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`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF DELAWARE
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`MARKETS-ALERT PTY. LTD.,
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`Plaintiff,
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`v.
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`THE CHARLES SCHWAB
`CORPORATION,
`CHARLES SCHWAB & CO., INC.,
`LIGHTSPEED FINANCIAL, INC.,
`LIGHTSPEED TRADING, LLC,
`OPTIONSXPRESS HOLDINGS INC.,
`OPTIONSXPRESS, INC.,
`RECOGNIA (U.S.) INC.,
`RECOGNIA, INC.,
`SCHWAB HOLDINGS, INC.,
`TRADEKING GROUP, INC.,
`TRADEKING HOLDINGS, LLC, and
`TRADEKING, LLC,
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`Defendants.
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`Civil Action No.: ____________________
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`JURY TRIAL DEMANDED
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`COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Markets-Alert Pty. Ltd. (“Markets-Alert” or “Plaintiff”) hereby alleges patent
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`infringement against Defendants The Charles Schwab Corporation (“Schwab Corp”), Schwab
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`Holdings, Inc. (“Schwab Holdings”), and Charles Schwab & Co., Inc. (“Schwab & Co”)
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`(individually and collectively, “Schwab”), LightSpeed Financial, Inc. (“LightSpeed Financial”)
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`and LightSpeed Trading, LLC (“LightSpeed Trading) (individually and collectively,
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`“LightSpeed”), OptionsXpress Holdings Inc. (“OXH”) and OptionsXpress, Inc. (“OXI”)
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`(individually and collectively, “OptionsXpress”), Recognia, Inc. (“Recognia Inc”) and Recognia
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`(U.S.) Inc. (“Recognia US”) (individually and collectively, “Recognia”), and Tradeking Group,
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`Inc. (“Tradeking Group”), Tradeking Holdings, LLC (“Tradeking Holdings”), and Tradeking,
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`766207.3
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`BLOOMBERG ET AL - EXHIBIT 1019
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`LLC (“Tradeking LLC”) (individually and collectively, “Tradeking”), on personal knowledge
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`and information and belief, as follows:
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`THE PARTIES
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`1.
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`Plaintiff is an Australian corporation with a principal location at 7-9 Cross Street,
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`Bankstown NSW 2200, Australia.
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`2.
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`On information and belief, Defendant Schwab Corp is a Delaware corporation
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`with a principal place of business at 211 Main Street, San Francisco, California 94105.
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`3.
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`On information and belief, Defendant Schwab Holdings is a Delaware corporation
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`with a principal place of business at 101 Montgomery Street # 2350, San Francisco, California
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`94104, and is a subsidiary of Schwab Corp.
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`4.
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`On information and belief, Defendant Schwab & Co is a California corporation
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`with a principal place of business at 101 Montgomery Street # 2350, San Francisco, California
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`94104, and is a subsidiary of Schwab Holdings and/or Schwab Corp.
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`5.
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`On information and belief, Defendant LightSpeed Financial, is a Delaware
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`corporation with a principal place of business at 148 Madison Avenue, Floor 9, New York, New
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`York 10016.
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`6.
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`On information and belief, Defendant LightSpeed Trading, is a New York limited
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`liability company with a principal place of business at 148 Madison Avenue, Floor 9, New York,
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`New York 10016 and is a subsidiary of LightSpeed Financial.
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`7.
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`On information and belief, Defendant OXH is Delaware corporation with a
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`principal place of business at 311 W. Monroe Street, Suite 1000, Chicago, Illinois 60606, and is
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`a subsidiary of Schwab Corp, Schwab Holdings, and/or Schwab & Co.
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`8.
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`On information and belief, Defendant OXI is Delaware corporation with a
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`principal place of business at 311 W. Monroe Street, Suite 1000, Chicago, Illinois 60606, and is
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`a subsidiary of OXH.
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`9.
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`On information and belief, Defendant Recognia Inc is a Canadian corporation
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`766207.3
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`with a principal place of business at 200-301 Moodie Drive, Ottawa, ON, Canada K2H 9C4.
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`10.
