Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 1 of 133 PageID #: 1
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
`
`REALTIME ADAPTIVE STREAMING LLC,
`
`
`
`
`Plaintiff,
`
` v.
`
`SONY ELECTRONICS INC., and
`SONY CORPORATION
`
`
`Defendants.
`
`
`Case No. ___________________
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`
`
`JURY TRIAL DEMANDED
`
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`This is an action for Patent infringement arising under the Patent Laws of the
`
`United States of America, 35 U.S.C. § 1 et seq. in which Plaintiff Realtime Adaptive
`
`Streaming LLC (“Plaintiff” or “Realtime”) makes the following allegations against
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`Defendants Sony Electronics, Inc. and Sony Corporation (collectively “Defendants” or
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`“Sony”).
`
`PARTIES
`
`1.
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`Realtime is a Texas limited liability company. Realtime has a place of
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`business at 1828 E.S.E. Loop 323, Tyler, Texas 75701. Realtime has researched and
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`developed specific solutions for data compression, including, for example, those that
`
`increase the speeds at which data can be stored and accessed. As recognition of its
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`innovations rooted in this technological field, Realtime holds multiple United States
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`Patents and pending Patent applications.
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`2.
`
`Defendant Sony Electronics, Inc. is a Delaware corporation, with its
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`principal place of business at 16535 Via Esprillo, San Diego, California 92127. Sony
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`Electronics Inc. may be served with process by serving its registered agent, Corporation
`
`
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`1
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`Service Company at 251 Little Falls Drive, Wilmington, Delaware 19808.
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`3.
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`Defendant Sony Corporation is a Japanese corporation, with its corporate
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`headquarters located at 1-7-1 Konan, Minato-ku, Tokyo, 108-0075, Japan. Sony
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`Corporation may be served with process under the Delaware long arm statute.
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`4.
`
`Sony Electronics Inc. resides in this District because Sony Electronics Inc.
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`is incorporated in Delaware. Sony Corporation is a foreign corporation and therefore
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`can be sued in this District. Defendants offer their products and/or services, including
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`those accused herein of infringement, to customers and potential customers located in
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`Delaware and in this District.
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`JURISDICTION AND VENUE
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`5.
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`This action arises under the Patent laws of the United States, Title 35 of
`
`the United States Code. This Court has original subject matter jurisdiction pursuant to 28
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`U.S.C. §§ 1331 and 1338(a).
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`6.
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`This Court has personal jurisdiction over Defendants in this action because
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`Defendants have committed acts within the District of Delaware giving rise to this action
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`and has established minimum contacts with this forum such that the exercise of
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`jurisdiction over Defendants would not offend traditional notions of fair play and
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`substantial justice. Defendants have also committed and continue to commit acts of
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`infringement in this District by, among other things, offering to sell and selling products
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`and/or services that infringe the asserted Patents.
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`7.
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`Venue is proper in this district, e.g., under 28 U.S.C. § 1400(b).
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`Defendants reside in this District because they are incorporated in Delaware.
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`Furthermore, upon information and belief, Defendants have transacted business in the
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`District of Delaware and have committed acts of direct and indirect infringement in the
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`District of Delaware.
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` THE PATENTS-IN-SUIT
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`8.
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`This action arises under 35 U.S.C. § 271 for Sony’s infringement of
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`Realtime’s United States Patent Nos. 7,386,046 (the “’046 Patent”), 8,634,462 (the
`
`“’462 Patent”), 8,929,442 (the “’442 Patent”), 8,934,535 (the “’535 Patent”), 9,578,298
`
`(the “’298 Patent”), 9,762,907 (the “’907 Patent”), and 9,769,477 (the “’477 Patent”)
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`(collectively, the “Patents-In-Suit”).
`
`9.
`
`The ’046 Patent, titled “Bandwidth Sensitive Data Compression and
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`Decompression,” was duly and properly issued by the United States Patent and
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`Trademark Office (“USPTO”) on June 10, 2008. A copy of the ’046 Patent is attached
`
`hereto as Exhibit A. Realtime is the owner and assignee of the ’046 Patent and holds the
`
`right to sue for and recover all damages for infringement thereof, including past
`
`infringement.
