UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION
VERIFIED COMPLAINT FOR PATENT INFRINGEMENT
Plaintiff Optiwave Semiconductor Corp. ("OWS" or "Optiwave Semi"), by and through its attorneys, Calderwood & Harkness LLP and local counsel Whitmore & Callahan LLP, files this Verified Complaint for patent infringement against Defendant Lumicore Technologies, Inc. ("Lumicore") and alleges the following upon knowledge as to its own acts and upon information and belief as to the acts of others:
OWS brings this action for infringement of United States Patent Nos. 10,234,847 (the "'847 Patent"); 10,891,193 (the "'193 Patent"); 9,678,562 (the "'562 Patent"); and 11,402,015 (the "'015 Patent") (collectively, the "Asserted Patents"). As set forth in detail below, Lumicore has made, used, sold, offered for sale, and imported into the United States products that infringe each of the Asserted Patents. Lumicore has done so with full knowledge of OWS's patent rights, having been placed on actual notice of the Asserted Patents and specific allegations of infringement through multiple detailed licensing communications and an in-person meeting, and yet has continued to manufacture and sell the accused products and to launch new infringing products into the marketplace.
OWS seeks compensatory damages of approximately $210 million, comprising lost profits and reasonable royalties, enhanced damages for willful infringement pursuant to 35 U.S.C. § 284, and a permanent injunction barring Lumicore from making, using, selling, offering to sell, or importing the accused products in the United States. OWS further seeks a declaration that this case is exceptional under 35 U.S.C. § 285 and an award of reasonable attorneys' fees and costs.
I. NATURE OF THE ACTION
1. This is an action for patent infringement arising under the Patent Laws of the United States, Title 35 of the United States Code, Sections 1 et seq.
2. Plaintiff Optiwave Semiconductor Corp. is a leading innovator and manufacturer of silicon photonics chipsets for data-center interconnects. OWS holds 142 issued United States patents and 58 pending patent applications directed to silicon photonics technologies, including optical transceivers, waveguide multiplexing architectures, photonic integrated circuit thermal management, and grating coupler designs. OWS is the third-largest United States supplier of silicon-photonics transceiver modules for hyperscale data centers, serving customers that include many of the world's largest cloud computing and telecommunications providers.
3. Defendant Lumicore Technologies, Inc. is a fast-growing competitor in the silicon-photonics transceiver market. Since its founding in 2015, Lumicore has developed and sold products that compete directly with OWS's products in the market for high-speed optical transceiver modules used in hyperscale data centers and telecommunications networks. As set forth in this Complaint, Lumicore has developed and sold products that infringe four OWS utility patents covering optical transceiver and waveguide multiplexing technologies that are core to the accused products' functionality and commercial value.
4. The accused products are Lumicore's LumiLink 400G-ZR+, LumiLink 800G-DR8, and LumiEdge 1600G-LR transceiver modules (collectively, the "Accused Products"). Each of these products incorporates technology covered by one or more of the Asserted Patents. In aggregate, the Accused Products generated approximately $264.9 million in revenue for Lumicore in fiscal year 2023 alone, representing the substantial majority of Lumicore's total product revenue.
5. Prior to filing this action, OWS made extensive good-faith efforts to resolve this dispute. OWS provided Lumicore with pre-suit notice of infringement through its licensing agent, FairPoint Licensing Group, LLC, beginning on January 15, 2023. OWS's pre-suit communications included two detailed licensing letters with specific claim charts demonstrating infringement and an in-person meeting at which infringement evidence was presented directly to Lumicore's General Counsel and outside counsel. Despite these communications, Lumicore declined to take a license on July 10, 2023, and continued launching infringing products, including the LumiEdge 1600G-LR in Q4 2023.
6. OWS asserts claims for direct infringement under 35 U.S.C. § 271(a), induced infringement under 35 U.S.C. § 271(b), contributory infringement under 35 U.S.C. § 271(c), and willful infringement warranting enhanced damages under 35 U.S.C. § 284. OWS alleges literal infringement of the asserted claims and, as to certain claims of the '193 Patent and the '015 Patent, infringement under the doctrine of equivalents.
II. THE PARTIES
A. Plaintiff Optiwave Semiconductor Corp.
7. Plaintiff Optiwave Semiconductor Corp. ("OWS") is a corporation duly organized and existing under the laws of the State of Delaware. OWS maintains its principal place of business and headquarters at 4810 Bayside Technology Parkway, Suite 300, Santa Clara, California 95054. OWS's registered agent in Delaware is Capitol Statutory Services, Inc., located at 1209 Orange Street, Wilmington, Delaware 19801. OWS's Employer Identification Number is 46-3921087.
8. OWS was founded in 2011 and has grown to employ approximately 1,250 employees across its design, engineering, manufacturing, and administrative functions. OWS reported fiscal year 2023 revenue of $487.3 million and fiscal year 2023 net income of $61.4 million, as reflected in audited financial statements prepared by Gresham & Whitfield LLP, OWS's independent public accounting firm.
9. OWS's executive leadership includes Dr. Priya Ramaswamy, Chief Executive Officer; Dr. Jian-Wei Huang, Chief Technology Officer; Rebecca Tanaka, General Counsel; Dr. Nikolai Petrov, Vice President of Engineering (Photonics Division); and David Leitner, Chief Financial Officer. The Chair of OWS's Board of Directors is Franklin Osei, a designee of Ridgeline Capital Partners, LP. Ridgeline Capital Partners holds a 55% ownership stake in OWS, acquired in 2019 for approximately $780 million.
10. OWS's key product lines include the OWS-400ZR, OWS-800XR, and OWS-1600DR transceiver module families, which are designed for use in hyperscale data centers and telecommunications networks. These product lines embody the inventions covered by the Asserted Patents and have achieved substantial commercial success, generating approximately $310 million in revenue in fiscal year 2023.
11. OWS is the owner by assignment of all right, title, and interest in the Asserted Patents, including the exclusive right to sue for past, present, and future infringement. OWS possesses all substantial rights in each of the Asserted Patents, as described further in Section V below.
B. Defendant Lumicore Technologies, Inc.
12. Defendant Lumicore Technologies, Inc. ("Lumicore") is a corporation duly organized and existing under the laws of the State of Delaware. Lumicore maintains its principal place of business and headquarters at 9200 Spectrum Boulevard, Building C, Austin, Texas 78759. Lumicore's registered agent in Delaware is National Agent Services Corp., located at 850 New Burton Road, Suite 201, Dover, Delaware 19904. Lumicore's Employer Identification Number is 81-2547639.
