IN THE UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF TEXAS 

WACO DIVISION 

PASAFESHARE LLC , 

 Plaintiff, 

 v. 

MICROSOFT CORPORATION, 

 Defendant. 

 Case No. 6:20-cv-00397 

 Jury Trial Demanded 

 

COMPLAINT FOR PATENT INFRINGEMENT 

Plaintiff paSafeShare LLC (“paSafeShare”), by and through its undersigned 

counsel, files this Complaint against Microsoft Corporation (“Microsoft”) for patent 

infringement of United States Patent Nos. 9,455,961, 9,615,116, and 10,095,848 

(collectively, the “patents-in-suit”) (Exhibits 1-3) and alleges as follows: 

NATURE OF THE ACTION 

1. This is an action for patent infringement arising under the patent laws of 

the United States, 35 U.S.C. §§ 1 et seq.

THE PARTIES 

2. Plaintiff paSafeShare LLC is a limited liability company of New Jersey, 

having its principal place of business at 1 Shawnee Court, Colts Neck, New Jersey 

07722. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 1 of 41
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3. On information and belief, Defendant Microsoft Corporation is a 

corporation organized and existing under the laws of the State of Washington with its 

principal place of business located at One Microsoft Way, Redmond, WA 98052. 

Microsoft may be served with process through its registered agent for service in Texas: 

Corporation Service Company, 211 East 7th Street, Suite 620, Austin, Texas 78701. 

4. On information and belief, since at least November 1993, Microsoft has 

been registered to do business in the State of Texas under Texas SOS File Number 

0010404606. 

JURISDICTION AND VENUE 

5. 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. 

6. Microsoft is subject to this Court’s personal jurisdiction in accordance 

with due process and/or the Texas Long Arm Statute because, in part, Microsoft 

“[r]ecruits Texas residents, directly or through an intermediary located in this state, for 

employment inside or outside this state.” See Tex. Civ. Prac. & Rem. Code § 17.042. 

7. Microsoft has already submitted to the jurisdiction of this Court in patent 

litigations bearing docket numbers: 6:19-cv-00399-ADA and 1:19-cv-00874-ADA. 

8. This Court has personal jurisdiction over Microsoft because Microsoft 

(directly and/or through its subsidiaries, affiliates, or intermediaries) has committed 

and continues to commit acts of direct and indirect infringement in this judicial district 

in violation of at least 35 U.S.C. §§ 271(a) and (b). In particular, on information and 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 2 of 41
3 

belief, Microsoft makes, uses, offers for sale, and sells licenses for, or provides access to, 

products and/or services that infringe the patents-in-suit, and induces others to use the 

infringing products and/or services. 

9. This Court also has personal jurisdiction over Microsoft because Microsoft 

has sufficient minimum contacts with this forum as a result of business conducted 

within the State of Texas and this judicial district. In particular, this Court has personal 

jurisdiction over Microsoft because, inter alia, Microsoft, on information and belief: (1) 

has substantial, continuous, and systematic contacts with this State and this judicial 

district; (2) owns, manages, and operates facilities in this State and this judicial district; 

(3) enjoys substantial income from its operations and sales in this State and this judicial 

district; (4) employs Texas residents in this State and this judicial district, and (5) solicits 

business and markets products, systems and/or services in this State and this judicial 

district including, without limitation, related to the accused instrumentalities. 

10. Microsoft has purposefully availed itself of the privileges of conducting 

business within this judicial district; has established sufficient minimum contacts with 

this judicial district such that it should reasonably and fairly anticipate being hauled 

into court in this judicial district; has purposefully directed activities at residents of this 

judicial district; and at least a portion of the patent infringement claims alleged in this 

Complaint arise out of or are related to one or more of the foregoing activities. 

11. Venue is proper in this judicial district pursuant to 28 U.S.C. § § 1391(b)-

(d) and/or 1400(b). Microsoft is registered to do business in the State of Texas, 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 3 of 41
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maintains a regular and established place of business within this judicial district, and 

has committed acts of infringement in this judicial district. 

12. On information and belief, Microsoft maintains a significant physical 

presence in this judicial district, including its corporate sales office locations, retail store 

locations, and datacenter locations (hereinafter collectively referred to as “Microsoft’s 

Regular and Established Business Locations”). 

13. On information and belief, Microsoft operates multiple corporate sales 

offices in this judicial district including, without limitation, offices located at 10900 

Stonelake Boulevard, Suite 225, Austin, TX, USA 78759,1 and Concord Park II, 401 East 

Sonterra Boulevard, Suite 300, San Antonio, TX, USA 78258.2 

14. On information and belief, Microsoft markets, offers to sell, and/or sells 

products through its corporate sales offices located in this judicial district including, but 

not limited to, the accused instrumentalities. 

