Straight Path IP Group v. Sony Et. Al.

8/22/2019 Straight Path IP Group v. Sony Et. Al.

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IN THE UNITED STATES DISTRICT COURIFOR THE EASTERN DISTRICT OF VIRGINL,

NORFOLK DIVISION

STRAIGHT PATHIP GROUP, INC.,Plaintiff,

FILED &Vfc 12m

CLERK. US. DISTRICT COURNORFOLK. VA

SONY CORPORATION,SONY CORPORATION OFAMERICA,SONY ELECTRONICS, INC.,SONY MOBILE COMMUNICATIONS AB,SONY MOBILE COMMUNICATIONS (USA) INC.,SONY COMPUTER ENTERTAINMENT, INC.,AND SONY COMPUTER ENTERTAINMENTAMERICA LLC

Defendants.

Civil Action No. J3q^\IJURY TRIAL DEMANDED

COMPLAINT FOR PATENT INFRINGEMENT1. Plaintiff Straight Path IP Group, Inc. ("Straight Path" or "Plaintiff), for its

Complaint against Defendants Sony Corporation, Sony Corporation ofAmerica, SonyElectronics, Inc., SonyMobile Communications AB, Sony Mobile Communications (USA) Inc.,Sony Computer Entertainment, Inc., and Sony Computer EntertainmentAmerica LLC(collectively "Defendants"), hereby alleges as follows:

PARTIES

2. Straight Path is aDelaware corporation with its principal place ofbusiness at5300 Hickory Park Dr., Suite 218,Glen Allen, VA 23059.

3. Sony Corporation ("Sony") is a foreign company organized and existing under thelaws of Japan, with its principal place ofbusiness located at 1-7-1 Konan Minato-ku, Tokyo 108-

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0075, Japan. Sony is in the business of, interalia, developing, manufacturing, importing and/orselling point-to-point network communications devices and products containing same. Suchdevices include, but are not limited to, televisions, gaming consoles, handheld gaming devices,computers, tablets,mobile phones, e-readers, Blu-ray players, home audio and theater systems,internet players with Google TV, and VoIP phone systems.

4. SonyCorporation ofAmerica ("SCA") is a wholly-owned subsidiary ofSony andis a corporation organized and existingunderthe lawof the State ofNew York, with its principalplace of business located at 550 Madison Avenue, 27th Floor, New York, NY 10022-3211.SCA's registeredagents for service ofprocess are Corporation Service Company, 2730GatewayOaks Drive, Suite 100,Sacramento, CA95833. SCA is the umbrella company under which allSonycompanies operate in the UnitedStates. SCA is in the businessof developing,manufacturing, and sellingconsumerelectronicsand displaydevices and productscontainingsame. Such devices include, but are not limited to, audio, video, communications, andinformationtechnologyproducts for the consumer and professionalmarkets, such as motionpicture, television, computer entertainment, hometheateraudio and videocomponents; videogame consoles, and LCD, digital light processing ("DLP"), and plasma televisions.

5. Sony Electronics Inc. ("Sony Electronics"), headquartered in San Diego,California, is the largest component of SCA, theU.S. holding company for Sony's U.S.-basedelectronics andentertainment businesses. SonyElectronics is theU.S. sales andmarketing armofSony's global electronics business. Sony Electronics is a provider of audio/video electronicsand information technologyproducts for the consumer and professional markets. Operationsinclude research and development, design, engineering, sales,marketing, distribution andcustomer service. Sony Electronics produces and sells a wide range ofconsumer products,

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including, but not limited to, point-to-point network communications devices andproductscontaining same.

6. Sony Mobile Communications AB (formerly Sony Ericsson MobileCommunications AB) ("Sony Mobile") is amultinational mobile phone manufacturing companyheadquartered inTokyo, Japan, anda wholly owned subsidiary of Sony. Itwas founded onOctober 1,2001 andbecame wholly Sony-owned on February 16, 2012. Sony MobileCommunications ABis the world's lOth-largest mobile phonemanufacturer by marketshareinthefirstquarter of 2012. It is the world's third-largest smartphone manufacturer bymarket sharein the thirdquarter of 2012. SonyMobileCommunicationsAB is in the business of, inter alia,selling point-to-point network communications devices and products containing same, suchassmartphones, wireless systems, and wireless voice devices.

7. Sony Mobile Communications (USA) Inc. ("Sony Mobile USA") is a domesticcorporation organized underthe lawsofDelaware, with a principal placeof business located at7001 Development Drive, Research Triangle Park, NC27709. Sony Mobile USA's registeredagent forservice of process is Capitol Services Inc., 1675 S StateSt. SteB, Dover, DE, 19901.Sony Mobile USA manages theNorthAmerican operations of Sony Mobile.