13. Lumicore was founded in 2015 and has grown to employ approximately 870 employees. Lumicore designs, manufactures, and sells silicon-photonics transceiver modules and related components for data-center and telecommunications applications. Lumicore's estimated fiscal year 2023 revenue was approximately $312.6 million.
14. Lumicore completed its initial public offering on the Nasdaq Stock Market in March 2022 at a price of $24.00 per share. As of the date of this filing, Lumicore's share price is approximately $37.00 per share, with approximately 91.8 million shares outstanding, resulting in a market capitalization of approximately $3.4 billion.
15. Lumicore's executive leadership includes Thomas "Tom" Kessler, Chief Executive Officer; Dr. Sandra Michaud, Chief Technology Officer; Raymond Bautista, General Counsel; Dr. Eric Dalmqvist, Vice President of Product Development; and Janet Moreno, Chief Financial Officer.
16. On information and belief, Lumicore makes, uses, sells, offers for sale in the United States, and/or imports into the United States the Accused Products identified herein, including the LumiLink 400G-ZR+, LumiLink 800G-DR8, and LumiEdge 1600G-LR transceiver modules. On information and belief, Lumicore manufactures the Accused Products at its facilities in Austin, Texas and at contract manufacturing facilities abroad, and sells and distributes the Accused Products throughout the United States, including within this judicial district.
III. JURISDICTION
17. This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. §§ 1331 and 1338(a) because this action arises under the patent laws of the United States, 35 U.S.C. §§ 1 et seq. This Court has authority to grant declaratory and injunctive relief pursuant to 28 U.S.C. §§ 2201 and 2202, and to award damages and other relief under 35 U.S.C. §§ 283, 284, and 285.
18. This Court has personal jurisdiction over Lumicore. Lumicore is subject to the personal jurisdiction of this Court because Lumicore: (a) is registered to do business in the State of Texas; (b) maintains a sales office and technical support center at 2700 Earl Campbell Parkway, Suite 150, Tyler, Texas 75701, within this judicial district; (c) has sold, offered for sale, and/or imported the Accused Products in this judicial district; (d) has committed acts of patent infringement in this judicial district; and (e) has purposefully directed activities toward residents of this judicial district, including selling Accused Products to customers with facilities in the Eastern District of Texas.
19. Lumicore's contacts with this judicial district are continuous and systematic, and are sufficient to confer both general and specific personal jurisdiction. Lumicore's acts of infringement have been committed in and have caused injury within this judicial district. Lumicore has purposefully availed itself of the privilege of conducting business within the State of Texas and within this judicial district, and the exercise of jurisdiction over Lumicore comports with due process.
IV. VENUE
20. Venue is proper in the Eastern District of Texas pursuant to 28 U.S.C. § 1400(b) because Lumicore has committed acts of infringement in this judicial district and has a regular and established place of business in this judicial district.
21. Lumicore has committed acts of infringement in this judicial district by making, using, selling, offering for sale, and/or importing the Accused Products within the Eastern District of Texas, including through sales to customers located in this judicial district.
22. Lumicore has a regular and established place of business in this judicial district, specifically its sales office and technical support center located at 2700 Earl Campbell Parkway, Suite 150, Tyler, Texas 75701. On information and belief, Lumicore has maintained this facility continuously since at least 2021. The facility is staffed by Lumicore employees who conduct sales, provide technical support to customers, and perform other business activities on behalf of Lumicore.
23. In addition, Lumicore has sold Accused Products to at least three customers with facilities in this judicial district, including:
(a) Pinnacle Data Systems, LLC, located at 1800 Judson Road, Longview, Texas 75601;
(b) Frontier Cloud Services, Inc., located at 400 East Houston Street, marshall, Texas 75670; and
(c) CrossPoint Networking Corp., located at 7500 Dallas Parkway, Suite 200, Plano, Texas 75024 (transferred to the Tyler Division for case management purposes).
24. On information and belief, each of these customers has purchased and deployed Accused Products at the facilities identified above, and Lumicore has provided technical support and integration assistance to these customers in connection with the deployment of the Accused Products.
V. THE ASSERTED PATENTS
A. The '847 Patent (U.S. Patent No. 10,234,847)
25. On March 19, 2019, the United States Patent and Trademark Office ("USPTO") duly and legally issued U.S. Patent No. 10,234,847, entitled "Multi-Channel Silicon Photonic Waveguide Multiplexer with Low Insertion Loss" (the "'847 Patent"). The '847 Patent was filed on September 14, 2016. The '847 Patent was originally assigned to Optiwave Semiconductor Corp., and OWS remains the current assignee of the '847 Patent.
26. The '847 Patent is a utility patent directed to inventive waveguide multiplexer architectures for silicon photonics platforms. The '847 Patent describes and claims novel multi-channel waveguide multiplexer structures that achieve low insertion loss while maintaining high channel isolation, addressing critical performance challenges in high-bandwidth optical transceiver designs. The named inventors of the '847 Patent are Dr. Jian-Wei Huang, Dr. Nikolai Petrov, and Dr. Lisa Yamamoto.
27. The '847 Patent is in the same patent family as the '562 Patent. Specifically, the '847 Patent is a continuation of Application No. 14/552,901, filed November 22, 2014, which issued as the '562 Patent. The '847 Patent and the '562 Patent share a common specification and priority date.
28. The '847 Patent has been maintained in full force and effect, and all required maintenance fees have been timely paid. The '847 Patent has not been the subject of any reexamination, reissue, or inter partes review proceeding.
29. A true and correct copy of the '847 Patent is attached hereto as Exhibit A and is incorporated herein by reference.
B. The '193 Patent (U.S. Patent No. 10,891,193)
30. On January 12, 2021, the USPTO duly and legally issued U.S. Patent No. 10,891,193, entitled "High-Bandwidth Coherent Optical Transceiver Integrated on Silicon Substrate" (the "'193 Patent"). The '193 Patent was filed on April 7, 2017. The '193 Patent was originally assigned to Optiwave Semiconductor Corp., and OWS remains the current assignee of the '193 Patent.
31. The '193 Patent is a utility patent directed to high-bandwidth coherent optical transceiver architectures that are monolithically integrated on a silicon substrate. The '193 Patent describes and claims novel transceiver designs that integrate coherent detection and modulation functionalities on a single silicon photonic chip, enabling high data-rate optical communications with reduced size, power consumption, and cost as compared to prior art discrete-component approaches. The named inventors of the '193 Patent are Dr. Jian-Wei Huang, Dr. Priya Ramaswamy, and Dr. Farhan Aziz.
