TOUTVIRTUAL Inc. v. Unknown Defendant

TOUTVIRTUAL Inc. has initiated a patent infringement lawsuit against Microsoft Corporation in the Texas Eastern District Court, Case Number 2:25-cv-00943. The plaintiff, TOUTVIRTUAL Inc., identifies itself as a developer of virtual systems management technology and cloud-based risk management software, which indicates it could be an operating company leveraging its "foundational cloud patent portfolio" or potentially a patent assertion entity given its business model emphasizes patent commercialization. Microsoft Corporation, the defendant, is a global software and cloud-services provider, with the lawsuit specifically targeting its Azure cloud computing platform.

The litigation asserts patent infringement related to Microsoft's cloud offerings, particularly its Azure platform. While the initial prompt listed patent 12079667, public records and TOUTVIRTUAL's own website indicate a focus on a portfolio including US Patent Nos. 8,799,431, 9,444,762, and 10,810,050, which are likely among the asserted patents. For example, US Patent No. 8,799,431 broadly covers the automatic configuration management of a network by identifying virtualization layer resources, prioritizing network configuration elements, allocating virtual resources, and managing the configuration based on real-time performance metrics. The exact number of patents asserted in this specific case against Microsoft has been reported as five.

The case is proceeding in the Eastern District of Texas, a venue historically favored by patent plaintiffs due to its reputation as a "rocket docket" with accelerated trial schedules and a plaintiff-friendly jury pool. Although the Supreme Court's TC Heartland decision restricted patent venue, plaintiffs have developed strategies, such as suing foreign affiliates, to maintain cases in EDTX, leveraging its procedural advantages. This case is notable for targeting Microsoft's significant cloud computing business with patents related to virtualization management, a crucial aspect of modern cloud infrastructure, and for being filed in a jurisdiction known for high-stakes patent litigation.

Key Legal Developments and Outcome for TOUTVIRTUAL Inc. v. Microsoft Corporation

Case: TOUTVIRTUAL Inc. v. Microsoft Corporation
Case number: 2:25-cv-00943
Court: U.S. District Court for the Eastern District of Texas
Plaintiff(s): TOUTVIRTUAL Inc.
Patents at issue: At least U.S. Patent Nos. 12,079,667 and 10,810,050. News reports suggest five patents were asserted in total.

Chronological Summary of Legal Developments:

1. Filing & Initial Pleadings:

• Case Filing: TOUTVIRTUAL Inc. initiated this patent infringement litigation against Microsoft Corporation on September 8, 2025, in the U.S. District Court for the Eastern District of Texas.
• Asserted Patents: The litigation asserts at least U.S. Patent No. 12,079,667 and U.S. Patent No. 10,810,050. An earlier news report indicated that ToutVirtual, Inc. accused Microsoft of infringing five patents through its cloud offerings. The full list of asserted patents from the complaint is not publicly available in the provided search snippets.
• Attorney Appearances: Notices of attorney appearance were filed by Paul Andre and Lisa Kobialka on behalf of ToutVirtual, Inc. on September 8, 2025.
• Specific details regarding Microsoft's answer or any counterclaims are not available in the provided search snippets.

2. Pre-trial Motions of Substance:

• No specific pre-trial motions to dismiss, transfer, or for summary judgment have been identified in the provided search snippets.

3. Claim Construction (Markman) Outcomes:

• The case is still in its early stages, having been filed in September 2025. No Markman hearing outcomes have been identified.

4. Discovery Milestones:

• No specific discovery milestones with strategic significance have been identified.

5. Trial Events, Verdict, and Post-Trial Motions:

• The case is ongoing, and no trial events, verdicts, or post-trial motions have occurred.

6. Settlement, Dismissal, Judgment, or Appeal:

• The litigation remains active as of the current date (May 29, 2026).

7. Parallel PTAB IPR/PGR Proceedings:
Several inter partes review (IPR) petitions have been filed against ToutVirtual Inc.'s patents, with Wye IP Capital LLC as the Petitioner and Microsoft Corporation involved, challenging patents that are likely asserted in this district court litigation. These petitions were filed in March 2026.

• IPR2026-00295: Filed on March 6, 2026, by Wye IP Capital LLC against ToutVirtual Inc. with Microsoft Corp. involved. The specific patent number challenged in this IPR is not explicitly identified in the provided search snippets.
• IPR2026-00296: Filed on March 10, 2026, by Wye IP Capital LLC. This IPR challenges U.S. Patent No. 10,810,050, with ToutVirtual, Inc. as the Patent Owner and Microsoft Corporation as the Petitioner. The status of this IPR is "Pending".
• IPR2026-00297: Filed on March 7, 2026, by Wye IP Capital LLC. This IPR challenges U.S. Patent No. 12,079,667, with ToutVirtual, Inc. as the Patent Owner and Microsoft Corporation as the Petitioner. The status of this IPR is "Pending". The Patent Grant Date for U.S. Patent No. 12,079,667 is September 3, 2024, and the inventor is Vipul Pabari.

The pendency of these IPRs could lead to a stay of the district court litigation, pending the PTAB's decisions on institution and validity of the challenged patent claims. The outcomes of these IPRs will have a significant impact on the strength of ToutVirtual's infringement claims in the district court.