8. Sony Computer Entertainment, Inc. ("SCE") is a foreign company organized andexisting under the laws of Japan, withitsprincipal place of business located at 1-7-1 KonanMinato-ku, Tokyo 108-0075, Japan. SCE is amajor video game company specializing inavariety ofareas in the video game industry and is awholly-owned subsidiary ofSony. SCEhandles theproduction andsalesof bothhardware andsoftwareof the PlayStation andPSOnegame console, PlayStation 2, PlayStation 3, and PlayStation 4 computer entertainment systems.SCE currently has three main headquarters around theworld: Minami-Aoyama, Minato, Tokyo,


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Japan (Sony Computer Entertainment Japan & Sony Computer Entertainment Asia), whichcontrol operations in Asia; Foster City, California, US (Sony Computer EntertainmentAmerica),whichcontrols operations in NorthAmerica; and London, UnitedKingdom (Sony ComputerEntertainmentEurope), which controls operations in Europe and Oceania. SCE also has smalleroffices and distributioncenters in Hollywood, Los Angeles,California, US; Toronto, Ontario,Canada; Melbourne, Australia; and Seocho-gu, Seoul, South Korea.

9. Sony Computer Entertainment America LLC ("SCEA") is a limited liabilitycompany with its principal place of business located at 919 East Hillsdale Boulevard, 2nd Floor,FosterCity, CA94404. SCEA develops and markets video games consoles in the United States.SCEA is in the businessof, inter alia, selling point-to-point network communications devicesand products containingsame, including but not limited to gaming devices such as thePlayStation andPSonegameconsole, PlayStation 2, PlayStation 3, andPlayStation 4 computerentertainment systems, online and network services, such as PlayStationNetwork andPlayStation Store.

NATURE OF THE ACT ION

10. This is a civil action for the infringement ofUnited States Patent No. 6,009,469(the '"469 Patent") (attached as Exhibit A) entitled "Graphic User Interface for InternetTelephonyApplication,"United States PatentNo. 6,108,704 (the "'704 Patent") (attachedasExhibitB) entitled "Point-to-Point Protocol," andUnited StatesPatentNo. 6,131,121 (the '"121Patent) (attached as ExhibitC) entitled "Point-to-Point ComputerNetwork CommunicationUtility Utilizing Dynamically Assigned Network Protocol Addresses" (collectively, the "Patents-in-Suit") under the patent lawsof theUnited States, 35U.S.C. 1,et seq.

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11. This action involves Defendants' manufacture , use, sale, offer for sale, and/orimportation into the United States of infringingproducts,methods, processes, services andsystems that are primarilyused or primarily adapted for use in point-to-point networkcommunicationsdevices and products containing same, including, for example butwithoutlimitation, smartphonehandsets, tablet computers,computers, smart TVs, Blu-ray players,gaming devices, set-top boxes, and VoIP phone systems, that infringe one or more of the claimso f the Patents-in-Sui t .

JURI SD ICT ION AND VENUE

12. This Court has original jurisdiction over the subject matter of this Complaintunder 28 U.S.C. 1331 and 1338(a) because this action arises under the patent laws of theUnited States, including 35 U.S.C. 1,et seq.

13. Defendantsare subject to personaljurisdiction in the CommonwealthofVirginiabecauseDefendants regularlytransact business in this judicial district by, amongother things,offering Defendants' products and servicesto customers, business affiliates andpartners locatedin this judicialdistrict. In addition, theDefendants havecommitted acts of directinfringement ofone or moreof the claims ofone or more of the Patents-in-Suit in this judicial district.

14. Venue in this district is proper under 28 U.S.C. 1400(b) and 1391(b) and (c),because the Defendants are subject to personal jurisdiction in this district and have committedacts of infringement in this district.

FACTUAL BACKGROUND

15. PlaintiffStraight Path is the lawful assignee of all right, title and interest in and tothe Patents-in-Suit.


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16. All maintenance fees for the Patents-in-Suit have been timely paid, and there areno fees currently due.

COUNT I(Defendants' Infringement of the '469 Patent)17. Paragraphs 1 through 16 are incorporated by reference asif fully restated herein.18. Defendants make, use, sell,offerto sell and/orimport into theUnited States for

subsequent sale oruse products, services, methods orprocesses that directly and/or indirectlyinfringe, literally and/or under the doctrine ofequivalents, or that employ systems, componentsand/or processes that make use of systems orprocesses that directly and/or indirectly infringe,literally and/or under the doctrine ofequivalents, claims of the '469 Patent, including at leastClaims 1,2,3,9,10, 17 and 18.