`
`10.
`
`The ’462 Patent, titled “Quantization for Hybrid Video Coding,” was duly
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`and properly issued by the USPTO on January 21, 2014. A copy of the ’462 Patent is
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`attached hereto as Exhibit B. Realtime is the owner and assignee of the ’462 Patent and
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`holds the right to sue for and recover all damages for infringement thereof, including
`
`past infringement.
`
`11.
`
`The ’442 Patent, titled “System and method for video and audio data
`
`distribution,” was duly and legally issued by the USPTO on January 6, 2015. A true and
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`correct copy of the ‘442 Patent is included as Exhibit C. Realtime is the owner and
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`assignee of the ’442 Patent and holds the right to sue for and recover all damages for
`
`
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`3
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`infringement thereof, including past infringement.
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`12.
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`The ’535 Patent, titled “Systems and methods for video and audio data
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`storage and distribution,” was duly and properly issued by the USPTO on January 13,
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`2015. A copy of the ’535 Patent is attached hereto as Exhibit D. Realtime is the owner
`
`and assignee of the ’535 Patent and holds the right to sue for and recover all damages for
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`infringement thereof, including past infringement.
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`13.
`
`The
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`’298 Patent,
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`titled “Method
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`for Decoding 2D-Compatible
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`Stereoscopic Video Flows,” was duly and properly issued by the USPTO on February
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`21, 2017. A copy of the ’298 Patent is attached hereto as Exhibit E. Realtime is the
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`owner and assignee of the ’298 Patent and holds the right to sue for and recover all
`
`damages for infringement thereof, including past infringement.
`
`14.
`
`The ’907 Patent, titled “System and Methods for Video and Audio Data
`
`Distribution,” was duly and properly issued by the USPTO on September 12, 2017. A
`
`copy of the ’907 Patent is attached hereto as Exhibit F. Realtime is the owner and
`
`assignee of the ’907 Patent and holds the right to sue for and recover all damages for
`
`infringement thereof, including past infringement.
`
`15.
`
`The ’477 Patent, titled “Video data compression systems,” was duly and
`
`properly issued by the USPTO on September 19, 2017. A copy of the ’477 Patent is
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`attached hereto as Exhibit G. Realtime is the owner and assignee of the ’477 Patent and
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`holds the right to sue for and recover all damages for infringement thereof, including
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`past infringement.
`
`COUNT I
`INFRINGEMENT OF U.S. PATENT NO. 7,386,046
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`Plaintiff re-alleges and incorporates by reference the foregoing paragraphs,
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`16.
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`4
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`as if fully set forth herein.
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`17.
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`On information and belief, Sony has made, used, offered for sale, sold
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`and/or imported into the United States Sony products that infringe the ’046 Patent, and
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`continues to do so. By way of illustrative example, these infringing products include,
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`without limitation, Sony’s video security camera series, including Minidomes series
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`cameras SNC-VM772R, SNC-VM641, SNC-EM641, SNC-VM642R, SNC-EM642R,
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`SNC-VM632R, SNC-VM602R, SNC-VM631, SNC-VM601, SNC-VM630, SNC-
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`VM600, SNC-EM632RC, SNC-EM602RC, SNC-EM631, SNC-EM601, SNC-EM630,
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`SNC-EM600, SNC-XM631, SNC-XM632, SNC-XM636, SNC-XM637, SNC-HM662,
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`SNC-DH280, SNC-DH240T, SNC-DH140T, SNC-DH240, SNC-DH140, SNC-DH260,
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`SNC-DH160, SNC-DH220T, SNC-DH120T, SNC-DH220, SNC-DH120, SNC-DH210T,
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`SNC-DH110T, SNC-DH210, SNC-DH110, SNC-ZM551, SNC-ZM550; Fixed series