15. On information and belief, Microsoft operates multiple retail stores in this 

judicial district including, without limitation, stores located at 3309 Esperanza Crossing, 

Suite 104, Austin, TX, USA 78758,3 and 15900 La Cantera Parkway, Suite 6560, San 

Antonio, TX, USA 78256.4

16. On information and belief, Microsoft maintains a list of certified learning 

partners in this judicial district that offer training solutions and certification in 

1 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.

2 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.

3 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.

4 See https://www.microsoft.com/en-us/about/officelocator?Location=78258.

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 4 of 41
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Microsoft technology.5 For example, on information and belief, at the ONLC Training 

Center, 700 Lavaca Street, Suite 1400, Austin, Texas 78701, Microsoft Certified Trainers 

offer training and courses in Microsoft Azure Security Technologies.6

17. On information and belief, Microsoft has spent at least tens of millions of 

dollars on networking and server infrastructure to support Microsoft Azure located in 

the State of Texas and in this judicial district. 

18. On information and belief, Microsoft owns and operates multiple 

datacenters in this judicial district including, without limitation, data centers located at 

5150 Rogers Road, San Antonio, TX 78251; 5200 Rogers Rd, San Antonio, TX 78251; 3823 

Weisman Blvd, San Antonio, TX 78251; and 15000 Lambda Drive, San Antonio, TX 

782245 (collectively, “Microsoft’s Datacenter Locations”). 

19. On information and belief, Microsoft’s Azure global infrastructure 

includes 58 regions worldwide. On information and belief, one of those regions is 

known as the “South Central US.” 

5 See https://www.microsoft.com/en-us/learning/partners.aspx. 

6 See https://www.onlc.com/training/azure/austin-downtown-tx.htm. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 5 of 41
6 

https://azure.microsoft.com/en-us/global-infrastructure/regions/ 

20. Microsoft provides a list of Azure products and services available in the 

“South Central US” region, including but not limited to Azure Information Protection. 

See https://azure.microsoft.com/en-us/global-infrastructure/services/?regions=nonregional,us-south-central&products=all. 

21. On information and belief, a substantial portion of the “South Central US” 

region’s Azure network and server infrastructure is housed and operated in Microsoft’s 

Datacenter Locations. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 6 of 41
7 

22. On information and belief, Microsoft has 36 H-1B labor condition 

applications for people employed in Austin, Texas.7 On information and belief, 

Microsoft has 17 H-1B labor condition applications for people employed in San 

Antonio, Texas.8 Employees holding an H-1B visa are employed in a specialty 

occupation that requires “theoretical and practical application of a body of highly 

specialized knowledge . . . and attainment of a bachelor’s or higher degree in the 

specific specialty.” See generally 8 U.S.C. § 1184. As such, Microsoft employees in Austin, 

Texas and San Antonio, Texas are highly specialized and important to the operation of 

Microsoft. 

23. Microsoft lists job openings on its website for positions in this judicial 

district. 

7 See 

https://h1bsalary.online/index.php?searchtext=MICROSOFT+CORPORATION&year

=&minsalary=&state=&worksite_city=AUSTIN%2CTX&job_title=. 

8 See 

https://h1bsalary.online/index.php?searchtext=MICROSOFT+CORPORATION&year

=&minsalary=&state=&worksite_city=San+Antonio&job_title=. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 7 of 41
8 

https://careers.microsoft.com/us/en/c/data-center-jobs (visited on 4/9/2020). 

BACKGROUND 

24. The patents-in-suit are the result of paSafeShare’s years of research, design 

and development of innovative and proprietary content distribution technologies. 

25. Dr. Madhav S. Phadke and Kedar M. Phadke, co-inventors of the patentsin-suit, have over 50 years of combined experience in software development and 

technical consulting. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 8 of 41
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26. Dr. Madhav S. Phadke is a recognized leader in engineering design 

optimization and test methods. In the late 1980s, Dr. Phadke authored the first 

engineering textbook on robust design methods in the United States, Quality Engineering 

Using Robust Design (Prentice Hall, 1989). Dr. Phadke is also an ASQ Fellow and a 

recipient of the 2011 IEEE Region 1 Innovation Award. 

27. In 1990, Dr. Phadke founded Phadke Associates, Inc. (“Phadke 

Associates”), a global consultancy and software services company. Phadke Associates 

develops and markets software tools for systems engineering process improvement and 

design and test optimization. Prior to founding Phadke Associates, Dr. Phadke was a 

manager in AT&T Bell Labs, a visiting scientist at the IBM Watson Research Center, and 

a Research Associate at the Army Math Research Center. 

