`
`
`
`
`
`UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF WASHINGTON
`AT SEATTLE
`
`Case No.
`
`
`
`COMPLAINT FOR PATENT
`INFRINGEMENT
`
`DEMAND FOR JURY TRIAL
`
`
`ZILLOW, INC.,
`
`
`
`v.
`
`TRULIA, INC.
`
`Plaintiff,
`
`
`Defendant.
`
`
`Plaintiff Zillow, Inc. (Zillow) for its Complaint against the defendant Trulia, Inc.
`
`
`
`
`
`
`
`
`
`(Trulia), hereby alleges as follows:
`
`THE PARTIES
`
`Plaintiff Zillow is a corporation duly organized under the laws of
`
`
`1.
`
`Washington with its principal place of business at 1301 Second Avenue, Floor 31, Seattle,
`
`Washington, 98101.
`
`2.
`
`Upon information and belief, Defendant Trulia is a corporation organized
`
`and existing under the laws of the State of Delaware, with its principal place of business at
`
`116 New Montgomery Street, #300, San Francisco, California, 94105.
`
`JURISDICTION AND VENUE
`
`This action arises under the United States Patent Laws, codified at
`
`
`3.
`
`35 U.S.C. § 1, et seq.
`COMPLAINT FOR PATENT INFRINGEMENT - Page 1
`
`
`
`
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`TRULIA - EXHIBIT 1012
`
`
`
`Case 2:12-cv-01549-JLR Document 1 Filed 09/12/12 Page 2 of 8
`
`
`
`4.
`
`This Court has exclusive subject matter jurisdiction under 28 U.S.C.
`
`§§ 1331 and 1338(a).
`
`5.
`
`Trulia has sufficiently continuous and systematic contacts with this judicial
`
`district and the state of Washington to subject it to the jurisdiction of this Court. Trulia’s
`
`website, Trulia.com, lists properties in this judicial district and throughout Washington for
`
`sale and advertises to users, real estate agents, home buyers, home sellers and residents
`
`throughout Washington to buy and sell properties and search for real estate information on
`
`Trulia.com. On information and belief, Trulia receives revenue from Washington
`
`companies who advertise their products and services on Trulia.com. In addition, Trulia has
`
`committed acts of infringement in this District, and continues to commit acts of
`
`infringement in this District, entitling Zillow to relief.
`
`6.
`
`Venue is proper in the Western District of Washington pursuant to 28
`
`U.S.C. §§ 1391(b), (c) and 1400(b), because Trulia has committed acts of direct and
`
`indirect infringement in the Western District of Washington, has transacted business in the
`
`Western District of Washington, and has established minimum contacts with the Western
`
`District of Washington.
`
`FACTUAL BACKGROUND
`
`7.
`
`Zillow launched its real estate information website Zillow.com in 2006,
`
`revolutionizing the industry by offering users its patented Zestimate home valuation
`
`(“Zestimate”) service. Consistent with its mission to empower users, the Zillow Zestimate
`
`permits home owners and real estate professionals to update automatic valuations of homes
`
`with additional home facts and information to refine the valuation. To date, more than 33
`
`million homes have been updated in this way, or 33 percent of Zillow’s database of more
`
`than 100 million homes, making the Zillow database substantially more useful and accurate
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000
`
`COMPLAINT FOR PATENT INFRINGEMENT - Page 2
`
`
`
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`Case 2:12-cv-01549-JLR Document 1 Filed 09/12/12 Page 3 of 8
`
`
`
`for users. Zillow’s innovative Zestimates have proved very popular and have played a
`
`major role in Zillow’s success and growth into the largest real estate website, and the most
`
`popular suite of mobile real estate applications for smartphones and tablet computers.
`
`8.
`
`On February 3, 2006, Zillow applied for a patent for one of the innovative
`
`processes that has helped drive Zillow’s success—Zillow’s process for using data input by
`
`users to refine Zillow’s automatic home valuations. On June 28, 2011, the United States
`
`Patent and Trademark Office issued United States Patent No. 7,970,674 B2 (the “‘674
`
`Patent”) to Zillow, for an invention entitled “Automatically Determining A Current Value
`
`For A Real Estate Property, Such As A Home, That Is Tailored To Input From A Human
`
`User, Such As Its Owner.”
`
`9.
`
`Trulia runs another real estate information website, Trulia.com, and also
`
`offers mobile real estate applications for smartphones and tablet computers, all of which
`
`compete with Zillow for web traffic and revenue. Up until September 7, 2011, Trulia
`
`offered no automatic home valuation service to users. On that date, Trulia announced that
`
`it too would provide automatic home valuations and that it too would use input from
`
`homeowners to refine those valuations.
`
`10.