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`cameras SNC-VB770, SNC-VB640, SNC-EB640, SNC-VB642D, SNC-EB642R, SNC-
`
`VB635, SNC-VB630, SNC-VB600, SNC-VB632D, SNC-EB632R, SNC-EB602R, SNC-
`
`EB630, SNC-EB600, SNC-EB630B, SNC-EB600B, SNC-CX600W, SNC-CX600, SNC-
`
`CH280, SNC-CH180, SNC-CH240, SNC-CH140, SNC-CH260, SNC-CH160, SNC-
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`CH220, SNC-CH120, SNC-CH110, SNC-ZB550; and Pan Tilt Zoom series cameras
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`SNC-WR632C, SNC-WR602C, SNC-WR602, SNC-WR630, SNC-WR600, SNC-ER585,
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`SNC-ER580, SNC-EP580, SNC-ER550, SNC-EP550, SNC-ER520, SNC-EP520, SNC-
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`RS86N, SNC-RS46N; other Pan/Tilt/Zoom cameras (for Broadcast & Production)
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`SRG360SHE, BRCH900/PAC2, and BRCH900; the cameras ILCE-7RM3, ILCE-7RM2;
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`Sony’s interchangeable-lens cameras, compact cameras; Sony camcorders, action
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`cameras, motion cameras, film cameras, digital film cameras, music video recorders,
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`5
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`professional camcorders; Sony Surveillance Video Encoders SNT-EX101, SNT-EX101E,
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`SNT-EX104, SNT-EX154, SNT-EP104 and SNT-EP154; and the Sony SAS-HD1SET
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`H.264 satellite and receiver combo, Sony PlayStation models including PS4 models, PS3
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`models, PS2 models, PS1 models, Sony Televisions such as the Z9D series, A1E series,
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`XBR-X930E-X940E series, XBR-X900E series, XBR-X850E series, XBR-X800E series,
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`X700E series, X690E series, XBR-X940D-X930D series, XBR-X750D-X700D series,
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`XBR-X800D series, XBR-X850D series, W630B series, W650D series, W600D series;
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`Sony Blu-Ray & DVD Players with playback capability of MPEG-4/AVC
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`(.mov, .3gp, .3g2, .3gpp, .3gpp2, .flv) or MPEG-4 AVC (.mkv, .mp4, .m4v, .m2ts, .mts)
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`such as the UBP-X800 and UBP-X1000ES series; Sony MP3 players; Sony in-car
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`receivers and players, Sony 4K products including the Sony 4K BRAVIA TVs, Sony
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`Video Unlimited 4K, Next generation 4K Media Player, Sony 4K Home Theater
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`Projectors such as the VPL-VW500ES and VPL-VW1100ES, Sony consumer 4K
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`Handycams including the FDR-AX1, FDR-AX100, 4K products using the Sony IMX274
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`Chipset including the Urban Security Group (USG) Sony Chip Ultra 4K IP PoE Network
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`Bullet Security Camera, the USG Sony Chip Ultra 4K IP PoE Network Dome Security
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`Camera, the USG Sony DSP Ultra 4K IP PoE Network Bullet Security Camera, and all
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`versions and variations thereof since the issuance of the ’046 Patent (“Accused
`
`Instrumentalities”).
`
`18.
`
`For example, Sony notes that several of the Accused Instrumentalities
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`possess H.264 capabilities on this web page on their United States of America website
`
`with the header “Did you know that Sony supports H.264?” The article lists several of the
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`Accused Instrumentalities in the column on the right, which has a header of “Related
`
`
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`6
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 7 of 133 PageID #: 7
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`Products.” In the first sentence underneath the main title, the article goes on to state that
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`“Sony H.264 cameras typically use one-fifth the bandwidth of cameras using older JPEG
`
`technology.” So from the above, it is clear that all, most or many of Sony’s cameras
`
`utilize H.264 technology when processing, compressing or recording video. See
`
`http://us.professional.sony.com/pro/article/video-security-h264-article:
`
`19.
`
`On that same website, Sony also mentions some background on the
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`
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`7
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`benefits of H.264, and also adds that “Since H.264 compression is so advanced, it does
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`demand more processing power than older formats, but as Sony network cameras
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`natively support H.264 in hardware this doesn’t make any difference in operational terms.”