32. The '193 Patent claims priority to U.S. Provisional Application No. 62/499,117, filed on April 7, 2017. The '193 Patent shares this common provisional application with the '015 Patent, as described below.
33. The '193 Patent has been maintained in full force and effect, and all required maintenance fees have been timely paid. The '193 Patent has not been the subject of any reexamination, reissue, or inter partes review proceeding.
34. A true and correct copy of the '193 Patent is attached hereto as Exhibit B and is incorporated herein by reference.
C. The '562 Patent (U.S. Patent No. 9,678,562)
35. On June 13, 2017, the USPTO duly and legally issued U.S. Patent No. 9,678,562, entitled "Method for Thermal Management of Photonic Integrated Circuits Using Embedded Micro-Channel Heat Sinks" (the "'562 Patent"). The '562 Patent was filed on November 22, 2014. The '562 Patent was originally assigned to Solara Optics, Inc.
36. The '562 Patent is a utility patent directed to methods and structures for managing thermal dissipation in photonic integrated circuits through the use of embedded micro-channel heat sinks. The '562 Patent describes and claims novel thermal management approaches that enable photonic integrated circuits to operate at higher power levels and data rates without performance degradation due to thermal effects. These innovations are critical to the reliable operation of high-bandwidth optical transceiver modules in demanding data-center environments. The named inventors of the '562 Patent are Dr. Arun Krishnamurthy and Dr. Elena Vasquez.
37. OWS is the current assignee of the '562 Patent. OWS acquired all right, title, and interest in the '562 Patent from Solara Optics, Inc. pursuant to an Asset Purchase Agreement dated June 15, 2018 (the "Solara APA"). The Solara APA was executed for a total consideration of $34.5 million and conveyed twelve patents from Solara Optics to OWS, including the '562 Patent. The assignment of the '562 Patent was duly recorded with the USPTO.
38. The '562 Patent is in the same patent family as the '847 Patent. Specifically, the '847 Patent is a continuation of the application that issued as the '562 Patent. The '562 Patent and the '847 Patent share a common specification and priority date.
39. The '562 Patent has been maintained in full force and effect, and all required maintenance fees have been timely paid. The '562 Patent has not been the subject of any reexamination, reissue, or inter partes review proceeding.
40. A true and correct copy of the '562 Patent is attached hereto as Exhibit C and is incorporated herein by reference.
D. The '015 Patent (U.S. Patent No. 11,402,015)
41. On August 2, 2022, the USPTO duly and legally issued U.S. Patent No. 11,402,015, entitled "Polarization-Diverse Grating Coupler for Silicon Photonic Transceivers" (the "'015 Patent"). The '015 Patent was filed on August 30, 2019. The '015 Patent was originally assigned to Optiwave Semiconductor Corp., and OWS remains the current assignee of the '015 Patent.
42. The '015 Patent is a utility patent directed to polarization-diverse grating coupler designs for silicon photonic transceivers. The '015 Patent describes and claims novel grating coupler structures that efficiently couple light into and out of silicon photonic waveguides while accommodating both polarization states, thereby improving the performance and reliability of silicon photonic transceiver modules. The named inventors of the '015 Patent are Dr. Jian-Wei Huang, Dr. Nikolai Petrov, and Dr. Meiling Zhou.
43. The '015 Patent claims priority to U.S. Provisional Application No. 62/499,117, filed on April 7, 2017. The '015 Patent shares this common provisional application with the '193 Patent, as described above.
44. The '015 Patent has been maintained in full force and effect, and all required maintenance fees have been timely paid. The '015 Patent has not been the subject of any reexamination, reissue, or inter partes review proceeding.
45. A true and correct copy of the '015 Patent is attached hereto as Exhibit D and is incorporated herein by reference.
E. Chain of Title
46. OWS is the owner by assignment of all right, title, and interest in the '847 Patent, the '193 Patent, and the '015 Patent. Each of these patents was originally assigned to OWS by the named inventors pursuant to written assignments that were duly recorded with the USPTO.
47. OWS acquired all right, title, and interest in the '562 Patent from Solara Optics, Inc. pursuant to the Solara APA dated June 15, 2018. The assignment of the '562 Patent was duly recorded with the USPTO, and OWS possesses all rights of the original assignee, including the right to sue for past infringement.
48. OWS possesses all substantial rights in each of the Asserted Patents, including the exclusive right to make, use, sell, offer for sale, and import products covered by the patents; the exclusive right to license the patents; and the exclusive right to sue for past, present, and future infringement. OWS has not granted any exclusive licenses under the Asserted Patents that would divest it of standing to bring this action.
49. All four of the Asserted Patents were prosecuted before the USPTO by Cascade IP Advisors, LLC, with Dr. Martin Chu serving as lead prosecution attorney. The prosecution histories of the Asserted Patents reflect that each patent was examined on the merits and issued over the prior art cited during prosecution.
50. No inter partes review petitions have been filed against any of the Asserted Patents to date. None of the Asserted Patents has been the subject of any post-grant review, ex parte reexamination, or other validity challenge before the USPTO or any court.
VI. THE ACCUSED PRODUCTS
51. Lumicore has made, used, sold, offered for sale in the United States, and/or imported into the United States three product lines that infringe the Asserted Patents: the LumiLink 400G-ZR+, the LumiLink 800G-DR8, and the LumiEdge 1600G-LR (collectively, the "Accused Products"). Each of these products is described below.
A. LumiLink 400G-ZR+
52. The LumiLink 400G-ZR+ is a 400-gigabit coherent optical transceiver module designed for data-center and metro network applications. On information and belief, the LumiLink 400G-ZR+ utilizes silicon photonics technology, including integrated waveguide multiplexer structures, coherent transceiver circuitry integrated on a silicon substrate, and embedded micro-channel heat-sink structures, to achieve high-bandwidth coherent optical communications.
53. On information and belief, Lumicore launched the LumiLink 400G-ZR+ in Q3 2022. The LumiLink 400G-ZR+ generated estimated revenue of approximately $94.8 million in fiscal year 2023, as reported in Lumicore's segment disclosures in its public filings with the U.S. Securities and Exchange Commission.
54. The LumiLink 400G-ZR+ is accused of infringing the '847 Patent, the '193 Patent, and the '562 Patent, as set forth in detail in Counts I, II, and III below.