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`On information and belief, Defendant Recognia US is a Delaware corporation
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`with a principal place of business at 44 Wall Street, 12th Floor, New York, New York 10005,
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`and is a subsidiary of Recognia Inc.
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`11.
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`On information and belief, Defendant Tradeking Group is a Delaware corporation
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`with principal place of business at 13024 Ballantyne Corporate Place, Suite 500, Charlotte, NC
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`28277.
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`12.
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`On information and belief, Defendant Tradeking LLC is a Delaware limited
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`liability company with principal place of business at 13024 Ballantyne Corporate Place, Suite
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`500, Charlotte, NC 28277, and is a subsidiary of Tradeking Group.
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`13.
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`On information and belief, Defendant Tradeking Holdings, is a Delaware limited
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`liability company with principal place of business at 13024 Ballantyne Corporate Place, Suite
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`500, Charlotte, NC 28277, and is affiliated with Tradeking Group.
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`JURISDICTION AND VENUE
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`14.
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`This action arises under the patent laws of the United States, Title 35 of the
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`United States Code. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331
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`and 1338(a).
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`15.
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`Personal jurisdiction and venue are proper in this district under 28 U.S.C. §§
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`1391(b)-(c), and 1400(b). On information and belief, each Defendant has a regular and
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`established place of business in this district or state, has transacted business in this district or
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`state, and/or has committed, contributed to, and/or induced acts of patent infringement in this
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`district or state.
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`16.
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`On information and belief, each Defendant is subject to this Court’s specific and
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`general personal jurisdiction consistent with the principles of due process and/or the Long Arm
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`Statute, due at least to its substantial business in this forum directly related to the allegations set
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`forth herein, including: (i) a portion of the infringement alleged herein, including making, using,
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`766207.3
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`selling, offering to sell, and/or importing products, methods and/or systems that infringe the
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`patent-in-suit; (ii) the presence of established distribution and/or marketing channels; and (iii)
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`regularly doing or soliciting business, engaging in other persistent courses of conduct, and/or
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`deriving substantial revenue from goods and services provided to individuals and entities in this
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`state and judicial district.
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`COUNT I
`INFRINGEMENT
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`17.
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`Plaintiff is the exclusive owner of all rights to United States Patent No. 7,941,357,
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`entitled “Trading System” (“‘357 Patent”), including but not limited to the right to sue for
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`damages. The United States Patent and Trademark Office duly issued the ‘357 Patent on May
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`10, 2011, which has a priority date of at least October 27, 2000. A true and correct copy of the
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`‘357 Patent is attached to this Complaint as Exhibit A.
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`18.
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`On information and belief, each of Defendants Recognia Inc and Recognia US
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`has been and now is infringing, inducing others to infringe, and/or contributorily infringing,
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`literally, under the doctrine of equivalents, and/or jointly, one or more claims of the ‘357 Patent
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`in this state, in this judicial district, and elsewhere in the United States by, among other things,
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`making, using, selling, offering to sell, and/or importing systems and methods that implement,
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`utilize or otherwise embody the patented invention, including by way of example certain
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`real-time stock trading platform products and services, such as its “Technical Insight,”
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`“Technical Event Viewer,” “Intraday Trader,” “Strategy Builder,” “Value Analyzer,”
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`“Alertwire,” and “Stock Chart Patterns,” which are described at least in part online at
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`http://www.recognia.com/products. Therefore, each of Defendants Recognia Inc and Recognia
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`US is liable for infringement of the ‘357 Patent.
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`19.