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`The website further states that: “Sony is at the heart of this networked digital world, in
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`fact the Joint Video Team (JVT) Committee of which Sony is a long-standing member
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`recently received an Emmy Engineering Award for its work on H.264/MPEG-4's High
`
`Profile compression standard. So it should be no surprise that Sony has played a leading
`
`role in bringing the most advanced technology to video security. The first Sony security
`
`cameras using H.264 compression were introduced in 2006. Two years later, the Sony
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`range now has no less than seven cameras supporting H.264 – the widest range of
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`cameras in the industry!” See http://us.professional.sony.com/pro/article/video-security-
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`h264-article:
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`
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`8
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`_
`
`“a a
`
`In
`
`
`
`In rate lert'J
`
`mu
`
`2m-
`
`no
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`- 8: hardware support
`MPEG—4 compression not only operates on each individual frame (intra—
`frame compression) but also across a series of frames {inter-frame
`compression}. Since a large amount of data is frequently unchanged
`between frames, this enables a highly significant increase in
`compression.
`
`MPEG-4 is actually a series of standards, developed by ISOr'lEC Motion
`Pictures Expert Group {MM-:6), and MPEG—4 Part 2 is supported by most
`Sony network cameras In 2006, however, Sony began introducing a
`
`more advanced MPEG-4 format known as - {or MPEG—4 Part 10}.
`Specifically developed to provide high quality video at a much lower bit
`rate than MPEG-4, it uses a variety of different advanced techniques to
`achieve this aim — most notably block patterns used to predict
`movement across video frames
`
`tsult
`W to
`as
`35
`3a.
`
`35
`
`39
`’3
`
`a
`
`
`
`Como-mm 0!- W551 MPH;
`{mm my 5 mm”).
`
`The practical benefits of these varying compression formats can be illustrated quite simply. In the above diagram you
`can see JPEG compression operating at 260Kbi’s, while MPEG-4 transmits at 85Kb!s and- transmits at 500115. To
`put this into perspective, MPEG-4 requires approximately one—third of the bandwidth used by JPEG and - requires
`just one-fifth.
`
`Since - compression is so advanced, it does demand more processing power than older formats, but as Sony
`network cameras natively support- in hardware this doesn't make any difference in operational terms.
`
`Leadership 8: Compatibility
`A five-fold increase in the capacity of an IP—based network might seem science fiction, but in a networked digital
`wodd it should come as no surprise that there's huge amount ofinvestment in ensuring the highest possible video
`quality at the lowest possible bitrate. - technology is currently used in Blu—ray discs, HD'llnII broadcasting {including
`BBC HD and Euro 1080}, AVCHD {a HD recording format for HDD and Solid State camcorders) and a wide variety of
`mobile devices, induding Apple's iPhone and Sony's PSP. The format is also commonly used online for high quality
`content, for example HD movie trailers, and it's also been adopted by YouTube for its new high quality mode. This also
`means most media players, such as GuickTrme or VLC, support - encoded content.
`
`Sony is at the heart of this networked digital world, in fact the Joint‘v'ideo Team (NT) Committee ofwftich Sony is a long—
`standing member recently received an Emmy Engineering Award for its work on -/MPEG—4's High Profile
`compression standard. So it should be no surprise that Sony has played a leading role in bringing the most advanced
`technology to video security. The first Sony security cameras using - compression were introduced in 2006. Titro
`years later, the Sony range now has no less than seven cameras supporting - — the widest range of cameras in the
`industry!
`
`More information on Sony Video Security solutions
`
`‘ The vertical axis shows Peak Signal—to—Noise Ratio [PSNRL a metric for the 'qualit'r of compressed video images,
`while the horizontal axis shows the transmission bit rate. The graph showsjust one example of comparing bit rates at
`which JPEG, MPEG-4, and- images can be transmitted. Actual bit rates for transmitting data using these three
`compression formats differ with image quality and image size settings. In this example, the video para meters are; 10
`frames per second, 1mm [GCI F1 resolution, 10 seconds of video [100 frames].
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`9
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`20.