B. LumiLink 800G-DR8
55. The LumiLink 800G-DR8 is an 800-gigabit direct-detect optical transceiver module designed for hyperscale data-center interconnects. On information and belief, the LumiLink 800G-DR8 utilizes silicon photonics technology, including integrated waveguide multiplexer structures, coherent transceiver circuitry integrated on a silicon substrate, embedded micro-channel heat-sink structures, and polarization-diverse grating coupler components, to achieve high-bandwidth optical communications at 800 gigabits per second.
56. On information and belief, Lumicore launched the LumiLink 800G-DR8 in Q1 2023, after Lumicore had received OWS's first licensing letter identifying the '847, '193, and '562 Patents and providing specific claim charts demonstrating infringement. The LumiLink 800G-DR8 generated estimated revenue of approximately $128.4 million in fiscal year 2023, as reported in Lumicore's segment disclosures.
57. The LumiLink 800G-DR8 is accused of infringing the '847 Patent, the '193 Patent, the '562 Patent, and the '015 Patent, as set forth in detail in Counts I, II, III, and IV below.
C. LumiEdge 1600G-LR
58. The LumiEdge 1600G-LR is a 1.6-terabit long-reach optical transceiver module designed for data-center and telecom applications. On information and belief, the LumiEdge 1600G-LR utilizes silicon photonics technology, including coherent transceiver circuitry integrated on a silicon substrate and polarization-diverse grating coupler components, to achieve ultra-high-bandwidth optical communications at 1.6 terabits per second over long-reach distances.
59. On information and belief, Lumicore launched the LumiEdge 1600G-LR in Q4 2023, more than nine months after Lumicore had received OWS's first licensing letter identifying the Asserted Patents, and more than five months after Lumicore had received OWS's supplemental licensing letter adding the '015 Patent and expanding the accused products. The LumiEdge 1600G-LR generated estimated revenue of approximately $41.7 million in fiscal year 2023 (reflecting a partial-year launch), as reported in Lumicore's segment disclosures.
60. The LumiEdge 1600G-LR is accused of infringing the '193 Patent and the '015 Patent, as set forth in detail in Counts II and IV below.
D. Total Accused Product Revenue
61. In the aggregate, the Accused Products generated total fiscal year 2023 revenue of approximately $264.9 million, consisting of approximately $94.8 million for the LumiLink 400G-ZR+, approximately $128.4 million for the LumiLink 800G-DR8, and approximately $41.7 million for the LumiEdge 1600G-LR.
62. On information and belief, total Accused Product revenue for the infringement period from Q3 2022 (the launch of the first Accused Product, the LumiLink 400G-ZR+) through Q1 2024 is approximately $378.2 million.
63. On information and belief, projected Accused Product revenue from Q3 2022 through Q4 2025 (the estimated trial date) is approximately $714.6 million, based on Lumicore's publicly disclosed revenue growth trajectory and analyst estimates. OWS reserves the right to update this estimate as additional discovery and financial information becomes available.
VII. PRE-SUIT NOTICE AND LICENSING EFFORTS
64. OWS made extensive good-faith efforts to notify Lumicore of its infringement of the Asserted Patents and to resolve this dispute without litigation. The history of those efforts is set forth below.
65. In October 2022, OWS's internal engineering team, under the direction of Chief Technology Officer Dr. Jian-Wei Huang, identified potential infringement of OWS's patents by Lumicore's LumiLink 400G-ZR+ product. OWS's engineers conducted a preliminary technical analysis of the LumiLink 400G-ZR+ based on publicly available product documentation, datasheets, and technical presentations by Lumicore, and determined that the product appeared to incorporate technology covered by the Asserted Patents.
66. In November 2022, OWS retained Benchmark Semiconductor Analysis, LLC ("Benchmark"), a leading independent semiconductor reverse-engineering and analysis firm, to perform a detailed teardown and reverse-engineering analysis of the LumiLink 400G-ZR+ module. The lead engineer on the Benchmark engagement was Kevin Ng, a recognized expert in silicon photonics device characterization with over fifteen years of experience in semiconductor reverse engineering.
67. On December 12, 2022, Benchmark delivered its teardown report for the LumiLink 400G-ZR+ module. The Benchmark report confirmed the presence of waveguide multiplexer structures and thermal management micro-channel features in the LumiLink 400G-ZR+ that correspond to claimed elements of the '847 Patent and the '562 Patent. The Benchmark report also identified coherent transceiver integration on a silicon substrate corresponding to claimed elements of the '193 Patent.
68. On January 15, 2023, FairPoint Licensing Group, LLC ("FairPoint"), acting as OWS's authorized licensing agent, sent a first licensing and notice letter to Lumicore's General Counsel, Raymond Bautista. The letter was sent by certified mail to Lumicore's headquarters at 9200 Spectrum Boulevard, Building C, Austin, Texas 78759, and by email to Mr. Bautista. Angela Reeves, Managing Director of FairPoint, authored and signed the letter on behalf of OWS. The January 15, 2023 letter specifically identified the '847 Patent, the '193 Patent, and the '562 Patent and provided specific claim charts demonstrating infringement of particular claims of each patent by the LumiLink 400G-ZR+ product. The letter invited Lumicore to enter into licensing negotiations and proposed a meeting to discuss the matter.
69. On February 28, 2023, Lumicore responded to the January 15, 2023 licensing letter through outside counsel at Hawthorne Vega & Cruz LLP. The response, authored by Catherine "Kate" Rourke of Hawthorne Vega & Cruz, disputed infringement and questioned the validity of the identified patents. The response did not provide any specific technical or legal basis for Lumicore's position, nor did it identify any prior art or invalidity theories.
70. On April 20, 2023, an in-person licensing meeting took place in Austin, Texas. The meeting was attended by Angela Reeves of FairPoint, Rebecca Tanaka (OWS General Counsel), Raymond Bautista (Lumicore General Counsel), and Catherine "Kate" Rourke (Hawthorne Vega & Cruz LLP). At the meeting, Ms. Reeves and Ms. Tanaka presented detailed infringement evidence, including claim charts and excerpts from the Benchmark teardown report, directly to Lumicore's representatives. Lumicore's representatives acknowledged receipt of the materials but did not provide any substantive response at the meeting. No resolution was reached.
71. On May 15, 2023, FairPoint sent a second licensing letter to Lumicore's General Counsel, Raymond Bautista. This supplemental letter added the '015 Patent (which had issued on August 2, 2022) to the list of asserted patents and expanded the accused products to include the LumiLink 800G-DR8, which had been launched by Lumicore in Q1 2023. The May 15, 2023 letter included additional claim charts demonstrating infringement of the '015 Patent and updated claim charts for the other Asserted Patents as applied to the LumiLink 800G-DR8.