28. Dr. Phadke’s son, Kedar M. Phadke, joined the family business in 2004 as 

Vice President of Phadke Associates. Mr. Phadke holds a Bachelor of Science in 

Economics from the Wharton School, University of Pennsylvania. 

29. While working at Phadke Associates, the father-son duo noticed a 

significant oversight in existing content distribution security. In particular, they realized 

that while sensitive data could be protected in transmit by various security techniques 

(e.g., password-protected documents, access restricted web portals), there was no way 

to protect unwanted distribution by the recipient of the data. 

30. In 2010, Dr. Madhav and Kedar Phadke founded paSafeShare LLC to 

address the deficiencies in existing content distribution security. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 9 of 41
10 

31. In or around mid-2010, Dr. Madhav and Kedar Phadke began developing 

technology related to secure content distribution. 

32. The patents-in-suit relate, in part, to the persistent protection of content 

distributed within and across firewalls. 

United States Patent No. 9,455,961 

33. On September 27, 2016, the United States Patent and Trademark Office 

(“USPTO”) duly and legally issued United States Patent No. 9,455,961 (“the ’961 

patent”) entitled “System, Method and Apparatus for Securely Distributing Content” to 

inventors Madhav S. Phadke and Kedar M. Phadke. A true and correct copy of the ’961 

patent is attached as Exhibit 1. 

34. The ’961 patent is presumed valid under 35 U.S.C. § 282. 

35. paSafeShare owns all rights, title, and interest in the ’961 patent. 

United States Patent No. 9,615,116 

36. On April 4, 2017, the USPTO duly and legally issued United States Patent 

No. 9,615,116 (“the ’116 patent) entitled “System, Method and Apparatus for Securely 

Distributing Content” to inventors Madhav S. Phadke and Kedar M. Phadke. A true 

and correct copy of the ’116 patent is attached as Exhibit 2. 

37. The ’116 patent is presumed valid under 35 U.S.C. § 282. 

38. paSafeShare owns all rights, title and interest in the ’116 patent. 

U.S. Patent No. 10,095,848 

39. On October 9, 2018, the USPTO duly and legally issued United States 

Patent No. 10,095,848 (“the ’848 patent) entitled “System, Method and Apparatus for 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 10 of 41
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Securely Distributing Content” to inventors Madhav S. Phadke and Kedar M. Phadke. 

A true and correct copy of the ’848 patent is attached as Exhibit 3. 

40. The ’848 patent is presumed valid under 35 U.S.C. § 282. 

41. paSafeShare owns all rights, title and interest in the ‘848 patent. 

CLAIMS FOR RELIEF 

Count I – Infringement of United States Patent No. 9,455,961 

42. paSafeShare repeats, realleges, and incorporates by reference, as if fully 

set forth here, the preceding paragraphs of this Complaint. 

43. Microsoft makes, uses, sells, offers for sale, imports, and/or provides 

access to products and/or services for securely distributing content. 

44. On information and belief, Microsoft makes, uses, sells, offers to sell, 

imports and/or provides access to Azure Information Protection, Microsoft Azure 

Rights Management (“Microsoft Azure RMS”), Microsoft Azure Active Directory, 

Azure Key Vault, Microsoft Office 365, and Microsoft Azure RMS-enlightened client 

programs and services (collectively, the “Microsoft Azure RMS Platform”)9. 

9 RMS clients include, but are not limited to, Windows 10(x86, x64), Windows 8.1 (x86, 

x64), Windows 8 (x86, x64), Windows Server 2019, Windows Server 2016, Windows 

Server 2012 R2 and Windows Server 2012. See https://docs.microsoft.com/enus/azure/information-protection/requirements#BKMK_SupportedDevices. Computer 

applications that natively support Azure RMS include, but are not limited to, Office 365 

ProPlus, Office 365 Enterprise E5, Office 365 Enterprise E4, Office 365 Enterprise E3, 

Office 365 Government G4, Office 365 Government G3, Office 365 Education A5, Office 

365 Education A4, Office 365 Education A3, Office 365 Education A1, Office 365 Office 

Professional 2019, Office Professional 2016, Office Professional 2013, and Office 

Professional 2010. See https://docs.microsoft.com/en-us/azure/informationprotection/requirements-applications#footnote-1. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 11 of 41
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45. On information and belief, the Microsoft Azure RMS Platform practices a 

method for securely distributing content. Specifically, on information and belief, the 

Microsoft Azure RMS Platform uses Microsoft Azure RMS technology to protect 

documents and emails using labels and policies defined by an administrator.10 

10 See https://microsoft.github.io/AzureTipsAndTricks/blog/tip177.html. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 12 of 41
13 

46. On information and belief, Microsoft Azure RMS is a cloud-based service 

running on Microsoft Azure instances. 