`
`As an illustrative example, the website for Sony’s SNC-ZM550 camera
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`states in its “Overview” tab that “The SNC-ZM550 offers Dual Streaming, which can
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`feature any combination of three industry-standard compression formats – JPEG, MPEG-
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`4 and H.264 – meaning that the camera uses the best compression format for every kind
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`of data.” See http://us.professional.sony.com/pro/product/video-security-ip-cameras-
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`minidomes/snc-zm550/overview/#overview:
`
`
`
`21.
`
`On the same web site, under the “Features” tab, it states that “The SNC-
`
`ZM550 supports dual streaming with…H.264, the alternative for severely limited-
`
`bandwidth
`
`networks,
`
`providing
`
`twice
`
`the
`
`efficiency
`
`of MPEG-4.”
`
`See
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`
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`10
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`

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`http://us.professional.sony.com/pro/product/video-security-ip-cameras-minidomes/snc-
`
`zm550/features/#features:
`
`
`
`22.
`
`As another illustrative example, the website for Sony’s SNC-ER550
`
`camera has a “Features” tab which states: “Gain the huge surveillance benefits of
`
`excellent picture quality with 720p HD supporting 30 fps at H.264 giving 1280 x 720
`
`maximum resolution.” See http://us.professional.sony.com/pro/product/video-security-ip-
`
`cameras-pan-tilt-zoom/snc-er550/features/#features:
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`11
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`

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`23.
`
`As yet another illustrative example, the website for Sony’s SRG360SHE
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`camera (sub-header: “Triple-Stream PoE + Full HD PTZ Camera (3G-SDI, HDMI and IP
`
`H.264)”) mentions, under its “Overview” tab: “Simultaneous transmission of 3G-SDI,
`
`HDMI and IP H.264 full-HD video” and “This camera can simultaneously output
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`1080/60p baseband video through 3G-SDI, HDMI, and a H.264 compressed video/audio
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`stream via IP” as well as “The SRG-360SHE camera features 30x optical zoom capability
`
`and 12x digital zoom for frame-filling close ups in great detail with a 65-degree viewing
`
`angle to produce H.264 IP video streaming with selectable bit rates.”
`
` See
`
`
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`12
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`

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`https://pro.sony.com/bbsc/ssr/cat-broadcastcameras/cat-
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`broadcastcamerapantiltzoom/product-SRG360SHE/:
`
`
`
`24.
`
`Furthermore, Sony’s Surveillance Video Encoders all use H.264 as a
`
`“Video compression format” as can be seen by
`
`the below datasheet. See
`
`https://pro.sony.com/bbsccms/assets/files/cat/camsec/brochures/quickref_sntexep.pdf:
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`
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`13
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`
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`25.
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`Sony further has a SAS-HD1SET H.264 Satellite/Receiver Combo, as can
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`be seen by this article on Engadget. See https://www.engadget.com/2008/09/02/sony-
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`rolls-out-sas-hd1set-h-264-satellite-receiver-combo/:
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`
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`14
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`
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`26.
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`The Accused Instrumentalities determine a parameter of at least a portion
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`of a video data block. As shown below, examples of such parameters include bitrate (or
`
`max video bitrate) and resolution parameters. Different parameters correspond with
`
`different end applications. H.264 provides for multiple different ranges of such
`
`
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`15
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`

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`parameters, each included in the “profiles” and “levels” as defined by the H.264 standard,
`
`from
`
`the below shown paragraphs from a white paper and Wikipedia. See
`
`http://www.axis.com/files/whitepaper/wp_h264_31669_en_0803_lo.pdf at 5:
`
`
`
`See https://en.wikipedia.org/wiki/H.264/MPEG-4_AVC:
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`
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`16
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`
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`27.
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`A video data block is organized by the group of pictures (GOP) structure,
`
`which is a “collection of successive pictures within a coded video stream.” See
`
`https://en.wikipedia.org/wiki/Group_of_pictures. A GOP structure can contain intra
`
`coded pictures (I picture or I frame), predictive coded pictures (P picture or P frame),
`
`bipredictive coded pictures (B picture or B frame) and direct coded pictures (D picture or
`
`D frames, or DC direct coded pictures which are used only in MPEG-1 video). See
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`https://en.wikipedia.org/wiki/Video_compression_picture_types (for descriptions of I
`
`frames, P frames and B frames); https://en.wikipedia.org/wiki/MPEG-1#D-frames (for
`
`descriptions of D frames). Thus, at least a portion of a video data block would also make
`
`up a GOP structure and could also contain I frames, P frames, B frames and/or D frames.