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`On information and belief, each of Defendants Schwab Corp, Schwab Holdings
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`and Schwab & Co has been and now is infringing, inducing others to infringe, and/or
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`contributorily infringing, literally, under the doctrine of equivalents, and/or jointly, one or more
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`claims of the ‘357 Patent in this state, in this judicial district, and elsewhere in the United States
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`766207.3
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`by, among other things, making, using, selling, offering to sell, and/or importing systems and
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`methods that implement, utilize or otherwise embody the patented invention, including by way
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`of example certain real-time stock trading platform products and services, such as its
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`“StreetSmart Edge,” other Web Trading and Mobile Trading Tools, and Defendant Recognia’s
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`“Technical Insight,” “Technical Event Viewer,” “Intraday Trader,” “Strategy Builder,” “Value
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`Analyzer,” “Alertwire,” and “Stock Chart Patterns,” which are described at least in part online at
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`http://activetrader.schwab.com/trading-tools/software-trading/overview.aspx,
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`http://www.recognia.com/products, and
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`http://activetrader.schwab.com/trading-tools/software-trading/overview.aspx#. Therefore, each
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`of Defendants Schwab Corp, Schwab Holdings and Schwab & Co is liable for infringement of
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`the ‘357 Patent.
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`20.
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`On information and belief, each of Defendants LightSpeed Financial and
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`LightSpeed Trading has been and now is infringing, inducing others to infringe, and/or
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`contributorily infringing, literally, under the doctrine of equivalents, and/or jointly, one or more
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`claims of the ‘357 Patent in this state, in this judicial district, and elsewhere in the United States
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`by, among other things, making, using, selling, offering to sell, and/or importing systems and
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`methods that implement, utilize or otherwise embody the patented invention, including by way
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`of example certain real-time stock trading platform products and services, such as its
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`“LightSpeed Trader Active Trading Platform,” “Stock Scanning,” and “Technical Analysis,” and
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`Defendant Recognia’s “Technical Insight,” “Technical Event Viewer,” “Intraday Trader,”
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`“Strategy Builder,” “Value Analyzer,” “Alertwire,” and “Stock Chart Patterns,” which are
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`described at least in part online at http://www.lightspeed.com/?page_id=5005,
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`http://www.lightspeed.com/?page_id=5101, http://www.lightspeed.com/?page_id=5109,
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`http://www.lightspeed.com/?page_id=10665, and http://www.recognia.com/products.
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`Therefore, each of Defendants LightSpeed Financial and LightSpeed Trading is liable for
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`infringement of the ‘357 Patent.
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`21.
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`On information and belief, each of Defendants OXI and OXH has been and now
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`766207.3
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`is infringing, inducing others to infringe, and/or contributorily infringing, literally, under the
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`doctrine of equivalents, and/or jointly, one or more claims of the ‘357 Patent in this state, in this
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`judicial district, and elsewhere in the United States by, among other things, making, using,
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`selling, offering to sell, and/or importing systems and methods that implement, utilize or
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`otherwise embody the patented invention, including by way of example certain real-time stock
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`trading platform products and services, such as its “The Screener,” “Strategy Scan,” “Xtend,”
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`and “OX Mobile,” and Defendant Recognia’s “Technical Insight,” “Technical Event Viewer,”
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`“Intraday Trader,” “Strategy Builder,” “Value Analyzer,” “Alertwire,” and “Stock Chart
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`Patterns,” which are described at least in part online at
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`http://www.optionsxpress.com/tools_research/powerful_tools.aspx?said=TopNav_ToolsResearc
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`h_Top4, http://www.recognia.com/products, and http://www.recognia.com/vendor/optionsxpress.
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`Therefore, each of Defendants OXI and OXH is liable for infringement of the ‘357 Patent.
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`22.
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`On information and belief, each of Defendants Tradeking Group, Tradeking
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`Holdings, and Tradeking LLC has been and now is infringing, inducing others to infringe, and/or
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`contributorily infringing, literally, under the doctrine of equivalents, and/or jointly, one or more
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`claims of the ‘357 Patent in this state, in this judicial district, and elsewhere in the United States
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`by, among other things, making, using, selling, offering to sell, and/or importing systems and
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`methods that implement, utilize or otherwise embody the patented invention, including by way
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`of example certain real-time stock trading platform products and services, such as its “Options
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`and Strategy Scanners,” “Stock, ETF + Mutual Fund Screeners,” “Technical Analysis” tools, and
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`“Tradeking Live,” and Defendant Recognia’s “Technical Insight,” “Technical Event Viewer,”
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`“Intraday Trader,” “Strategy Builder,” “Value Analyzer,” “Alertwire,” and “Stock Chart
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`Patterns,” which are described at least in part online at https://www.tradeking.com/trading/tools,
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`https://www.tradeking.com/labs/live, http://www.recognia.com/products, and
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`https://www.tradeking.com/trading/research/technical-analysis. Therefore, each of Defendants
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`Tradeking Group, Tradeking Holdings, and Tradeking LLC is liable for infringement of the ‘357
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`Patent.