47. On information and belief, the Microsoft Azure RMS Platform generates, 

at a server (e.g., a Microsoft-designed physical and/or virtual Hardened Security 

Appliance in the Azure cloud) in communication with a network (e.g., the Internet), a 

protected document package (PDP) (e.g., protected document) including encrypted 

content or a link to encrypted content (e.g., encrypted body and/or encrypted usage 

policy), and a Publisher Key (PK) (e.g., AES key) for decrypting said encrypted content 

What is Azure Rights Management?, MICROSOFT AZURE INFORMATION PROTECTION 

DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/what-is-azure-rms (last visited April 2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 13 of 41
14 

for presentation of said content by an authorized user via a Limited Capability Viewer 

(LCV) (e.g., Microsoft Office 365 application, such as Word). 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 14 of 41
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48. On information and belief, the Microsoft Azure RMS Platform generates 

software instructions that, when executed by a processor at a user device (e.g., personal 

computer) of a proposed authorized user, cause the user device to generate a Content 

Consumer License Request (CCLR) identifying said PK (e.g., AES key). 

49. On information and belief, the authorized user comprises a user having a 

Content Consumer License (CCL) (e.g., Azure RMS use license) compatible with the PK 

(e.g., AES key) to enable decryption of the encrypted content (e.g., encrypted body 

and/or encrypted usage policy) by the PK included within the PDP (e.g., protected 

document). 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 15 of 41
16 

50. On information and belief, the Microsoft Azure RMS Platform propagates, 

via the network (e.g., the Internet), the PDP (e.g., protected document) toward at least 

one user. 

51. On information and belief, in response to receiving from a proposed 

authorized user a CCLR identifying the PK (e.g., AES key), the Microsoft Azure RMS 

Platform propagates a CCL (e.g., Azure RMS use license) compatible with the PK 

toward the proposed authorized user. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 16 of 41
17 

52. On information and belief, the proposed authorized user is an 

unauthorized user where received PDP license requirements are not satisfied. 

53. On information and belief, the LCV (e.g., Microsoft Office 365 application) 

is configured to restrict editing, printing and copying of the content. 

 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 17 of 41
18 

Configuring Usage Rights For Azure Information Protection, MICROSOFT AZURE 

INFORMATION PROTECTION DOCUMENTATION, available at: 

https://docs.microsoft.com/en-us/azure/information-protection/configure-usagerights (last visited April 2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 18 of 41
19 

54. On information and belief, one or more Microsoft subsidiaries and/or 

affiliates use the Microsoft Azure RMS Platform in regular business operations. 

55. On information and belief, the Microsoft Azure RMS Platform is available 

to businesses and individuals throughout the United States. 

56. On information and belief, the Microsoft Azure RMS Platform is provided 

to businesses and individuals located in the Western District of Texas. 

57. On information and belief, Microsoft, without authorization or license, has 

been and continues to directly infringe (literally and/or under the doctrine of 

equivalents) at least claim 1 of the ’961 patent by making, using, selling, offering for 

sale, importing and/or providing access to products and/or services for securely 

distributing content, including but not limited to the Microsoft Azure RMS Platform. 

58. By making, using, testing, offering for sale, and/or selling products for 

securely distributing content, including but not limited to the Microsoft Azure RMS 

Platform, Microsoft has injured paSafeShare and is liable to the Plaintiff for directly 

infringing one or more claims of the ’961 patent, including at least claim 1 pursuant to 

35 U.S.C. § 271(a) 

59. On information and belief, Microsoft also indirectly infringes the ’961 

patent by actively inducing infringement under 35 USC § 271(b). 

60. On information and belief, Microsoft has been on notice of the ’961 patent 

at least as early as the date of service of this Complaint. 

61. On information and belief, Microsoft intends to induce patent 

infringement by third-party customers and users of the Microsoft Azure RMS Platform 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 19 of 41
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and has knowledge that the inducing acts cause infringement or is willfully blind to the 

possibility that its inducing acts cause infringement. 

62. On information and belief, Microsoft specifically intends and is aware that 

the normal and customary use of the accused products infringe the ’961 patent. 