`
`The GOP structure also reflects the size of a video data block, and the GOP structure can
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`
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`be controlled and used to fine-tune other parameters (e.g. bitrate, max video bitrate and
`
`resolution parameters) or even be considered as a parameter by itself.
`
`28.
`
`Based on the bitrate and/or resolution parameter identified (e.g. bitrate,
`
`max video bitrate, resolution, GOP structure or frame type within a GOP structure), any
`
`H.264-compliant system such as the Accused Instrumentalities would determine which
`
`profile (e.g., “baseline,” “extended,” “main”, or “high”) corresponds with that parameter,
`
`then select between at least two asymmetric compressors. If baseline or extended is the
`
`corresponding profile, then the system will select a Context-Adaptive Variable Length
`
`Coding (“CAVLC”) entropy encoder. If main or high is the corresponding profile, then
`
`the system will select a Context-Adaptive Binary Arithmetic Coding (“CABAC”) entropy
`
`encoder. Both encoders are asymmetric compressors because it takes a longer period of
`
`time for them to compress data than to decompress data. See
`
`https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-ii/:
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`
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`18
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`
`
`
`
`See http://web.cs.ucla.edu/classes/fall03/cs218/paper/H.264_MPEG4_Tutorial.pdf at 7:
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`
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`19
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 20 of 133 PageID #: 20
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`
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`Moreover, the H.264 Standard requires a bit-flag descriptor, which is set to
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`determine the correct decoder for the corresponding encoder. As shown below, if the flag
`
`= 0, then CAVLC must have been selected as the encoder; if the flag = 1, then CABAC
`
`must
`
`have
`
`been
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`selected
`
`as
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`the
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`encoder.
`
`
`
`See
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`https://www.itu.int/rec/dologin_pub.asp?lang=e&id=T-REC-H.264-201304-S!!PDF-
`
`E&type=items (Rec. ITU-T H.264 (04/2013)) at 80:
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`
`
`
`
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`
`
`29.
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`The Accused Instrumentalities compress the at least the portion of the data
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`20
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 21 of 133 PageID #: 21
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`block with the selected one or more asymmetric compressors to provide one or more
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`compressed data blocks, which can be organized in a GOP structure (see above). After
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`its selection, the asymmetric compressor (CAVLC or CABAC) will compress the video
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`data to provide various compressed data blocks, which can also be organized in a GOP
`
`structure,
`
`as
`
`discussed
`
`previously
`
`above.
`
`
`
`See
`
`https://sonnati.wordpress.com/2007/10/29/how-h-264-works-part-ii/:
`
`See
`
`http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.602.1581&rep=rep
`
`1&type=pdf at 13:
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`
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`21
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 22 of 133 PageID #: 22
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`See http://www.ijera.com/papers/Vol3_issue4/BM34399403.pdf at 2:
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`
`
`30.
`
`Therefore, from at least the above, Sony has directly infringed and
`
`continues to infringe the ’046 Patent, for example, through its own use and testing of the
`
`Accused Instrumentalities, which when used, practices the system claimed by Claim 40
`
`of the ’046 Patent, namely, a system, comprising: a data compression system for
`
`compressing and decompressing data input; a plurality of compression routines
`
`selectively utilized by the data compression system, wherein a first one of the plurality of
`
`compression routines includes a first compression algorithm and a second one of the
`
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`22
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 23 of 133 PageID #: 23
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`plurality of compression routines includes a second compression algorithm; and a
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`controller for tracking throughput and generating a control signal to select a compression
`
`routine based on the throughput, wherein said tracking throughput comprises tracking a
`
`number of pending access requests to a storage device; and wherein when the controller
`
`determines that the throughput falls below a predetermined throughput threshold, the
`
`controller commands the data compression engine to use one of the plurality of
`
`compression routines to provide a faster rate of compression so as to increase the
`
`throughput. Upon information and belief, Sony uses the Accused Instrumentalities to
`
`practice infringing methods for its own internal non-testing business purposes, while
`
`testing the Accused Instrumentalities, and while providing technical support and repair
`
`services for the Accused Instrumentalities to their customers.