72. On July 10, 2023, Lumicore formally declined to take a license. In its response, Lumicore stated that it had obtained "competent legal opinions" concluding that its products do not infringe the Asserted Patents, but Lumicore refused to produce or disclose the substance of those opinions.
73. Notwithstanding the extensive pre-suit notice described above, Lumicore launched an additional accused product, the LumiEdge 1600G-LR, in Q4 2023. The LumiEdge 1600G-LR incorporates technology from the '193 Patent and the '015 Patent that had been specifically identified in OWS's licensing communications. Lumicore launched the LumiEdge 1600G-LR more than nine months after receiving OWS's first licensing letter and more than five months after receiving OWS's supplemental letter, and without conducting any design-around to avoid OWS's patent rights.
74. OWS formally engaged Calderwood & Harkness LLP as litigation counsel on March 18, 2024, after exhausting its pre-suit licensing efforts.
VIII. FACTUAL ALLEGATIONS SUPPORTING INFRINGEMENT
A. OWS's Technology and Innovation
75. OWS was founded in 2011 by Dr. Priya Ramaswamy and Dr. Jian-Wei Huang with the mission of developing next-generation silicon photonics technologies for high-speed data-center interconnects. Since its founding, OWS has invested heavily in research and development in silicon photonics technologies, devoting an average of 22% of annual revenue to R&D activities over the past five fiscal years. OWS's R&D expenditures have totaled more than $480 million since the company's founding.
76. OWS's key product lines—the OWS-400ZR, OWS-800XR, and OWS-1600DR transceiver module families—directly embody the inventions claimed in the Asserted Patents. These products have achieved substantial commercial success in the marketplace, generating approximately $310 million of OWS's fiscal year 2023 revenue of $487.3 million. OWS's products are deployed in the data centers of many of the world's largest cloud computing providers and telecommunications operators.
77. OWS is the third-largest United States supplier of silicon-photonics transceiver modules for hyperscale data centers, competing in a market that is projected to reach $8.2 billion in annual revenue by 2027. OWS's competitive position in this market is directly attributable to the technological advantages conferred by its patented innovations, including the waveguide multiplexer architectures, coherent transceiver integration, thermal management methods, and grating coupler designs covered by the Asserted Patents.
78. OWS holds 142 issued United States patents and 58 pending patent applications, reflecting a sustained commitment to innovation and intellectual property protection. OWS's patent portfolio covers a broad range of silicon photonics technologies and represents the fruits of over a decade of intensive research and development.
B. Lumicore's Knowledge of OWS's Patents
79. On information and belief, Lumicore had knowledge of and access to OWS's patent portfolio during the design phase of the Accused Products. The silicon photonics transceiver market is a specialized field with a limited number of participants, and OWS's published patent applications and issued patents are widely known in the industry.
80. On information and belief, Lumicore's engineering team, including Dr. Sandra Michaud (Lumicore's Chief Technology Officer) and other engineers involved in the design of the LumiLink product line, reviewed OWS's published patent applications during the design phase of the LumiLink 400G-ZR+ product in 2021–2022. On information and belief, Lumicore's engineers specifically reviewed OWS's published patent application No. 2018/0123456, which corresponds to the '193 Patent, and were aware of the specific claims and teachings of that application during the design phase.
81. On information and belief, Melissa Chen, a former Lumicore engineer who is now employed by Veridian Photonics, Inc., participated in the LumiLink 400G-ZR+ design effort at Lumicore. Ms. Chen has knowledge that Lumicore's engineering team accessed and reviewed OWS's published patent application No. 2018/0123456 (corresponding to the '193 Patent) during the product design phase. On information and belief, Ms. Chen's knowledge, if disclosed in discovery, will further establish that Lumicore was aware of OWS's patented technology before launching the first Accused Product.
82. In addition to Lumicore's pre-notice awareness of OWS's patent portfolio, Lumicore was placed on actual notice of the Asserted Patents and specific infringement allegations through the FairPoint licensing letters of January 15, 2023 and May 15, 2023, and the in-person licensing meeting of April 20, 2023, as described in Section VII above. Despite this actual notice, Lumicore continued to sell the LumiLink 400G-ZR+ and LumiLink 800G-DR8 products and launched the new LumiEdge 1600G-LR product, thereby demonstrating a deliberate disregard for OWS's patent rights.
C. Benchmark Teardown Evidence
83. As described in Section VII above, OWS retained Benchmark Semiconductor Analysis, LLC to perform detailed teardown and reverse-engineering analyses of the Accused Products. Benchmark performed comprehensive analyses of all three Accused Products:
(a) LumiLink 400G-ZR+: Benchmark's teardown report was delivered on December 12, 2022. The report documented the internal architecture of the LumiLink 400G-ZR+ transceiver module, including detailed photographic documentation and analysis of the silicon photonic die, waveguide structures, thermal management features, and associated electronic and optical components.
(b) LumiLink 800G-DR8: Benchmark performed a follow-on teardown analysis of the LumiLink 800G-DR8 module, which was completed in June 2023. This analysis documented the presence of similar silicon photonics structures in the 800G-DR8 product, as well as additional polarization-diverse grating coupler components not present in the 400G-ZR+ product.
(c) LumiEdge 1600G-LR: Benchmark performed a teardown analysis of the LumiEdge 1600G-LR module, which was completed in February 2024. This analysis confirmed the presence of coherent transceiver integration on a silicon substrate and polarization-diverse grating coupler components in the 1600G-LR product.
84. The Benchmark teardown analyses confirmed the presence in each Accused Product of structures and features corresponding to the claimed elements of the Asserted Patents. Specifically, the teardown analyses identified:
(a) Multi-channel waveguide multiplexer structures with low insertion loss characteristics corresponding to the claimed elements of the '847 Patent;
(b) coherent optical transceiver circuitry monolithically integrated on a silicon substrate corresponding to the claimed elements of the '193 Patent;
(c) Embedded micro-channel heat-sink structures for thermal management of photonic integrated circuits corresponding to the claimed elements of the '562 Patent; and
(d) Polarization-diverse grating coupler components corresponding to the claimed elements of the '015 Patent.
85. The Benchmark teardown evidence supports OWS's allegations that each of the Accused Products infringes the Asserted Patents, as set forth in detail in Counts I through VII below.
COUNT I: INFRINGEMENT OF THE '847 PATENT
(U.S. Patent No. 10,234,847)
86. OWS incorporates by reference paragraphs 1 through 85 above as though fully set forth herein.
87. OWS is the owner of all right, title, and interest in the '847 Patent, entitled "Multi-Channel Silicon Photonic Waveguide Multiplexer with Low Insertion Loss," which was duly and legally issued by the USPTO on March 19, 2019. The '847 Patent is valid, enforceable, and in full force and effect.