Microsoft performs the acts that constitute induced infringement, and induce actual 

infringement, with knowledge of the ’961 patent and with the knowledge that the 

induced acts constitute infringement. For example, Microsoft provides the infringing 

Microsoft Azure RMS Platform, and further provides documentation and training 

materials that cause customers and end users of the Microsoft Azure RMS Platform to 

use the products in a manner that directly infringe one or more claims of the ’961 

patent. By providing instruction and training to customers and end users on how to use 

the Microsoft Azure RMS Platform in a manner that directly infringes one or more 

claims of the ’961 patent, including at least claim 1, Microsoft specifically intends to 

induce infringement of the ’961 patent. On information and belief, Microsoft engages in 

such inducement to promote the sales of the Microsoft Azure RMS Platform, e.g., 

through Microsoft user manuals, product support, marketing materials, and training 

materials to actively induce the users of the accused products to infringe the ’961 patent. 

Accordingly, Microsoft has induced and continues to induce users of the accused 

products to use the accused products in their ordinary and customary way to infringe 

the ’961 patent, knowing that such use constitutes infringement of the ’961 patent. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 20 of 41
21 

63. Microsoft’s direct and/or indirect infringement has damaged paSafeShare 

and paSafeShare is suffering and will continue to suffer irreparable harm and damages 

as a result of this infringement. 

Count II – Infringement of United States Patent No. 9,615,116 

64. paSafeShare repeats, realleges, and incorporates by reference, as if fully 

set forth here, the preceding paragraphs of this Complaint. 

65. Microsoft makes, uses, sells, offers for sale, imports, and/or provides 

access to products and/or services for securely distributing content. 

66. On information and belief, Microsoft makes, uses, sells, offers to sell, 

imports and/or provides access to Azure Information Protection, Microsoft Azure 

Rights Management (“Microsoft Azure RMS”), Microsoft Azure Active Directory, 

Azure Key Vault, Microsoft Office 365, and Microsoft Azure RMS-enlightened client 

programs and services (collectively, the “Microsoft Azure RMS Platform”)11. 

67. On information and belief, the Microsoft Azure RMS Platform practices a 

method for securely distributing content. Specifically, on information and belief, the 

11 RMS clients include, but are not limited to, Windows 10(x86, x64), Windows 8.1 (x86, 

x64), Windows 8 (x86, x64), Windows Server 2019, Windows Server 2016, Windows 

Server 2012 R2 and Windows Server 2012. See https://docs.microsoft.com/enus/azure/information-protection/requirements#BKMK_SupportedDevices. Computer 

applications that natively support Azure RMS include, but are not limited to, Office 365 

ProPlus, Office 365 Enterprise E5, Office 365 Enterprise E4, Office 365 Enterprise E3, 

Office 365 Government G4, Office 365 Government G3, Office 365 Education A5, Office 

365 Education A4, Office 365 Education A3, Office 365 Education A1, Office 365 Office 

Professional 2019, Office Professional 2016, Office Professional 2013, and Office 

Professional 2010. See https://docs.microsoft.com/en-us/azure/informationprotection/requirements-applications#footnote-1. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 21 of 41
22 

Microsoft Azure RMS Platform uses Microsoft Azure RMS technology to protect 

documents and emails using labels and policies defined by an administrator.12 

68. On information and belief, Microsoft Azure RMS is a cloud-based service 

running on Microsoft Azure instances. 

12 See https://microsoft.github.io/AzureTipsAndTricks/blog/tip177.html. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 22 of 41
23 

69. On information and belief, the Microsoft Azure RMS Platform generates, 

at a server (e.g., a Microsoft-designed physical and/or virtual Hardened Security 

Appliance in the Azure cloud), a protected document package (PDP) (e.g., protected 

document), the PDP including encrypted content (e.g., encrypted body and/or 

What is Azure Rights Management?, MICROSOFT AZURE INFORMATION PROTECTION 

DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/what-is-azure-rms (last visited April 2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 23 of 41
24 

encrypted usage policy), and a Publisher Key (PK) (e.g., AES key) associated with the 

encrypted content. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 24 of 41
25 

70. On information and belief, the PK (e.g., AES key) enables decryption of 

the encrypted content for presentation via a Limited Capability Viewer (LCV) (e.g., a 

Microsoft Office 365 application, such as Word) of an authorized user device. 

71. On information and belief, the authorized user device comprises a user 

device (e.g., personal computer) having a Content Consumer License (CCL) (e.g., Azure 

RMS use license) compatible with the PK (e.g., AES key) to enable presentation via the 

LCV (e.g., Microsoft Office 365 application) of locally stored encrypted content from the 

PDP (e.g., protected document). 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 25 of 41
26 

72. On information and belief, the PDP (e.g., protected document) includes 

software instructions that, when executed by a processor at a proposed authorized user 

device (e.g., personal computer), cause the proposed authorized user device to generate 

a Content Consumer License Request (CCLR) identifying the PK (e.g., AES key). 

