Xockets sues Amazon for infringing cloud computing patents in Western District of Texas-Overseas News-Shenzhen deep trust patent Agency Co., LTD

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Xockets sues Amazon for infringing cloud computing patents in Western District of Texas

Release Time：

2025-07-04

Context: According to Xockets, Dr. Parin Dalal invented a cloud processor and computing architecture in 2011 that is now known as a Data Processing Unit (DPU), to enable the transition of every data center to an AI data center. Dr. Dalal then founded Xockets in 2012, which designed and built the world’s first-ever advanced DPUs.

What’s new: Xockets has sued Amazon in the Western District of Texas for allegedly infringing seven of its DPU-related patents, claiming this is only to help slash its operating costs and expand its own gains. In two separate claims, Xockets has alleged:

“Amazon willfully trampled on the exclusive property rights of Xockets, a visionary startup that Amazon has known about for approximately a decade.”

Through this infringement, Amazon has achieved “staggering profits” and its AI revolution “has only expanded Amazon’s gains”. Xockets is seeking injunctions, claiming that the estimated financial benefits to Amazon are between $15,000 and $30,000 per server, representing hundreds of billions of dollars in aggregate benefit from the use of Xockets’ DPU innovations.

Direct impact: The fact that Xockets has filed two simultaneous patent infringement complaints against the same defendant in the same district court is unusual – and may be because the company is seeking to maximize its chances of having its case assigned to Judge Alan D. Albright of the Austin division of the United States District Court for the Western District of Texas. The judge previously heard cases in the Waco division but was transferred to Austin in January after his popularity in the courtroom for patent litigation drew criticism.

Wider ramifications: The company’s request for an injunction also comes at a good time. Last week, the U.S. Department of Justice’s Antitrust Division and the U.S. Patent & Trademark Office filed a Statement of Interest in a patent infringement dispute in which Radian Memory Systems is seeking an injunction against Samsung Electronics (June 24, 2025 IP Watchdog article). The government bodies urged U.S. federal courts to restore injunctions as a matter of course in patent cases – and emphasized that non-practicing entities are not categorically barred from proving irreparable harm. It also comes after some members of the United States Congress have proposed measures to lower the bar for issuing nationwide injunctions (April 9, 2025 New York Times article).

In a statement yesterday, Xockets board member Robert Cote said:

“Xockets is a visionary startup that saw the future and built it, only to have it taken by one of the world’s largest corporations without consent, compensation, or conscience.”

These lawsuits, he added, aren’t just about patents. They are about laws of a “higher order”:

“Innovation is sacred. Creation is divine.”

The patents-in-suit include:

U.S. Patent No. 11,080,209 (“Server systems and methods for decrypting data packets with computation modules insertable into servers that operate independent of server processors”)

U.S. Patent No. 10,649,924 (“Network overlay systems and methods using offload processors”)

U.S. Patent No. 11,082,350 (“Network server systems, architectures, components and related methods”)

U.S. Patent No. 10,223,297 (“Offloading of computation for servers using switching plane formed by modules inserted within such servers”)

U.S. Patent No. 10,212,092 (“Architectures and methods for processing data in parallel using offload processing modules insertable into servers”)

U.S. Patent No. 9,378,161 (“Full bandwidth packet handling with server systems including offload processors”)

U.S. Patent No. 9,436,640 (“Full bandwidth packet handling with server systems including offload processors”)