`
`Trulia calls its version of Zestimates “Trulia Estimates.” Like Zestimates,
`
`Trulia Estimates provide automatic valuations of properties based on “recent sales of
`
`similar homes and home facts like number of bedrooms and bathrooms, square footage, and
`
`more.” Also like Zestimates and the invention taught by the ‘674 Patent, Trulia Estimates
`
`permit and rely on homeowners to “claim your home” and provide additional information
`
`about their properties to refine the automatic valuations. Trulia states on its website: “Our
`
`estimates also incorporate updates from homeowners who claim their homes and enhance
`
`the profiles for those homes on Trulia.”
`
`COMPLAINT FOR PATENT INFRINGEMENT - Page 3
`
`
`
`
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`Case 2:12-cv-01549-JLR Document 1 Filed 09/12/12 Page 4 of 8
`
`
`
`11.
`
`The invention taught by the ‘674 Patent is a key feature of Trulia Estimates
`
`and it features prominently in Trulia’s own descriptions of the Trulia Estimate feature. For
`
`example, when Trulia describes Trulia Estimates on its website, in the first paragraph it
`
`states: “You can help us improve our accuracy by telling us what you think of your home’s
`
`Estimate, and by claiming your home and updating its facts.” When Trulia launched Trulia
`
`Estimates in beta, Trulia’s Head of Communications wrote on the Trulia website:
`
`Trulia Estimates starts with a number built from local real estate info, including
`prices of recently sold similar homes, and collects inputs from locals – agents,
`buyers and owners – to ultimately improve the estimates in those local areas.
`
`See http://corp.truliablog.com/2011/09/07/whats-it-worth-trulia-estimates-launches-
`
`in-beta/. And when Trulia launched Trulia Estimates nationwide, Trulia’s Head of
`
`Communications wrote solely about the homeowner entering data feature to educate
`
`homeowners about how they could update the Trulia Estimate for their own home. See
`
`http://corp.truliablog.com/tag/home-value/.
`
`12. When Trulia first
`
`launched Trulia Estimates,
`
`it was obvious
`
`to
`
`commentators that Trulia was merely copying Zillow. Commentators accused Trulia of
`
`being a “copycat” of Zillow’s Zestimate service and predicted that Trulia’s copycat version
`
`might “ding” Zillow’s web traffic. Online Marketing Group reported:
`
`Trulia is now jumping on the home valuation bandwagon, launching a beta version
`of what looks like exactly the same thing as a Zestimate, called a “Trulia Estimate,”
`for the San Francisco area. I don’t know if Trulia is envious of Zillow’s successful
`IPO, or if they are just trying to expand the resources on their site, but I wish it
`wasn't by copying Zillow to the letter. At least they are not calling it a “TEstimate.”
`
`See http://www.onlinemarketinggrp.com/blog-entry/trulia-launches-its-own-
`
`zestimate-copycatting-zillow-again.
`
`13.
`
`An independent technology news site called “GeekWire” published an
`
`article about the similarities between the two home valuation services, titled “Trulia takes a
`
`COMPLAINT FOR PATENT INFRINGEMENT - Page 4
`
`
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000
`
`
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`Case 2:12-cv-01549-JLR Document 1 Filed 09/12/12 Page 5 of 8
`
`
`
`swipe at the heart of Zillow, launches its own home valuation tool,” which explained that
`
`Trulia Estimates threatened Zillow because it copied one of the innovations that helped set
`
`Zillow apart from its competitors:
`
`One of the key advantages that Zillow has held over its rivals is the Zestimate. Love
`it or hate it, Zillow’s automated home valuation service has helped snare curious
`users who’ve wondered about the current value of their own home or the
`dilapidated cottage down the street.
`
`See http://www.geekwire.com/2011/trulia-takes-swipe-zillow-launches-home-
`
`valuation-tool/.
`
`14.
`
`Property Portal Watch described Trulia’s new services and then noted: “Of
`
`course, trulia.com competitor zillow.com has been offering its own estimates or
`
`‘Zestimates’ since 2006.”
`
` See http://www.propertyportalwatch.com/2011/09/trulia-
`
`launches-value-estimates/. Mark Wellborn of Urban Turf noticed the similarity between
`
`the home owner update feature of Zestimates and Trulia Estimates on the day Trulia
`
`Estimates launched, stating: “Another interesting aspect of both the Trulia service and the
`
`Zestimate is that users can provide feedback on the home valuations that will affect the
`
`valuation in some way.” See
`
`http://dc.urbanturf.com/articles/blog/value_added_trulia_launches_beta_version_of_home_
`
`valuation_service/4104.
`
`15.
`
`On August 17, 2012, Trulia filed a Form S-1 Registration Statement with
`
`the Securities and Exchange Commission in an attempt to raise up to $75 million. In its S-
`
`1, Trulia highlighted the importance of its solicitation and receipt of homeowner feedback
`
`in refining its automatic home valuations:
`
`Trulia Estimate is our estimate of an off-market property’s value based on our
`proprietary analysis of relevant home data such as recent sales of similar homes and
`property facts. This search function allows users to conduct a precise search by
`street address to find our estimate of the value of that home. Additionally, home
`
`COMPLAINT FOR PATENT INFRINGEMENT - Page 5
`
`
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000
`
`
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`Case 2:12-cv-01549-JLR Document 1 Filed 09/12/12 Page 6 of 8
`
`
`
`owners may claim their home in our database and edit their home’s specific facts
`and details so that our proprietary system can revise its estimated value.