88. Lumicore has directly infringed and continues to directly infringe one or more claims of the '847 Patent, including at least Claims 1, 3, 5, 9, and 14, in violation of 35 U.S.C. § 271(a), by making, using, selling, offering for sale in the United States, and/or importing into the United States the LumiLink 400G-ZR+ and LumiLink 800G-DR8 products without the authorization or consent of OWS.
89. Each of the accused LumiLink 400G-ZR+ and LumiLink 800G-DR8 products meets every limitation of the asserted claims of the '847 Patent, literally. On information and belief, and as confirmed by the Benchmark teardown analyses, the accused products incorporate multi-channel silicon photonic waveguide multiplexer structures that satisfy each element of at least Claims 1, 3, 5, 9, and 14 of the '847 Patent.
90. By way of example and without limitation, independent Claim 1 of the '847 Patent claims a multi-channel silicon photonic waveguide multiplexer comprising, inter alia, a plurality of arrayed waveguide channels formed on a silicon substrate, a star coupler input region, and a star coupler output region, configured to achieve low insertion loss across a specified wavelength range. The Benchmark teardown analyses confirmed that the LumiLink 400G-ZR+ and LumiLink 800G-DR8 products each include a multi-channel waveguide multiplexer with these structural and functional characteristics.
91. Detailed claim charts setting forth the specific accused instrumentalities and the basis for infringement on a limitation-by-limitation basis will be provided in OWS's infringement contentions pursuant to this Court's Patent Rules and the parties' agreed scheduling order.
92. Lumicore's infringement of the '847 Patent has been and continues to be without license or authorization from OWS. Lumicore's infringement has caused and will continue to cause OWS irreparable injury and damages in an amount to be proven at trial.
COUNT II: INFRINGEMENT OF THE '193 PATENT
(U.S. Patent No. 10,891,193)
93. OWS incorporates by reference paragraphs 1 through 92 above as though fully set forth herein.
94. OWS is the owner of all right, title, and interest in the '193 Patent, entitled "High-Bandwidth Coherent Optical Transceiver Integrated on Silicon Substrate," which was duly and legally issued by the USPTO on January 12, 2021. The '193 Patent is valid, enforceable, and in full force and effect.
95. Lumicore has directly infringed and continues to directly infringe one or more claims of the '193 Patent, including at least Claims 1, 3, 7, 10, 15, and 18, in violation of 35 U.S.C. § 271(a), by making, using, selling, offering for sale in the United States, and/or importing into the United States the LumiLink 400G-ZR+, LumiLink 800G-DR8, and LumiEdge 1600G-LR products without the authorization or consent of OWS.
96. Each of the accused LumiLink 400G-ZR+, LumiLink 800G-DR8, and LumiEdge 1600G-LR products meets every limitation of the asserted claims of the '193 Patent, either literally or under the doctrine of equivalents. On information and belief, and as confirmed by the Benchmark teardown analyses, the accused products incorporate high-bandwidth coherent optical transceiver circuitry monolithically integrated on a silicon substrate that satisfies each element of at least Claims 1, 3, 7, 10, 15, and 18 of the '193 Patent.
97. By way of example and without limitation, independent Claim 1 of the '193 Patent claims a high-bandwidth coherent optical transceiver integrated on a silicon substrate, comprising, inter alia, a coherent detection module, an optical modulator, and a wavelength-tunable laser source, all monolithically integrated on a single silicon photonic die. The Benchmark teardown analyses confirmed that each of the accused products includes a coherent optical transceiver with these structural and functional characteristics integrated on a silicon substrate.
98. With respect to Claims 3 and 7 of the '193 Patent, OWS alleges infringement both literally and under the doctrine of equivalents. Even if Lumicore's accused designs do not literally satisfy the "coherent detection module" limitation recited in Claims 3 and 7 of the '193 Patent, the corresponding elements in the accused products perform substantially the same function, in substantially the same way, to achieve substantially the same result as the claimed "coherent detection module" element. Specifically, on information and belief, the accused products' coherent detection circuitry performs the function of detecting coherent optical signals, in the same way of using optical mixing and balanced photodetection, to achieve the same result of recovering amplitude and phase information from the received optical signals, as the claimed "coherent detection module."
99. Detailed claim charts setting forth the specific accused instrumentalities and the basis for infringement on a limitation-by-limitation basis will be provided in OWS's infringement contentions pursuant to this Court's Patent Rules and the parties' agreed scheduling order.
100. Lumicore's infringement of the '193 Patent has been and continues to be without license or authorization from OWS. Lumicore's infringement has caused and will continue to cause OWS irreparable injury and damages in an amount to be proven at trial.
COUNT III: INFRINGEMENT OF THE '562 PATENT
(U.S. Patent No. 9,678,562)
101. OWS incorporates by reference paragraphs 1 through 100 above as though fully set forth herein.
102. OWS is the owner of all right, title, and interest in the '562 Patent, entitled "Method for Thermal Management of Photonic Integrated Circuits Using Embedded Micro-Channel Heat Sinks," which was duly and legally issued by the USPTO on June 13, 2017. OWS acquired the '562 Patent from Solara Optics, Inc. pursuant to the Solara APA dated June 15, 2018, as described above. The '562 Patent is valid, enforceable, and in full force and effect.
103. Lumicore has directly infringed and continues to directly infringe one or more claims of the '562 Patent, including at least Claims 1, 4, 6, and 11, in violation of 35 U.S.C. § 271(a), by making, using, selling, offering for sale in the United States, and/or importing into the United States the LumiLink 400G-ZR+ and LumiLink 800G-DR8 products without the authorization or consent of OWS.
104. Each of the accused LumiLink 400G-ZR+ and LumiLink 800G-DR8 products meets every limitation of the asserted claims of the '562 Patent, literally. On information and belief, and as confirmed by the Benchmark teardown analyses, the accused products incorporate embedded micro-channel heat-sink structures for thermal management of photonic integrated circuits that satisfy each element of at least Claims 1, 4, 6, and 11 of the '562 Patent.
105. By way of example and without limitation, independent Claim 1 of the '562 Patent claims a method for thermal management of a photonic integrated circuit, comprising, inter alia, forming a plurality of micro-channels within a substrate underlying the photonic integrated circuit, circulating a coolant fluid through the micro-channels, and maintaining the photonic integrated circuit within a specified operating temperature range. The Benchmark teardown analyses confirmed that the LumiLink 400G-ZR+ and LumiLink 800G-DR8 products each incorporate embedded micro-channel heat-sink structures consistent with these claimed method steps.