Configuring Usage Rights for Azure Information Protection, MICROSOFT AZURE 

INFORMATION PROTECTION DOCUMENTATION, available at: 

https://docs.microsoft.com/en-us/azure/information-protection/configure-usagerights (last visited April 2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 26 of 41
27 

73. On information and belief, the Microsoft Azure RMS Platform propagates 

the PDP (e.g., protected document) toward at least one authorized or proposed 

authorized user device (e.g., personal computer). 

74. On information and belief, the Microsoft Azure RMS Platform receives 

from a proposed authorized user device (e.g., personal computer) having the PDP (e.g., 

protected document) a CCLR identifying the PK (e.g., AES key). 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 27 of 41
28 

75. On information and belief, the Microsoft Azure RMS Platform propagates 

a CCL (e.g., Azure RMS use license) compatible with the PK (e.g., AES key) toward the 

proposed authorized user device (e.g., personal computer) if the CCLR is valid. 

76. On information and belief, one or more Microsoft subsidiaries and/or 

affiliates use the Microsoft Azure RMS Platform in regular business operations. 

77. On information and belief, the Microsoft Azure RMS Platform is available 

to businesses and individuals throughout the United States. 

78. On information and belief, the Microsoft Azure RMS Platform is provided 

to businesses and individuals located in the Western District of Texas. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 28 of 41
29 

79. On information and belief, Microsoft, without authorization or license, has 

been and continues to directly infringe (literally and/or under the doctrine of 

equivalents) at least claim 1 of the ’116 patent by making, using, selling, offering for 

sale, importing and/or providing access to products and/or services for securely 

distributing content, including but not limited to the Microsoft Azure RMS Platform. 

80. By making, using, testing, offering for sale, and/or selling products for 

securely distributing content, including but not limited to the Microsoft Azure RMS 

Platform, Microsoft has injured paSafeShare and is liable to the Plaintiff for directly 

infringing one or more claims of the ’116 patent, including at least claim 1 pursuant to 

35 U.S.C. § 271(a) 

81. On information and belief, Microsoft also indirectly infringes the ’116 

patent by actively inducing infringement under 35 USC § 271(b). 

82. On information and belief, Microsoft has been on notice of the ’116 patent 

at least as early as the date of service of this Complaint. 

83. On information and belief, Microsoft intended to induce patent 

infringement by third-party customers and users of the Microsoft Azure RMS Platform 

and had knowledge that the inducing acts would cause infringement or was willfully 

blind to the possibility that its inducing acts would cause infringement. 

84. On information and belief, Microsoft specifically intends and is aware that 

the normal and customary use of the accused products infringe the ’116 patent. 

Microsoft performs the acts that constitute induced infringement, and induces actual 

infringement, with knowledge of the ’116 patent and with the knowledge that the 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 29 of 41
30 

induced acts constitute infringement. For example, Microsoft provides the infringing 

Microsoft Azure RMS Platform, and further provides documentation and training 

materials that cause customers and end users of the Microsoft Azure RMS Platform to 

use the products in a manner that directly infringe one or more claims of the ’116 

patent. By providing instruction and training to customers and end users on how to use 

the Microsoft Azure RMS Platform in a manner that directly infringes one or more 

claims of the ’116 patent, including at least claim 1, Microsoft specifically intends to 

induce infringement of the ’116 patent. On information and belief, Microsoft engages in 

such inducement to promote the sales of the Microsoft Azure RMS Platform, e.g., 

through Microsoft user manuals, product support, marketing materials, and training 

materials to actively induce the users of the accused products to infringe the ’116 patent. 

Accordingly, Microsoft has induced and continues to induce users of the accused 

products to use the accused products in their ordinary and customary way to infringe 

the ’116 patent, knowing that such use constitutes infringement of the ’116 patent. 

85. Microsoft’s direct and/or indirect infringement has damaged 

paSafeShare, and Microsoft is suffering and will continue to suffer irreparable harm and 

damages as a result of this infringement. 

Count III – Infringement of United States Patent No. 10,095,848 

86. paSafeShare repeats, realleges, and incorporates by reference, as if fully 

set forth here, the preceding paragraphs of this Complaint. 