`
`31.
`
`On information and belief, the Accused Instrumentalities store at least a
`
`portion of the one or more compressed data blocks in buffers, hard disk, or other forms of
`
`memory/storage.
`
`32.
`
`On information and belief, Sony also directly infringes and continues to
`
`infringe other claims of the ’046 Patent, for similar reasons as explained above with
`
`respect to Claim 40 of the ’046 Patent.
`
`33.
`
`On information and belief, all of the Accused Instrumentalities perform
`
`the claimed methods in substantially the same way, e.g., in the manner specified in the
`
`H.264 standard.
`
`34.
`
`On information and belief, use of the Accused Instrumentalities in their
`
`ordinary and customary fashion results in infringement of the systems and/or methods
`
`claimed by the ’046 Patent.
`
`
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`23
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 24 of 133 PageID #: 24
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`35.
`
`On information and belief, Sony has had knowledge of the ‘046 Patent
`
`since at least the filing of this Complaint or shortly thereafter, and on information and
`
`belief, Sony knew of the ’046 Patent and knew of its infringement, including by way of
`
`this lawsuit. By the time of trial, Sony will have known and intended (since receiving
`
`such notice) that its continued actions would actively induce and contribute to the
`
`infringement of the claims of the ’046 Patent.
`
`36.
`
`Upon information and belief, Sony’s affirmative acts of making, using,
`
`and selling the Accused Instrumentalities, and providing implementation services and
`
`technical support to users of the Accused Instrumentalities, including, e.g., through
`
`training, demonstrations, brochures, installation and user guides, have induced and
`
`continue to induce users of the Accused Instrumentalities to use them in their normal and
`
`customary way to infringe the ’046 Patent by practicing a system, comprising: a data
`
`compression system for compressing and decompressing data input; a plurality of
`
`compression routines selectively utilized by the data compression system, wherein a first
`
`one of the plurality of compression routines includes a first compression algorithm and a
`
`second one of the plurality of compression routines includes a second compression
`
`algorithm; and a controller for tracking throughput and generating a control signal to
`
`select a compression routine based on the throughput, wherein said tracking throughput
`
`comprises tracking a number of pending access requests to a storage device; and wherein
`
`when the controller determines that the throughput falls below a predetermined
`
`throughput threshold, the controller commands the data compression engine to use one of
`
`the plurality of compression routines to provide a faster rate of compression so as to
`
`increase the throughput. For example, Sony adopted H.264 as its video codec in its
`
`
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`24
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 25 of 133 PageID #: 25
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`products/services, such as, e.g., Sony’s cameras, Surveillance Video Encoders and
`
`Satellite/Receiver combos. For similar reasons, Sony also induces its customers to use
`
`the Accused Instrumentalities to infringe other claims of the ’046 Patent. Sony
`
`specifically intended and was aware that these normal and customary activities would
`
`infringe the ’046 Patent. Sony performed the acts that constitute induced infringement,
`
`and would induce actual infringement, with the knowledge of the ‘046 Patent and with
`
`the knowledge, or willful blindness to the probability, that the induced acts would
`
`constitute infringement. On information and belief, Sony engaged in such inducement to
`
`promote the sales of the Accused Instrumentalities. Accordingly, Sony has induced and
`
`continues to induce users of the Accused Instrumentalities to use the Accused
`
`Instrumentalities in their ordinary and customary way to infringe the ’046 Patent,
`
`knowing that such use constitutes infringement of the ’046 Patent. Accordingly, Sony has
`
`been, and currently is, inducing infringement of the ’046 Patent, in violation of 35 U.S.C.
`
`§ 271(b).
`
`37.