`
`
`(emphasis added).
`
`16.
`
`Trulia’s blatant and ongoing copying of Zillow’s innovative approach to
`
`home valuation infringes Zillow’s patent and Zillow is entitled to damages and an
`
`injunction against further infringement.
`
`
`
`COUNT ONE - INFRINGEMENT OF THE ‘674 PATENT
`
`17.
`
`On June 28, 2011, United States Patent No. 7,970,674 B2 (the ‘674 Patent)
`
`was duly and legally issued for an invention entitled “Automatically Determining A
`
`Current Value For A Real Estate Property, Such As A Home, That Is Tailored To Input
`
`From A Human User, Such As Its Owner.” Zillow was assigned the ‘674 Patent and
`
`continues to hold all rights and interest in the ‘674 Patent. A true and correct copy of the
`
`‘674 Patent is attached as Exhibit A.
`
`18.
`
`Zillow has practiced the ‘674 Patent since 2006 by offering home valuations
`
`to users called “Zestimates,” which are updated by obtaining information from home
`
`owners about their homes.
`
`19.
`
`Trulia has infringed and continues to infringe the ‘674 Patent by its use of,
`
`for example, the Trulia Estimatefeature, and by Trulia’s contributing to the use of, and
`
`inducement of others to use, infringing features and services. Under 35 U.S.C. § 271,
`
`Trulia is liable for its infringement of the ‘674 Patent.
`
`20.
`
`Trulia’s acts of infringement have caused damage to Zillow, and Zillow is
`
`entitled to recover from Trulia the damages sustained by Zillow as a result of Trulia’s
`
`wrongful acts in an amount subject to proof at trial.
`
`COMPLAINT FOR PATENT INFRINGEMENT - Page 6
`
`
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000
`
`
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`Case 2:12-cv-01549-JLR Document 1 Filed 09/12/12 Page 7 of 8
`
`
`
`21.
`
`Zillow and Trulia compete for consumer traffic and advertisers. Trulia’s
`
`infringement of Zillow’s exclusive rights under the ‘674 Patent will continue to damage
`
`Zillow, causing irreparable harm for which there is no adequate remedy at law, unless and
`
`until enjoined by this Court.
`
`JURY DEMAND
`
`Zillow demands a trial by jury.
`
`
`
`PRAYER FOR RELIEF
`
`
`22.
`
`WHEREFORE, Zillow prays for relief against Trulia as follows:
`
`a.
`
`Judgment that Trulia has infringed the ‘674 Patent, contributed to infringement
`
`
`
`of the ‘674 Patent and induced others to infringe the ‘674 Patent;
`
`b.
`
`Judgment that the ‘674 Patent is valid and enforceable;
`
`c. A permanent injunction enjoining Defendant, its respective officers, agents,
`
`servants, employees, and those acting in privity with it, from further infringement of the
`
`‘674 patent;
`
`d. Requiring Defendant to file with this Court, within thirty (30) days after entry
`
`of final judgment, a written statement under oath setting forth in detail the manner in which
`
`it has complied with the injunction;
`
`e. Awarding Zillow damages adequate to compensate for the infringement by
`
`Defendant, but in no event less than a reasonable royalty for the use made of the invention
`
`by Trulia, together with pre-judgment and post-judgment interest and costs under 35 U.S.C.
`
`§ 284;
`
`f. Declaring this case exceptional pursuant to 35 U.S.C. § 285, and awarding
`
`Zillow its attorney fees;
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT - Page 7
`
`
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000
`
`
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`Case 2:12-cv-01549-JLR Document 1 Filed 09/12/12 Page 8 of 8
`
`
`
`g. Costs of court; and
`
`h. Awarding to Zillow such other and further relief, in law or equity, as the Court
`
`deems just.
`
`Dated: September 12, 2012
`
`
`
` 1
`
`
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`/s/ Brooke A. M. Taylor
`Brooke A. M. Taylor, WA Bar No. 33190
`E-Mail: btaylor@susmangodfrey.com
`Jordan Connors, WA Bar No. 41649
`E-Mail: jconnors@susmangodfrey.com
`SUSMAN GODFREY L.L.P.
`1201 Third Ave, Suite 3800
`Seattle, WA 98101
`Telephone: (206) 516-3880
`Facsimile: (206) 516-3883
`
`Counsel for Zillow, Inc.
`
`COMPLAINT FOR PATENT INFRINGEMENT - Page 8
`
`
`Susman Godfrey LLP
`1201 Third Avenue, Suite 3800
`Seattle WA 98101-3000