19. Such infringing devices include consumer electronics and display devices,including but not limited to, certain ofDefendants' point-to-point network communicationsdevices and products containing same, including, for example but without limitation, the SonyXPeria ZL (which encompasses allSony smartphones, including but not limited tomodelnumbers XZLC6506, XTST21SS, XTST21DS, XEC1504, XEDSC1604, XMST23, XJST26,XAST27, XUST25, XPLT22, XSLLT26, XASLT26, LT30AT, and LT28AT), aswell asothersofDefendants' smartphone handsets, tablet computers, computers, smart TVs, Blu-ray players,gaming devices, set-top boxes, andVoIP phone systems.

20. Defendants actively, knowingly, and intentionally induced, and continue toactively, knowingly, and intentionally induce, infringement of the '469 Patent by making, using,offering for sale, importing, and selling infringing consumer electronics and display devices, aswell as by contracting with others to use, market, sell, offer to sell, and import infringingconsumer electronics and display devices, allwith knowledge of the '469Patent and itsclaims;


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with knowledge that its customers and end users will use, market, sell, offer to sell, and importinfringing consumer electronics and display devices; and with the knowledge and the specificintent toencourage and facilitate those infringing sales and uses of infringing consumerelectronics and display devices through the creation and dissemination ofpromotional andmarketing materials, instructional materials, product manuals, and technical materials.

21. Defendants have also contributed to the infringement byothers, including the endusersof infringing consumer electronics anddisplaydevices, and continue to contribute toinfringement by others, by selling, offering to sell, and importing the infringing consumerelectronics and display devices into the United States, knowing that those products constitute amaterial part of the inventions of the '469 Patent, knowing those products to be especially madeor adapted to infringe the '469Patent, and knowing that those products are not staple articles orcommodities of commerce suitable forsubstantial non-infringing use.

22. Defendants havehad knowledge ofand noticeof the '469 Patentand itsinfringement since at least, and through, the filing and service ofthis Complaint and, despite thisknowledge, continue to commit tortious conduct by way ofpatent infringement.

23. Defendants have been and continue tobe infringing oneormore oftheclaims ofthe '469 Patent through the aforesaid acts.

24. Plaintiff is entitled to recover damages adequate to compensate for theinfringement.

COUNT II(Defendants' Infringement of the '704 Patent)25. Paragraphs 1 through 24 are incorporated by reference asif fully restated herein.26. Defendants make, use, sell, offer to selland/or import into theUnited States for

subsequent sale oruse products, services, methods orprocesses that directly and/or indirectly


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infringe, literally and/or under the doctrine ofequivalents, or that employ systems, componentsand/or processes that make use ofsystems or processes that directly and/or indirectly infringe,literally and/or under the doctrine ofequivalents, claims ofthe '704 Patent, including at leastClaims 1,11,12, 19,22,23, and 30.

27. Such infringing devices include consumer electronics and display devices,including but not limited to, certain ofDefendants' point-to-point network communicationsdevices and products containing same, including, for example but without limitation, the SonyPlayStation 3 (which encompasses all versions of the Sony PlayStation 3), aswell asothers ofDefendants' smartphone handsets, tablet computers, computers, smart TVs, Blu-ray players,gaming devices, set-top boxes, and VoIP phone systems.

28. Defendants actively, knowingly, and intentionally induced, and continue toactively, knowingly, and intentionally induce, infringement ofthe '704 Patent by making, using,offering for sale, importing, and selling infringing consumer electronics and display devices, aswell as by contracting with others to use, market, sell, offer to sell, and import infringingconsumer electronics and display devices, all with knowledge of the '704Patent and its claims;with knowledge that its customers and end users will use, market, sell, offer to sell, and importinfringing consumer electronics and display devices; and with the knowledge and the specificintent to encourage and facilitate those infringing sales and uses of infringing consumerelectronics and display devices through the creation and dissemination ofpromotional andmarketing materials, instructional materials, productmanuals, and technical materials.

29. Defendants have also contributed to the infringement by others, including the endusers of infringing consumer electronics and display devices, and continue to contribute toinfringement by others, by selling, offering to sell, and importing the infringing consumer


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electronicsand display devices into the UnitedStates, knowing that those productsconstituteamaterial part of the inventions of the '704 Patent, knowing those products to beespecially madeor adapted to infringe the '704 Patent, andknowing that those products are not staplearticles orcommodities of commerce suitable for substantial non-infringing use.

30. Defendants have had knowledge of and notice of the '704 Patent and itsinfringement sinceat least,and through, the filing andserviceof this Complaint and, despite thisknowledge, continue to commit tortious conduct by wayof patent infringement.

31. Defendants have been and continue to be infringing one or more of the claims ofthe '704 Patent through the aforesaid acts.