106. Detailed claim charts setting forth the specific accused instrumentalities and the basis for infringement on a limitation-by-limitation basis will be provided in OWS's infringement contentions pursuant to this Court's Patent Rules and the parties' agreed scheduling order.
107. Lumicore's infringement of the '562 Patent has been and continues to be without license or authorization from OWS. Lumicore's infringement has caused and will continue to cause OWS irreparable injury and damages in an amount to be proven at trial.
COUNT IV: INFRINGEMENT OF THE '015 PATENT
(U.S. Patent No. 11,402,015)
108. OWS incorporates by reference paragraphs 1 through 107 above as though fully set forth herein.
109. OWS is the owner of all right, title, and interest in the '015 Patent, entitled "Polarization-Diverse Grating Coupler for Silicon Photonic Transceivers," which was duly and legally issued by the USPTO on August 2, 2022. The '015 Patent is valid, enforceable, and in full force and effect.
110. Lumicore has directly infringed and continues to directly infringe one or more claims of the '015 Patent, including at least Claims 1, 5, 8, 12, and 16, in violation of 35 U.S.C. § 271(a), by making, using, selling, offering for sale in the United States, and/or importing into the United States the LumiLink 800G-DR8 and LumiEdge 1600G-LR products without the authorization or consent of OWS.
111. Each of the accused LumiLink 800G-DR8 and LumiEdge 1600G-LR products meets every limitation of the asserted claims of the '015 Patent, either literally or under the doctrine of equivalents. On information and belief, and as confirmed by the Benchmark teardown analyses, the accused products incorporate polarization-diverse grating coupler components that satisfy each element of at least Claims 1, 5, 8, 12, and 16 of the '015 Patent.
112. By way of example and without limitation, independent Claim 1 of the '015 Patent claims a polarization-diverse grating coupler for a silicon photonic transceiver, comprising, inter alia, a grating structure formed on a silicon waveguide, a polarization splitter-rotator, and a coupling region configured to receive and separate orthogonal polarization components of an incoming optical signal. The Benchmark teardown analyses confirmed that the LumiLink 800G-DR8 and LumiEdge 1600G-LR products each include a polarization-diverse grating coupler with these structural and functional characteristics.
113. With respect to Claim 12 of the '015 Patent, OWS alleges infringement both literally and under the doctrine of equivalents. Even if Lumicore's accused designs do not literally satisfy the "two-dimensional sub-wavelength grating" limitation recited in Claim 12 of the '015 Patent, the corresponding elements in the accused products perform substantially the same function, in substantially the same way, to achieve substantially the same result as the claimed element. Specifically, on information and belief, the accused products' grating structures perform the function of diffracting and coupling optical signals with polarization diversity, in the same way of using a periodic structure with feature dimensions smaller than the operating wavelength to manipulate the optical mode, to achieve the same result of efficient, low-loss polarization-diverse coupling into and out of silicon photonic waveguides, as the claimed "two-dimensional sub-wavelength grating."
114. Detailed claim charts setting forth the specific accused instrumentalities and the basis for infringement on a limitation-by-limitation basis will be provided in OWS's infringement contentions pursuant to this Court's Patent Rules and the parties' agreed scheduling order.
115. Lumicore's infringement of the '015 Patent has been and continues to be without license or authorization from OWS. Lumicore's infringement has caused and will continue to cause OWS irreparable injury and damages in an amount to be proven at trial.
COUNT V: INDUCED INFRINGEMENT
(All Four Asserted Patents — 35 U.S.C. § 271(b))
116. OWS incorporates by reference paragraphs 1 through 115 above as though fully set forth herein.
117. Lumicore has induced, and continues to induce, infringement of the Asserted Patents by third parties in violation of 35 U.S.C. § 271(b).
118. Lumicore has had knowledge of the Asserted Patents at least since receipt of FairPoint's January 15, 2023 licensing letter, which specifically identified the '847 Patent, the '193 Patent, and the '562 Patent and provided claim charts demonstrating infringement. Lumicore has had knowledge of the '015 Patent at least since receipt of FairPoint's May 15, 2023 supplemental licensing letter, which specifically identified the '015 Patent and provided claim charts demonstrating infringement.
119. Despite this knowledge, Lumicore has actively encouraged and aided its customers in using the Accused Products in a manner that directly infringes the Asserted Patents. Lumicore's customers who directly infringe include, but are not limited to, Pinnacle Data Systems, LLC, Frontier Cloud Services, Inc., and CrossPoint Networking Corp. On information and belief, each of these customers has purchased, deployed, and used the Accused Products in a manner that directly infringes one or more claims of the Asserted Patents.
120. Lumicore has induced infringement by its customers by, among other things, providing its customers with technical documentation, application notes, installation guides, integration support, configuration tools, software, firmware, and technical support services that instruct and enable customers to install, configure, and use the Accused Products in a manner that directly infringes the Asserted Patents. On information and belief, Lumicore's technical documentation and support materials instruct customers to use the Accused Products in configurations that practice the claimed methods and systems of the Asserted Patents.
121. Lumicore specifically intended to cause infringement by its customers and knew or should have known that its actions would induce direct infringement. Lumicore's knowledge of the Asserted Patents, combined with its active encouragement of infringing use by customers, demonstrates the specific intent required for inducement liability under 35 U.S.C. § 271(b).
122. Lumicore's inducement of infringement has caused and will continue to cause OWS irreparable injury and damages in an amount to be proven at trial.
COUNT VI: CONTRIBUTORY INFRINGEMENT
(All Four Asserted Patents — 35 U.S.C. § 271(c))
123. OWS incorporates by reference paragraphs 1 through 122 above as though fully set forth herein.
124. Lumicore has contributorily infringed, and continues to contributorily infringe, the Asserted Patents in violation of 35 U.S.C. § 271(c).
125. The Accused Products contain components and features that constitute material parts of the patented inventions claimed in the Asserted Patents. These components are especially made or especially adapted for use in an infringing manner and are not staple articles of commerce suitable for substantial non-infringing use.