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`766207.3
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`23.
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`On information and belief, each of Defendants Schwab, OptionsXpress,
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`Tradeking, and LightSpeed use, implement or otherwise incorporate one or more real-time
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`technical analysis tools and/or stock trading platform products and services provided by or
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`through Defendant Recognia in its respective trading platform products and services, such that
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`Plaintiff’s right to relief against Defendants is joint, several, or in the alternative with respect to
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`or arises out of the same transaction, occurrence, or series of transactions or occurrences, and
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`gives rise to common questions of law or fact.
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`24.
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`Plaintiff has been and is irreparably harmed by each Defendant’s infringement of
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`the ‘357 Patent. Plaintiff has incurred and will continue to incur substantial damages, including
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`monetary damages, unless each Defendant is enjoined from further acts of infringement.
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`25.
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`By notice of this complaint, at least, each Defendant has been aware, since the
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`filing date or before, that the accused instrumentalities are not staple articles or commodities of
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`commerce suitable for substantial non-infringing use and are especially made and/or adapted for
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`use in infringing the ‘357 Patent, and each Defendant’s ongoing infringement is willful and
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`deliberate.
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`26.
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`To the extent that facts uncovered in discovery show that a Defendant’s past
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`infringement has been willful, Plaintiff reserves the right to seek enhanced damages and attorney
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`fees for such past infringement.
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`PRAYER FOR RELIEF
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`WHEREFORE, Plaintiff respectfully requests that this Court:
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`(a)
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`enter judgment in favor of Plaintiff that each Defendant has infringed, and
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`continues to infringe, the ‘357 Patent;
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`(b)
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`enjoin each Defendant, its officers, subsidiaries, agents, servants, employees, and
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`all persons in active concert with any of them, from any further infringement of the ‘357 Patent;
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`(c)
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`award Plaintiff all monetary relief available under the patent laws of the United
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`States, including but not limited to actual damages, pre- and post- judgment interest, enhanced
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`766207.3
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`damages, and costs pursuant to 35 U.S.C. § 284;
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`(d)
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`declare this case exceptional and award Plaintiff its reasonable attorneys’ fees
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`pursuant to 35 U.S.C. § 285; and
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`(e)
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`grant Plaintiff such other relief as the Court deems just and equitable.
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`DEMAND FOR JURY TRIAL
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`Plaintiff demands a trial by jury on all issues so triable pursuant to Rule 38 of the Federal
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`Rules of Civil Procedure.
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`Date:
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`June 20, 2012
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`Respectfully submitted,
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`/s/ $&’%* "! #*%(%)
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`Adam W. Poff (Bar No. 3990)
`Pilar G. Kraman (Bar No. 5199)
`YOUNG CONAWAY STARGATT
`& TAYLOR, LLP
`Rodney Square
`1000 North King Street
`Wilmington, DE 19801
`Phone: (302) 571-6600
`Email: apoff@ycst.com
`Email: pkraman@ycst.com
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`Adrian M. Pruetz (Cal. Bar No. 118215)
`Andrew Y. Choung (Cal. Bar No. 203192)
`Lauren Gibbs (Cal. Bar No. 251569)
`GLASER WEIL FINK JACOBS
`HOWARD AVCHEN & SHAPIRO LLP
`10250 Constellation Boulevard, 19th Floor
`Los Angeles, CA 90067
`Phone: (310) 553-3000
`Fax: (310) 785-3506
`E-mail: apruetz@glaserweil.com
`E-mail: achoung@glaserweil.com
`E-mail: lgibbs@glaserweil.com
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`Attorneys for Plaintiff Markets-Alert Pty. Ltd.
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`766207.3
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