`
`Sony has also infringed, and continues to infringe, claims of the ’046
`
`Patent by offering to commercially distribute, commercially distributing, making, and/or
`
`importing the Accused Instrumentalities, which are used in practicing the process, or
`
`using the systems, of the ’046 Patent, and constitute a material part of the invention.
`
`Sony knows the components in the Accused Instrumentalities to be especially made or
`
`especially adapted for use in infringement of the ’046 Patent, not a staple article, and not
`
`a commodity of commerce suitable for substantial noninfringing use. Accordingly, Sony
`
`has been, and currently is, contributorily infringing the ’046 Patent, in violation of 35
`
`U.S.C. § 271(c).
`
`
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`25
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`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 26 of 133 PageID #: 26
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`38.
`
`By making, using, offering for sale, selling and/or importing into the
`
`United States the Accused Instrumentalities, and touting the benefits of using the
`
`Accused Instrumentalities’ compression features, Sony has injured Realtime and is liable
`
`to Realtime for infringement of the ’046 Patent pursuant to 35 U.S.C. § 271.
`
`39.
`
`As a result of Sony’s infringement of the ’046 Patent, Plaintiff Realtime is
`
`entitled to monetary damages in an amount adequate to compensate for Sony’s
`
`infringement, but in no event less than a reasonable royalty for the use made of the
`
`invention by Sony, together with interest and costs as fixed by the Court.
`
`COUNT II
`INFRINGEMENT OF U.S. PATENT NO. 8,634,462
`
`Plaintiff re-alleges and incorporates by reference the foregoing paragraphs,
`
`40.
`
`as if fully set forth herein.
`
`41.
`
`On information and belief, Sony has made, used, offered for sale, sold
`
`and/or imported into the United States products that infringe the ’462 Patent, and
`
`continues to do so. By way of illustrative example, these infringing products include,
`
`without limitation, Sony’s video security camera series, including Minidomes series
`
`cameras SNC-VM772R, SNC-VM641, SNC-EM641, SNC-VM642R, SNC-EM642R,
`
`SNC-VM632R, SNC-VM602R, SNC-VM631, SNC-VM601, SNC-VM630, SNC-
`
`VM600, SNC-EM632RC, SNC-EM602RC, SNC-EM631, SNC-EM601, SNC-EM630,
`
`SNC-EM600, SNC-XM631, SNC-XM632, SNC-XM636, SNC-XM637, SNC-HM662,
`
`SNC-DH280, SNC-DH240T, SNC-DH140T, SNC-DH240, SNC-DH140, SNC-DH260,
`
`SNC-DH160, SNC-DH220T, SNC-DH120T, SNC-DH220, SNC-DH120, SNC-DH210T,
`
`SNC-DH110T, SNC-DH210, SNC-DH110, SNC-ZM551, SNC-ZM550; Fixed series
`
`cameras SNC-VB770, SNC-VB640, SNC-EB640, SNC-VB642D, SNC-EB642R, SNC-
`
`
`
`26
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`

`

`Case 1:17-cv-01693-JFB-SRF Document 1 Filed 11/21/17 Page 27 of 133 PageID #: 27
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`VB635, SNC-VB630, SNC-VB600, SNC-VB632D, SNC-EB632R, SNC-EB602R, SNC-
`
`EB630, SNC-EB600, SNC-EB630B, SNC-EB600B, SNC-CX600W, SNC-CX600, SNC-
`
`CH280, SNC-CH180, SNC-CH240, SNC-CH140, SNC-CH260, SNC-CH160, SNC-
`
`CH220, SNC-CH120, SNC-CH110, SNC-ZB550; and Pan Tilt Zoom series cameras
`
`SNC-WR632C, SNC-WR602C, SNC-WR602, SNC-WR630, SNC-WR600, SNC-ER585,
`
`SNC-ER580, SNC-EP580, SNC-ER550, SNC-EP550, SNC-ER520, SNC-EP520, SNC-
`
`RS86N, SNC-RS46N; other Pan/Tilt/Zoom cameras (for Broadcast & Production)
`
`SRG360SHE, BRCH900/PAC2, and BRCH900; the cameras ILCE-7RM3, ILCE-7RM2;
`
`Sony’s intercha