`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TYLER DIVISION
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`VirnetX Inc.,
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`Plaintiff,
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`vs.
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`Microsoft Corporation,
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`Defendant.
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`Civil Action No. 6:10-cv-94
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`§§§§§§§§§
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`PLAINTIFF VIRNETX INC.’S ORIGINAL COMPLAINT
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`Plaintiff VirnetX Inc. (“VirnetX”) files this complaint against Defendant Microsoft Corp.
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`(“Microsoft”) for patent infringement of U.S. Patent Nos. 6,502,135 and 7,188,180, under 35
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`U.S.C. § 271, and in support thereof would respectfully show the Court the following:
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`THE PARTIES
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`1.
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`Plaintiff VirnetX is a corporation organized and existing under the laws of the
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`State of Delaware, and maintains its principal place of business at 5615 Scotts Valley Drive,
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`Suite 110 Scotts Valley, California.
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`2.
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`Defendant Microsoft Corp. is a Washington corporation with its principal place
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`of business at One Microsoft Way, Redmond, Washington 98052. On information and belief,
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`Microsoft regularly conducts and transacts business in Texas, throughout the United States,
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`and within the Eastern District of Texas, and as set forth below, has committed and continues
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`to commit, tortious acts of patent infringement within and outside of Texas and within the
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`Eastern District of Texas.
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`Page 1 of 7
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`VIRNETX EXHIBIT 2013
`Microsoft v. VirnetX
`Trial IPR2014-00558
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`Case 6:10-cv-00094-LED Document 1 Filed 03/17/10 Page 2 of 7 PageID #: 2
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`JURISDICTION AND VENUE
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`3.
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`This is an action for patent infringement arising under the patent laws of the
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`United States, Title 35, United States Code. This Court has exclusive subject matter
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`jurisdiction over this case for patent infringement under 28 U.S.C. § 1338.
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`4.
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`Venue is proper in the Eastern District of Texas under 28 U.S.C. §§ 1391 and
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`1400(b).
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`5.
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`This Court has personal jurisdiction over Microsoft. Microsoft has conducted
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`and does conduct business within the State of Texas. Microsoft, directly or through
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`subsidiaries or intermediaries (including distributors, retailers, and others), ships, distributes,
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`offers for sale, sells, and advertises (including the provision of an interactive web page) its
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`products and/or services in the United States, the State of Texas, and the Eastern District of
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`Texas. Microsoft, directly and through subsidiaries or intermediaries (including distributors,
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`retailers, and others), has purposefully and voluntarily placed one or more of its infringing
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`products and/or services, as described below, into the stream of commerce with the expectation
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`that they will be purchased and used by consumers in the Eastern District of Texas. These
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`infringing products and/or services have been and continue to be purchased and used by
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`consumers in the Eastern District of Texas. Microsoft has committed acts of patent
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`infringement within the State of Texas and, more particularly, within the Eastern District of
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`Texas.
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`COUNT ONE
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`PATENT INFRINGEMENT
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`6.
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`VirnetX incorporates by reference paragraphs 1-5 as if fully set forth herein.
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`Case 6:10-cv-00094-LED Document 1 Filed 03/17/10 Page 3 of 7 PageID #: 3
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`7.
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`On December 31, 2002, United States Patent No. 6,502,135 (“the ’135 patent”)
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`entitled “Agile Network Protocol for Secure Communications with Assured System
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`Availability” was duly and legally issued with Edmund Colby Munger, Douglas Charles
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`Schmidt, Robert Dunham Short, III, Victor Larson, Michael Williamson as the named
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`inventors after full and fair examination. VirnetX is the owner of all rights, title, and interest in
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`and to the ’135 patent and possesses all rights of recovery under the ’135 patent. A copy of the
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`’135 patent is attached as Exhibit A.
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`8.
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`Microsoft is infringing the ’135 patent under 35 U.S.C. § 271 by performing,
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`without authority, one or more of the following acts: (a) making, using, offering to sell, and
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`selling within the United States products and services (including, but not limited to Windows 7
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`and Windows Server 2008 R2) that practice the inventions of the ’135 patent; (b) importing
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`into the United States the inventions of the ’135 patent; (c) on information and belief,
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`contributing to the infringement of the ’135 patent by others in the United States; and/or (d) on
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`information and belief, inducing others to infringe the ’135 patent within the United States.
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`9.
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`Microsoft’s acts of infringement have caused damage to VirnetX. VirnetX is
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`entitled to recover from Microsoft the damages sustained by VirnetX as a result of Microsoft’s
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`wrongful acts in an amount subject to proof at trial. Microsoft’s infringement of VirnetX’s
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`rights under the ’135 patent will continue to damage VirnetX’s business, causing irreparable
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`harm, for which there is no adequate remedy of law, unless enjoined by this Court.
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`10. Microsoft’s has willfully infringed and/or does willfully infringe the ’135
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`patent.
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`11.
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`Plaintiff has complied with 35 U.S.C. § 287.
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`Case 6:10-cv-00094-LED Document 1 Filed 03/17/10 Page 4 of 7 PageID #: 4
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`COUNT TWO
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`PATENT INFRINGEMENT
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`12.
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`13.
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`VirnetX incorporates by reference paragraphs 1- 11 as if fully set forth herein.
