome

Major rulings, motions, claim construction, settlements, and the present posture or final disposition.

The patent infringement litigation, Cloud Byte LLC v. Dell Inc. et al. (2:24-cv-00637-JRG), commenced in the U.S. District Court for the Eastern District of Texas on August 5, 2024. Cloud Byte LLC asserted several patents, including U.S. Patent No. 9,651,320, against Dell Inc. and Dell Technologies Inc.. The case is currently ongoing, with significant pre-trial activity, including a granted motion to dismiss some of Dell's counterclaims and scheduled dates for claim construction and trial.

Here's a chronological overview of the key legal developments and current posture:

Filing & Initial Pleadings:

  • 2024-08-05: Cloud Byte LLC filed the complaint against Dell Inc. and Dell Technologies Inc. in the Eastern District of Texas. The asserted patents include U.S. Patent Nos. 7,739,544; 9,482,632; 9,560,177; 9,629,265; 9,651,320; 9,900,249; and 10,628,273.
  • Prior to 2026-01-29: Dell filed an answer asserting seventeen affirmative defenses and twenty-two counterclaims, some of which related to alleged failure to mark under 35 U.S.C. § 287.

Pre-trial Motions of Substance:

  • Prior to 2026-01-29: Cloud Byte LLC filed a motion to dismiss Dell's counterclaims.
  • 2026-01-29: District Judge Rodney Gilstrap granted Cloud Byte LLC's motion to dismiss Dell's third, sixth, ninth, twelfth, fifteenth, eighteenth, and twenty-first counterclaims, which sought declarations of failure to comply with 35 U.S.C. § 287.
  • 2026-01-05: The deadline for filing dispositive motions was set.

Claim Construction (Markman) Outcomes:

  • 2024-11-25 (approx): A Docket Control Order indicated a Markman Hearing was set.
  • 2025-09-04: A Notice of Hearing indicated a Markman Hearing was set for October 31, 2025, at 09:00 AM before Magistrate Judge Roy S. Payne.
  • Cloud Byte LLC also filed its P.R. 4-2 Disclosure of Proposed Claim Constructions and Extrinsic Evidence.

Discovery Milestones:

  • 2025-08-01: The deadline for amended pleadings was set.
  • 2025-12-22: The deadline for expert discovery was set.

Trial Events:

  • 2026-03-30: A Pretrial Conference was scheduled to take place before District Judge Rodney Gilstrap.
  • 2026-05-04: Jury selection is scheduled to begin at 09:00 AM before District Judge Rodney Gilstrap.

Present Posture:

  • The case remains active and is proceeding towards trial, with jury selection scheduled for May 2026.

Parallel PTAB IPR/PGR Proceedings:

  • Dell Technologies Inc. and Dell Inc. have filed multiple Inter Partes Review (IPR) petitions challenging patents asserted by Cloud Byte LLC in this litigation. These include:
    • IPR2025-01285 challenging U.S. Patent No. 9,560,177.
    • IPR2025-01286 challenging U.S. Patent No. 9,482,632.
    • Additional IPRs, IPR2025-01284, IPR2025-01287, and IPR2025-01288, were also noted as related matters by Cloud Byte LLC.
  • As of the current date, no IPR specifically for U.S. Patent No. 9,651,320 has been identified through public search.

Plaintiff representatives

Counsel of record for the plaintiff(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).

Here's an identification of the counsel of record representing Cloud Byte LLC in Cloud Byte LLC v. Dell Inc. et al., Case No. 2:24-cv-00637-JRG:

Quinn Emanuel Urquhart & Sullivan, LLP is counsel for Cloud Byte LLC.

  • Jonathan S. Tse

    • Role: Likely lead counsel, given his appearance at pretrial conferences and arguments.
    • Firm & Office: Quinn Emanuel Urquhart & Sullivan, LLP, San Francisco, CA.
    • Experience Note: Appears to be actively involved in argument and pretrial matters in this patent infringement case.
  • Brian E. Mack

    • Role: Counsel, appeared for arguments at pretrial conferences.
    • Firm & Office: Quinn Emanuel Urquhart & Sullivan, LLP, San Francisco, CA.
    • Experience Note: Actively involved in arguments during pretrial conferences in this patent litigation.
  • Ryan Seth Goldstein

    • Role: Counsel.
    • Firm & Office: Quinn Emanuel Urquhart & Sullivan, LLP, Los Angeles, CA.
    • Experience Note: Noted as appearing for Cloud Byte LLC in this case and a related patent infringement suit.
  • Yury Kapgan

    • Role: Lead Attorney, as designated in an August 5, 2024 filing.
    • Firm & Office: Quinn Emanuel Urquhart & Sullivan, LLP, Los Angeles, CA.
    • Experience Note: Designated as lead attorney for the plaintiff in this patent infringement matter.

Miller Fair Henry LLP

  • Claire Abernathy Henry

    • Role: Counsel, appeared for arguments at pretrial conferences.
    • Firm & Office: Miller Fair Henry LLP (indicated by email domain).
    • Experience Note: Appears to be actively involved in arguments during pretrial conferences in this patent case.
  • Charles Everingham, IV

    • Role: Counsel.
    • Firm & Office: Miller Fair Henry LLP (indicated by email domain).
    • Experience Note: Noted as counsel of record for Cloud Byte LLC.
  • Andrea Leigh Fair

    • Role: Counsel.
    • Firm & Office: Miller Fair Henry LLP (indicated by email domain).
    • Experience Note: Filed initial documents including the complaint and jury demand for Cloud Byte LLC.