32. Plaintiffis entitled to recoverdamagesadequateto compensate for theinfringement.

COUNT II I(Defendants' Infringement of the '121 Patent)

33. Paragraphs1 through 32 are incorporatedby reference as if fully restatedherein.34. Defendantsmake, use, sell, offer to sell and/or import into the United States for

subsequent saleor useproducts, services, methods or processes that directly and/or indirectlyinfringe, literally and/orunderthe doctrine of equivalents, or thatemploysystems, componentsand/or processes that make useof systems or processes thatdirectly and/or indirectly infringe,literally and/orunderthe doctrine of equivalents, claimsof the ' 121 Patent, including at leastClaims 6 and 13 .

35. Such infringingdevices include consumer electronics and display devices,including butnot limitedto, certainofDefendants' point-to-point networkcommunicationsdevices andproducts containing same, including, for example butwithout limitation, the SonyXPeriaZL (whichencompasses all Sony smartphones, includingbut not limitedto model


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numbers XZLC6506, XTST21SS, XTST21DS, XEC1504, XEDSC1604, XMST23, XJST26,XAST27, XUST25, XPLT22, XSLLT26, XASLT26, LT30AT, and LT28AT), aswellas othersofDefendants' smartphone handsets, tablet computers, computers, smart TVs, Blu-ray players,gamingdevices, set-top boxes,and VoIPphone systems.

36. Defendants actively, knowingly, and intentionally induced, and continue toactively, knowingly, and intentionally induce, infringement of the '121 Patent by making, using,offering for sale, importing, and selling infringing consumer electronics and display devices, aswell asbycontracting with others to use, market, sell, offer to sell, and import infringingconsumerelectronics and displaydevices, all withknowledge of the ' 121 Patentand its claims;with knowledge that itscustomers and end users will use, market, sell, offer to sell, and importinfringing consumer electronics and display devices; and with theknowledge and the specificintent toencourage and facilitate those infringing sales anduses of infringing consumerelectronics anddisplay devices through the creation anddissemination of promotional andmarketing materials, instructional materials, product manuals, and technical materials.

37. Defendants have also contributed to the infringement byothers, including the endusersof infringing consumerelectronicsand displaydevices, and continue to contributetoinfringement byothers, by selling, offering to sell, and importing the infringing consumerelectronics anddisplay devices into theUnited States, knowing that those products constitute amaterial part of the inventions of the '121 Patent, knowing those products tobeespecially madeoradapted to infringe the '121 Patent, and knowing that those products are not staple articles orcommodities of commerce suitable for substantial non-infringing use.

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38. Defendants have had knowledge of and notice of the ' 121 Patent and itsinfringement sinceat least,and through, the filingand service of this Complaint and, despite thisknowledge, continue to commit tortious conduct byway ofpatent infringement.

39. Defendants have been and continues to be infringing one or more of the claims ofthe ' 121 Patent through the aforesaid acts.

40. Plaintiff is entitled to recover damages adequate to compensate for theinfringement.

PRAYER FOR REL IEF

WHEREFORE, Straight Path IPGroup, Inc., respectfully requests the following relief:a) A judgment that Defendants have infringed the '469 Patent;b) Ajudgment that Defendants have infringed the '704 Patent;c) A judgment that Defendants have infringed the ' 121 Patent; andd) A judgment that awards Straight Path all appropriate damages under 35 U.S.C.

284 for the Defendants' past infringement, and any continuingor futureinfringement of the Patents-in-Suit, up until the date such judgment is entered,including interest, costs, and disbursements as justified under 35 U.S.C. 284and, if necessary, to adequately compensate Straight Path for Defendants'infringement, an adjudication;

i. that this case is exceptionalwithin the meaning of35 U.S.C. 285;ii. thatStraight Pathbe awarded the attorneys' fees, costs,andexpenses it incurs

in prosecuting this action; andiii. that Straight Path be awarded such further relief at law or in equity as the

Court deems just and proper.

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DEMAND FOR JURY TR IAL

StraightPath herebydemands trial byjury on all claims and issues so triable.

DATED: August 1,2013

OF COUNSEL:

Respectfully submitted,

Gregory N. Stillman (VSB #14308)Brent L. VanNorman (VSB #45956)HUNTON & WILLIAMS LLP500 East Main Street, Suite 1000Norfolk, VA 23510Telephone: (757) 640-5300Facsimile: (757) [email protected]@hunton.com

Michael T . Renaud - LEAD ATTORNEYJames M. WodarskiMichael J. McNamaraMichael C. NewmanSandra J. BadinDominik R. RabiejRobert J. L. MooreMINTZ, LEVIN, COHN, FERRIS, GLOVSKY & POPEO P.C.One Financial CenterBoston, MA 02111(617) [email protected]@[email protected]@[email protected]@[email protected] Counselfor PlaintiffStraight Path IP Group, Inc.

Straight Path IP Group v. Sony Et. Al.

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