87. Microsoft makes, uses, sells, offers for sale, imports, and/or provides 

access to products and/or services for securely distributing content. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 30 of 41
31 

88. On information and belief, Microsoft makes, uses, sells, offers to sell, 

imports and/or provides access to Microsoft Azure Rights Management (“Microsoft 

Azure RMS”), Microsoft Azure Active Directory, Azure Key Vault, Microsoft Office 365, 

and Microsoft Azure RMS-enlightened client programs and services (collectively, the 

“Microsoft Azure RMS Platform”).13 

89. On information and belief, the Microsoft Azure RMS Platform practices a 

method for securely distributing content. Specifically, on information and belief, the 

Microsoft Azure RMS Platform uses Microsoft Azure RMS technology to protect 

documents and emails using labels and policies defined by an administrator.14 

13 RMS clients include, but are not limited to, Windows 10(x86, x64), Windows 8.1 (x86, 

x64), Windows 8 (x86, x64), Windows Server 2019, Windows Server 2016, Windows 

Server 2012 R2 and Windows Server 2012. See https://docs.microsoft.com/enus/azure/information-protection/requirements#BKMK_SupportedDevices. Computer 

applications that natively support Azure RMS include, but are not limited to, Office 365 

ProPlus, Office 365 Enterprise E5, Office 365 Enterprise E4, Office 365 Enterprise E3, 

Office 365 Government G4, Office 365 Government G3, Office 365 Education A5, Office 

365 Education A4, Office 365 Education A3, Office 365 Education A1, Office 365 Office 

Professional 2019, Office Professional 2016, Office Professional 2013, and Office 

Professional 2010. See https://docs.microsoft.com/en-us/azure/informationprotection/requirements-applications#footnote-1. 

14 See https://microsoft.github.io/AzureTipsAndTricks/blog/tip177.html. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 31 of 41
32 

90. On information and belief, Microsoft Azure RMS is a cloud-based service 

running on Microsoft Azure instances. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 32 of 41
33 

91. On information and belief, the Microsoft Azure RMS Platform generates, 

at a server (e.g., a Microsoft-designed physical and/or virtual Hardened Security 

Appliance in the Azure cloud) in communication with a network (e.g., the Internet), a 

protected document package (PDP) (e.g., protected document) including encrypted 

content or a link to encrypted content (e.g., encrypted body and/or encrypted usage 

policy), and a Publisher Key (PK) (e.g., AES key) for decrypting the encrypted content 

What is Azure Rights Management?, MICROSOFT AZURE INFORMATION PROTECTION 

DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/what-is-azure-rms (last visited April 2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 33 of 41
34 

for presentation of said content by an authorized user via a Limited Capability Viewer 

(LCV) (e.g., a Microsoft Office 365 application, such as Microsoft Word). 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 34 of 41
35 

92. On information and belief, the Microsoft Azure RMS Platform generates 

software instructions that, when executed by a processor at a user device (e.g., personal 

computer) of a proposed authorized user, cause the user device to generate a Content 

Consumer License Request (CCLR) identifying the PK (e.g., AES key). 

93. On information and belief, the authorized user comprises a user having a 

Content Consumer License (CCL) (e.g., Azure RMS use license) compatible with the PK 

(e.g., AES key) to enable decryption of the encrypted content (e.g., encrypted body 

and/or encrypted usage policy) by the PK included within the PDP (e.g., protected 

document) and use of decrypted content in accordance with advanced permissions 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 35 of 41
36 

(e.g., Azure usage rights) indicated via the CCL. See https://docs.microsoft.com/enus/azure/information-protection/configure-usage-rights. 

94. On information and belief, the Microsoft Azure RMS Platform propagates, 

via the network (e.g., the Internet), the PDP (e.g., protected document) toward at least 

one user. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 36 of 41
37 

95. On information and belief, in response to receiving from a proposed 

authorized user a CCLR identifying said PK (e.g., AES key), the Microsoft Azure RMS 

Platform propagates a CCL (e.g., Azure RMS use license) compatible with the PK 

toward the proposed authorized user. 

96. On information and belief, one or more Microsoft subsidiaries and/or 

affiliates use the Microsoft Azure RMS Platform in regular business operations. 

97. On information and belief, the Microsoft Azure RMS Platform is available 

to businesses and individuals throughout the United States. 

98. On information and belief, the Microsoft Azure RMS Platform is provided 

to businesses and individuals located in the Western District of Texas. 

How does Azure RMS work? Under the hood, MICROSOFT AZURE INFORMATION 

PROTECTION DOCUMENTATION, available at: https://docs.microsoft.com/enus/azure/information-protection/how-does-it-work#walkthrough-of-how-azurerms-works-first-use-content-protection-content-consumption (last visited April 

2020). 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 37 of 41
38 

99. On information and belief, Microsoft, without authorization or license, has 

been and continues to directly infringe (literally and/or under the doctrine of 

equivalents) at least claim 1 of the ‘848 patent by making, using, selling, offering for 

sale, importing and/or providing access to products and/or services for securely 

distributing content, including but not limited to the Microsoft Azure RMS Platform. 