Other Counsel Identified:

  • Melissa C. Neri

    • Role: Counsel.
    • Firm & Office: Firm not explicitly identified in search results.
    • Experience Note: Noted as counsel of record for Cloud Byte LLC.
  • Evan Kennedy Larson

    • Role: Counsel.
    • Firm & Office: Firm not explicitly identified in search results.
    • Experience Note: Noted as counsel of record for Cloud Byte LLC.
  • Ian Nathaniel Koster

    • Role: Counsel.
    • Firm & Office: Firm not explicitly identified in search results.
    • Experience Note: Noted as counsel of record for Cloud Byte LLC.

Defendant representatives

Counsel of record for the defendant(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).

Counsel of Record for Dell Inc. and Dell Technologies Inc. in Cloud Byte LLC v. Dell Inc. et al.

The defendants, Dell Inc. and Dell Technologies Inc., are represented by a team of attorneys from Gibson, Dunn & Crutcher LLP, Farella Braun + Martel LLP, and The Dacus Firm, P.C.

Here is a breakdown of the identified counsel:

Gibson, Dunn & Crutcher LLP

  • Josh A. Krevitt
    • Role: Partner, Lead Counsel.
    • Firm & Office: Gibson, Dunn & Crutcher LLP, New York, NY, and Palo Alto, CA.
    • Experience: Widely recognized as a leading IP trial lawyer, Co-Chair of Gibson Dunn's Intellectual Property Practice, and has successfully represented major technology companies like Dell in high-stakes patent and trade secret matters.
  • Paul E. Torchia
    • Role: Partner, Lead Counsel.
    • Firm & Office: Gibson, Dunn & Crutcher LLP, New York, NY.
    • Experience: Has served as lead counsel for prominent technology companies including Dell in numerous intellectual property cases, with significant experience trying and winning patent cases in the Eastern District of Texas.
  • Nathan Robert Curtis
    • Role: Of Counsel.
    • Firm & Office: Gibson, Dunn & Crutcher LLP, Dallas, TX.
    • Experience: Practices in the firm's Intellectual Property Practice Group, litigating complex IP cases in various technical fields and venues, including the Eastern District of Texas. He was part of the Gibson Dunn team that secured an appellate affirmance of an "exceptional" case finding and a $4 million attorney fees award for Dell EMC in a patent litigation.
  • Laura Corbin
    • Role: Of Counsel.
    • Firm & Office: Gibson, Dunn & Crutcher LLP, New York, NY.
    • Experience: Focuses on patent litigation and trial practice, with experience in all phases of patent and commercial cases across various industries.
  • Brian Ashley Rosenthal
    • Role: Partner.
    • Firm & Office: Gibson, Dunn & Crutcher LLP, New York, NY.
    • Experience: A trial lawyer with a particular emphasis on patent litigation, he has served as lead counsel for Dell in past patent cases and has a strong record in jury trials, arbitrations, and Federal Circuit appeals.
  • Yeepay Audrey Yang
    • Role: Associate.
    • Firm & Office: Gibson, Dunn & Crutcher LLP, Dallas, TX.
    • Experience: Member of the firm's Intellectual Property and Appellate and Constitutional Law Practice Groups, and previously served as a law clerk to Judge Alan D. Lourie of the Federal Circuit.

Farella Braun + Martel LLP

  • Eugene Y. Mar
    • Role: Partner.
    • Firm & Office: Farella Braun + Martel LLP, San Francisco, CA.
    • Experience: Specializes in litigating cases for technology companies, primarily patent infringement, trade secret, copyright, and licensing disputes, with deep experience in the Eastern District of Texas.
  • Raven Quesenberry
    • Role: Associate.
    • Firm & Office: Farella Braun + Martel LLP, San Francisco, CA.
    • Experience: Represents clients in intellectual property litigation, including patent infringement, trade secrets, and data scraping matters.
  • Su Li
    • Role: Associate.
    • Firm & Office: Farella Braun + Martel LLP, San Francisco, CA.
    • Experience: Identified as an attorney with Farella Braun + Martel LLP and counsel for Dell Technologies Inc. and Dell Inc. in related Patent Trial and Appeal Board (PTAB) proceedings, and is familiar with the district court litigation. While actively involved in the broader dispute and related PTAB actions, her explicit appearance of record in the district court case (2:24-cv-00637-JRG) as named counsel on the public docket was not definitively confirmed beyond being mentioned as counsel in related filings.

The Dacus Firm, P.C.

  • Deron R. Dacus
    • Role: Member/Trial Attorney, likely Local Counsel.
    • Firm & Office: The Dacus Firm, P.C., Tyler, TX.
    • Experience: A trial lawyer focused on business, commercial, and patent litigation, with extensive experience in the Eastern District of Texas, having represented clients in over 1,000 patent cases in the region.

In-House Counsel
Dell Technologies Inc.'s in-house legal team includes Rich Rothberg, General Counsel, and Peter Jovanovic, Legal Director, IP. While they oversee and provide support for patent litigation and intellectual property matters for Dell, they are not listed as having formally appeared as "counsel of record" in the public docket entries for this specific district court case (2:24-cv-00637-JRG).