126. Specifically, the following components of the Accused Products are especially made or adapted for infringing use:
(a) The multi-channel waveguide multiplexer structures in the LumiLink 400G-ZR+ and LumiLink 800G-DR8 products, which are material parts of the inventions claimed in the '847 Patent, are specifically designed to practice the claimed waveguide multiplexer architectures, and have no substantial non-infringing use;
(b) The coherent transceiver integration on silicon substrate in the LumiLink 400G-ZR+, LumiLink 800G-DR8, and LumiEdge 1600G-LR products, which is a material part of the inventions claimed in the '193 Patent, is specifically designed to practice the claimed coherent optical transceiver integration, and has no substantial non-infringing use;
(c) The embedded micro-channel heat-sink structures in the LumiLink 400G-ZR+ and LumiLink 800G-DR8 products, which are material parts of the inventions claimed in the '562 Patent, are specifically designed to practice the claimed thermal management methods, and have no substantial non-infringing use; and
(d) The polarization-diverse grating coupler components in the LumiLink 800G-DR8 and LumiEdge 1600G-LR products, which are material parts of the inventions claimed in the '015 Patent, are specifically designed to practice the claimed grating coupler designs, and have no substantial non-infringing use.
127. Lumicore had knowledge of the Asserted Patents, as set forth above, and knew that the accused components were especially made or adapted for use in infringing the Asserted Patents. Despite this knowledge, Lumicore has continued to sell and offer for sale the Accused Products containing these infringing components.
128. Lumicore's contributory infringement has caused and will continue to cause OWS irreparable injury and damages in an amount to be proven at trial.
COUNT VII: WILLFUL INFRINGEMENT AND REQUEST FOR ENHANCED DAMAGES
129. OWS incorporates by reference paragraphs 1 through 128 above as though fully set forth herein.
130. Lumicore's infringement of the Asserted Patents has been willful and deliberate, and OWS is entitled to enhanced damages up to three times the amount of compensatory damages pursuant to 35 U.S.C. § 284, as interpreted by the Supreme Court in Halo Electronics, Inc. v. Pulse Electronics, Inc., 579 U.S. 93 (2016). This is an egregious case of willful infringement that warrants the exercise of the Court's discretion to enhance damages.
131. Lumicore's willful infringement is evidenced by, at minimum, the following facts and circumstances:
(a) Actual Notice via Detailed Licensing Letter (January 15, 2023). FairPoint Licensing Group, LLC, acting as OWS's authorized licensing agent, sent a detailed licensing and notice letter to Lumicore's General Counsel, Raymond Bautista, on January 15, 2023. The letter specifically identified the '847 Patent, the '193 Patent, and the '562 Patent and provided detailed claim charts demonstrating infringement of specific claims of each patent by the LumiLink 400G-ZR+ product. This letter placed Lumicore on actual notice of infringement with specificity far exceeding the minimum required to establish knowledge.
(b) Supplemental Notice (May 15, 2023). A supplemental licensing letter was sent by FairPoint on May 15, 2023, adding the '015 Patent to the list of asserted patents and expanding the accused products to include the LumiLink 800G-DR8. This letter provided additional claim charts and further detailed the basis for OWS's infringement allegations.
(c) In-Person Presentation of Infringement Evidence (April 20, 2023). An in-person meeting was held on April 20, 2023 in Austin, Texas, at which OWS's representatives, Angela Reeves and Rebecca Tanaka, presented detailed infringement evidence—including claim charts and excerpts from the Benchmark teardown report—directly to Lumicore's General Counsel, Raymond Bautista, and Lumicore's outside counsel, Kate Rourke of Hawthorne Vega & Cruz LLP. Lumicore cannot credibly claim ignorance of OWS's patent rights or the specific basis for infringement allegations after this face-to-face presentation.
(d) Launch of New Infringing Product After Full Notice (Q4 2023). After receiving full notice of infringement and specific claim charts as to each of the Asserted Patents, Lumicore launched a new accused product, the LumiEdge 1600G-LR, in Q4 2023. The LumiEdge 1600G-LR incorporates infringing technology from the '193 Patent and the '015 Patent—patents that had been specifically identified in OWS's licensing communications. Lumicore's decision to launch a new infringing product after receiving actual notice of OWS's patent rights demonstrates a deliberate and knowing disregard for those rights.
(e) Refusal to License or Disclose Opinions (July 10, 2023). Lumicore declined to take a license on July 10, 2023, referencing "competent legal opinions" that its products do not infringe, but Lumicore refused to produce or disclose the substance of those opinions. Lumicore's refusal to share the basis for its non-infringement position, while continuing to sell products that OWS had demonstrated to be infringing, supports an inference of willful blindness or bad faith.
(f) Pre-Notice Awareness of OWS's Patent Portfolio (2021–2022). On information and belief, Lumicore's engineering team accessed and reviewed OWS's published patent applications during the design phase of the LumiLink 400G-ZR+ product in 2021–2022. This pre-notice awareness of OWS's patented technology, combined with the subsequent actual notice provided through the FairPoint licensing communications, demonstrates that Lumicore's infringement was knowing and deliberate from the outset of its product development.
(g) Failure to Conduct Design-Around Analysis. On information and belief, Lumicore failed to conduct a formal design-around analysis before launching the LumiEdge 1600G-LR product, despite having been on notice of OWS's patent rights for more than nine months. Lumicore's failure to undertake even basic efforts to design around the Asserted Patents further demonstrates the willful and reckless nature of its infringement.
132. The totality of Lumicore's conduct—including its decision to launch a new infringing product after receiving detailed notice and claim charts, its refusal to take a license or disclose the basis for its non-infringement position, and its failure to conduct any design-around analysis—constitutes the type of "egregious" and "willful misconduct" that warrants enhanced damages under Halo, 579 U.S. at 103–04.
133. In addition to enhanced damages, Lumicore's willful infringement warrants an award of attorneys' fees and costs to OWS, as set forth in Section XI below.
IX. DAMAGES
134. As a direct and proximate result of Lumicore's infringement of the Asserted Patents, OWS has suffered and will continue to suffer substantial damages in an amount to be proven at trial, but which OWS estimates, based on currently available information, to be approximately $210 million.
135. OWS's damages include the following categories:
A. Lost Profits
136. OWS has lost sales of its OWS-400ZR and OWS-800XR transceiver modules directly as a result of Lumicore's sale of the infringing Accused Products. OWS and Lumicore are direct competitors in the silicon-photonics transceiver market for hyperscale data centers. The two companies compete head-to-head for the business of at least 12 of the top 20 hyperscale data-center operators in the United States, submitting competing bids and proposals for the same customer requirements.
137. OWS is entitled to recover its lost profits under 35 U.S.C. § 284 for sales that it would have made but for Lumicore's infringement. OWS's gross margin on its competing OWS-400ZR and OWS-800XR products is approximately 47.3%, as reflected in OWS's internal financial records and audited financial statements.