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`On March 6, 2007, United States Patent No. 7,188,180 (“the ’180 patent”)
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`entitled “Method for Establishing Secure Communication Link Between Computers of Virtual
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`Private Network” was duly and legally issued with Edmund Colby Munger, Robert Dunham
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`Short, III, Victor Larson, Michael Williamson as the named inventors after full and fair
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`examination. VirnetX is the owner of all rights, title, and interest in and to the ’180 patent and
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`possesses all rights of recovery under the ’180 patent. A copy of the ’180 patent is attached as
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`Exhibit B.
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`14. Microsoft is infringing the ’180 patent under 35 U.S.C. § 271 by performing,
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`without authority, one or more of the following acts: (a) making, using, offering to sell, and
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`selling within the United States products and services (including, but not limited to Windows 7
`
`and Windows Server 2008 R2) that practice the inventions of the ’180 patent; (b) importing
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`into the United States the inventions of the ’180 patent; (c) on information and belief,
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`contributing to the infringement of the ’180 patent by others in the United States; and/or (d) on
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`information and belief, inducing others to infringe the ’180 patent within the United States.
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`15. Microsoft’s acts of infringement have caused damage to VirnetX. VirnetX is
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`entitled to recover from Microsoft the damages sustained by VirnetX as a result of Microsoft’s
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`wrongful acts in an amount subject to proof at trial. Microsoft’s infringement of VirnetX’s
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`rights under the ’180 patent will continue to damage VirnetX’s business, causing irreparable
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`harm, for which there is no adequate remedy of law, unless enjoined by this Court.
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`16. Microsoft’s has willfully infringed and/or does willfully infringe the ’180
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`patent.
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`17.
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`Plaintiff has complied with 35 U.S.C. § 287.
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`DEMAND FOR JURY TRIAL
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`VirnetX hereby demands a jury for all issues so triable.
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`PRAYER FOR RELIEF
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`WHEREFORE, VirnetX prays for the following relief:
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`1.
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`A judgment that Microsoft has directly infringed the ’135 and ’180 patents,
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`contributorily infringed the ’135 and ’180 patents, and/or induced the infringement of the ’135
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`and ’180 patents;
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`2.
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`A preliminary and permanent injunction preventing Microsoft and its officers,
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`directors, agents, servants, employees, attorneys, licensees, successors, and assigns, and those
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`in active concert or participation with any of them, from directly infringing, contributorily
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`infringing, and/or inducing the infringement of the ’135 and ’180 patents;
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`3.
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`A judgment that Microsoft’s infringement of the ’135 and ’180 patents has been
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`willful;
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`4.
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`This case be found an exceptional case, entitling VirnetX to attorneys’ fees
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`incurred in prosecuting this action;
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`5.
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`A judgment and order requiring Microsoft to pay VirnetX damages under 35
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`U.S.C. § 284, including supplemental damages for any continuing post-verdict infringement up
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`Case 6:10-cv-00094-LED Document 1 Filed 03/17/10 Page 6 of 7 PageID #: 6
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`until entry of the final judgment, with an accounting, as needed, and treble damages for willful
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`infringement as provided by 35 U.S.C. § 284;
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`6.
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`A judgment and order requiring Microsoft to pay VirnetX the costs of this
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`action (including all disbursements);
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`7.
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`A judgment and order requiring Microsoft to pay VirnetX pre-judgment and
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`post-judgment interest on the damages awarded;
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`8.
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`A judgment and order requiring that in the event a permanent injunction
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`preventing future acts of infringement is not granted, that VirnetX be awarded a compulsory
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`ongoing licensing fee; and
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`9.
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`Such other and further relief as the Court may deem just and proper.
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`Case 6:10-cv-00094-LED Document 1 Filed 03/17/10 Page 7 of 7 PageID #: 7
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`DATED: March 17, 2010
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` Respectfully submitted,
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`
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`McKOOL SMITH, P.C.
`
`
`/s/ Douglas A. Cawley
`Douglas A. Cawley, Lead Attorney
`Texas State Bar No. 04035500
`E-mail: dcawley@mckoolsmith.com
`Luke F. McLeroy
`Texas State Bar No. 24041455
`E-mail: lmcleroy@mckoolsmith.com
`Bradley W. Caldwell
`Texas State Bar No. 24040630
`E-mail: bcaldwell@mckoolsmith.com
`Jason D. Cassady
`Texas State Bar No. 24045625
`E-mail: jcassady@mckoolsmith.com
`J. Austin Curry
`Texas State Bar No. 24059636
`E-mail: acurry@mckoolsmith.com
`MCKOOL SMITH P.C.
`300 Crescent Court, Suite 1500
`Dallas, Texas 75201
`Telephone: (214) 978-4000
`Telecopier: (214) 978-4044
`
`Sam F. Baxter
`Texas State Bar No. 01938000
`E-mail: sbaxter@mckoolsmith.com
`MCKOOL SMITH P.C.
`104 East Houston, Suite 300
`Marshall, Texas 75670
`Telephone: (903) 923-9000
`Telecopier: (903) 923-9099
`
`
`ATTORNEYS FOR PLAINTIFF
`VIRNETX, INC.
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`Dallas 297838v2
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