100. By making, using, testing, offering for sale, and/or selling products for 

securely distributing content, including but not limited to the Microsoft Azure RMS 

Platform, Microsoft has injured paSafeShare and is liable to the Plaintiff for directly 

infringing one or more claims of the ‘848 Patent, including at least claim 1 pursuant to 

35 U.S.C. § 271(a) 

101. On information and belief, Microsoft also indirectly infringes the ’848 

patent by actively inducing infringement under 35 USC § 271(b). 

102. On information and belief, Microsoft has been on notice of the ’848 patent 

at least as early as the date of service of this Complaint. 

103. On information and belief, Microsoft intends to induce patent infringement 

by third-party customers and users of the Microsoft Azure RMS Platform and has 

knowledge that its inducing acts cause infringement or is willfully blind to the possibility 

that its inducing acts cause infringement. 

104. On information and belief, Microsoft specifically intends and is aware that 

the normal and customary use of the accused products infringe the ’848 patent. 

Microsoft performs the acts that constitute induce infringement, and induce actual 

infringement, with knowledge of the ’848 patent and with the knowledge that its 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 38 of 41
39 

induced acts constitute infringement. For example, Microsoft provides the infringing 

Microsoft Azure RMS Platform, and further provides documentation and training 

materials that cause customers and end users of the Microsoft Azure RMS Platform to 

use the products in a manner that directly infringe one or more claims of the ’848 

patent. By providing instruction and training to customers and end users on how to use 

the Microsoft Azure RMS Platform in a manner that directly infringes one or more 

claims of the ’848 patent, including at least claim 1, Microsoft specifically intends to 

induce infringement of the ’848 patent. On information and belief, Microsoft engages in 

such inducement to promote the sales of the Microsoft Azure RMS Platform, e.g., 

through Microsoft user manuals, product support, marketing materials, and training 

materials to actively induce the users of the accused products to infringe the ’848 patent. 

Accordingly, Microsoft has induced and continues to induce users of the accused 

products to use the accused products in their ordinary and customary way to infringe 

the ’848 patent, knowing that such use constitutes infringement of the ’848 patent. 

105. Microsoft’s direct and/or indirect infringement has damaged paSafeShare 

and paSafeShare is suffering and will continue to suffer irreparable harm and damages 

as a result of this infringement. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 39 of 41
40 

JURY DEMANDED 

106. Pursuant to Federal Rule of Civil Procedure 38(b), paSafeShare requests a 

trial by jury on all issues so triable. 

PRAYER FOR RELIEF 

paSafeShare respectfully requests this Court to enter judgment in paSafeShare’s 

favor and against Microsoft as follows: 

a. finding that Microsoft has infringed one or more claims of the ’961 patent; 

b. finding that Microsoft has infringed one or more claims of the ’116 patent; 

c. finding that Microsoft has infringed one or more claims of the ’848 patent; 

d. awarding paSafeShare damages under 35 U.S.C. § 284, or otherwise permitted by 

law, including supplemental damages for any continued post-verdict 

infringement; 

e. awarding paSafeShare pre-judgment and post-judgment interest on the damages 

award and costs; 

f. awarding cost of this action (including all disbursements) and attorney fees 

pursuant to 35 U.S.C. § 285, or as otherwise permitted by the law; and 

g. awarding such other costs and further relief that the Court determines to be just 

and equitable. 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 40 of 41
41 

Dated: May 14, 2020 Respectfully submitted, 

OF COUNSEL: 

/s/Raymond W. Mort, III 

Ronald M. Daignault* 

Chandran B. Iyer* 

Stephanie Mandir * 

GOLDBERG SEGALLA 

rdaignault@goldbergsegalla.com 

cbiyer@goldbergsegalla.com 

smandir@goldbergsegalla.com 

711 Third Avenue, Suite 1900 

New York, New York 10017 

Telephone: (646) 292-8700 

Raymond W. Mort, III 

Texas State Bar No. 00791308 

raymort@austinlaw.com 

THE MORT LAW FIRM, PLLC 

100 Congress Avenue, Suite 2000 

Austin, Texas 78701 

Tel/Fax: 512-865-7950 

Attorneys for paSafeShare LLC 

 

* pro hac vice motion to be filed 

Case 6:20-cv-00397 Document 1 Filed 05/14/20 Page 41 of 41