Plaintiff's Counsel in TOUTVIRTUAL Inc. v. Microsoft Corporation

Plaintiff TOUTVIRTUAL Inc. is represented by a team of attorneys, including those from Susman Godfrey LLP and Gillam & Smith LLP, with appearances made pro hac vice by counsel from other firms.

The identified counsel of record for TOUTVIRTUAL Inc. are:

• Kristopher L. Kastens

  • Role: Lead Counsel
  • Firm: Susman Godfrey LLP
  • Office Location: Dallas, Texas (This is an assumption based on typical lead counsel location, requiring further verification for absolute certainty)
  • Experience Note: Mr. Kastens is a partner at Susman Godfrey, frequently handling complex patent litigation for plaintiffs.

• Paul Andre

  • Role: Counsel (Pro Hac Vice)
  • Firm: Kramer Levin Naftalis & Frankel LLP (Based on common appearances by Paul Andre in patent litigation for plaintiffs)
  • Office Location: Silicon Valley, California (Based on common appearances by Paul Andre in patent litigation for plaintiffs)
  • Experience Note: Mr. Andre is a highly experienced patent litigator, often representing patent holders in high-stakes infringement cases.

• Lisa Kobialka

  • Role: Counsel (Pro Hac Vice)
  • Firm: Kramer Levin Naftalis & Frankel LLP (Based on common appearances by Lisa Kobialka in patent litigation for plaintiffs)
  • Office Location: Silicon Valley, California (Based on common appearances by Lisa Kobialka in patent litigation for plaintiffs)
  • Experience Note: Ms. Kobialka is a partner with significant experience in patent and intellectual property litigation.

This information is primarily derived from docket entries indicating appearances in the case. Specific firm and office locations for pro hac vice counsel are inferred based on their known practices in patent litigation, pending direct confirmation from more detailed docket entries or firm websites.

Identifying the counsel of record for Microsoft in TOUTVIRTUAL Inc. v. Microsoft (2:25-cv-00943) requires a detailed review of docket filings, which are not directly accessible through general web searches. However, based on Microsoft's typical litigation practices in the Eastern District of Texas and information from other related cases, we can infer likely firms and attorneys.

Microsoft frequently engages prominent national intellectual property firms with strong Texas presences, as well as its own in-house counsel, to defend patent infringement cases in the Eastern District of Texas.

Based on other recent patent infringement cases involving Microsoft in the Eastern District of Texas (for example, ParTec v. Microsoft, Case No. 2:24-cv-00194, where a trial was scheduled for June 15, 2026), the following firms and attorneys have represented Microsoft:

Outside Counsel:

• Desmarais LLP

  • Attorneys: Betty Hong Chen, Caitrianne Feddeler, Jeffrey S. Seddon II, Lee Joseph Matalon, Michael A. Wueste, and Peter C. Magic.
  • Firm Location: New York (primary office, though attorneys may be admitted in Texas).
  • Note: Desmarais LLP is a well-known intellectual property litigation firm often representing major technology companies as defendants in patent cases.

• Klarquist Sparkman, LLP

  • Attorneys: Kristin L. (Full name not available in snippet, but likely a partner or senior associate).
  • Firm Location: Portland, Oregon (primary office, but actively involved in Texas patent litigation).
  • Note: Klarquist Sparkman is a national intellectual property firm with significant experience in patent litigation.

• Jackson Walker LLP

  • Attorneys (Proposed for other WDTX cases, highly likely for EDTX involvement): Arthur Gollwitzer, Leisa Talbert Peschel, Wasif Qureshi, Blake Dietrich, Austin Yancy.
  • Firm Location: Multiple Texas offices including Dallas, Houston, and Austin.
  • Note: Jackson Walker has a strong Intellectual Property Litigation group with extensive experience in both the Western and Eastern Districts of Texas, frequently representing defendants in patent disputes, including Fortune 500 companies. They have defended Microsoft's intellectual property in the Western District of Texas.

In-House Counsel (Microsoft Corporation):

While specific in-house counsel for this particular case are not available without docket access, Microsoft has a robust in-house legal team that works closely with outside counsel on patent litigation. Key individuals in Microsoft's intellectual property legal department include:

• Lucky Vidmar

  • Role: Associate General Counsel and Head of IP Litigation.
  • Location: Redmond, Washington (Microsoft Headquarters).
  • Note: Manages Microsoft's worldwide docket of patent, trademark, copyright, and trade secret cases.

• Dan Choi

  • Role: Associate General Counsel and Chief Patent Counsel.
  • Location: Redmond, Washington (Microsoft Headquarters).
  • Note: Leads the team responsible for Microsoft's patent strategy, portfolio development, and patent policy, particularly supporting Cloud and AI businesses.

• Phong Dinh

  • Role: Senior Corporate Counsel.
  • Location: Redmond, Washington (Microsoft Headquarters).
  • Note: Leads a patent team supporting Microsoft's Cloud and AI business, focusing on patent portfolio development, IP counseling, and strategic partnerships, including Azure AI.

It is important to note that the specific counsel for TOUTVIRTUAL Inc. v. Microsoft (2:25-cv-00943) can only be definitively confirmed by reviewing the official docket for the case. The information above is based on general patterns of Microsoft's patent litigation defense in the Eastern District of Texas and its known legal team structure. If the filings are sealed or counsel has not yet formally appeared, this information would not be publicly available.