Case 2:13-cv-00757-JRG Document 1 Filed 09/23/13 Page 1 of 6 PageID #: 1
`
`UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`MARSHALL DIVISON
`
`
`
`
`
`
`Civil Action No. 2:13-CV-757
`
`JURY TRIAL DEMANDED
`
`Babbage Holdings, LLC,
`
` Plaintiff,
`
` v.
`
`Sony Computer Entertainment America
`LLC and Sony Corporation of America,
`
` Defendants.
`
`
`
`COMPLAINT
`
`
`
`Babbage Holdings, LLC (“Babbage”) files this Complaint against Sony Computer Enter-
`
`tainment America LLC and Sony Corporation of America (collectively, “Defendants”), and al-
`
`leges as follows: 
`
`PARTIES
`
`1.
`
`Babbage is a limited liability company existing under the laws of the State of
`
`Texas, with its principal place of business at 3100 Independence Pkwy, Suite 311, Plano, Texas.
`
`2.
`
`Defendant Sony Computer Entertainment America LLC is a Delaware corpora-
`
`tion with its principal place of business at San Mateo, California. Defendant Sony Corporation of
`
`America is a Delaware corporation with its principal place of business at San Mateo, California.
`
`JURISDICTION AND VENUE
`
`3.
`
`This Court has jurisdiction because this is a patent infringement case arising under
`
`the patent laws of the United States Code, Title 35. This Court has exclusive subject matter juris-
`
`diction over this case under 28 U.S.C. § 1338(a).
`
` 
`
`1
`
` 
`
`Petitioners Ex. 1015 Page 1
`
`

`

`Case 2:13-cv-00757-JRG Document 1 Filed 09/23/13 Page 2 of 6 PageID #: 2
`
`4.
`
`This Court has personal jurisdiction over Defendants. Defendants have conducted
`
`and do conduct business within the State of Texas. Defendants, directly or through subsidiaries
`
`or intermediaries, offer for sale, use, make, distribute, sell, advertise, and market accused video
`
`games in the State of Texas, and the Eastern District of Texas. Defendants have voluntarily sold
`
`accused products in this District, either directly to customers in this District or through interme-
`
`diaries with the expectation that accused video games will be sold and distributed to customers in
`
`this District. These accused video games have been and continue to be purchased and used by
`
`consumers in the Eastern District of Texas. Defendants have committed acts of infringement
`
`within the State of Texas and, more particularly, within the Eastern District of Texas.
`
`5.
`
`Venue is proper in the Eastern District of Texas under 28 U.S.C. §§ 1391(b)-(c)
`
`and 1400(b).
`
`6.
`
`herein.
`
`COUNT I
`(PATENT INFRINGEMENT)
`
`Babbage incorporates the foregoing paragraphs by reference as if fully set forth
`
`7.
`
`United States Patent No. 5,561,811 (the “’811 patent”), entitled “Method and Ap-
`
`paratus for Per-User Customization of Applications Shared By A Plurality of Users On A Single
`
`Display,” was duly and legally issued by the United States Patent and Trademark Office on Sep-
`
`tember 10, 1996, after a full and fair examination. A copy of the ’811 patent is attached hereto as
`
`Exhibit A. The ’811 patent relates to, among other things, a method and apparatus for entering
`
`simultaneous and sequential input events for at least one application program under the control
`
`of multiple users of a computer system.
`
`8.
`
`Babbage is the assignee of all rights, title, and interest in and to the ’811 patent
`
`and possesses all rights of recovery under the ’811 patent.
`
` 
`
`2
`
` 
`
`Petitioners Ex. 1015 Page 2
`
`

`

`Case 2:13-cv-00757-JRG Document 1 Filed 09/23/13 Page 3 of 6 PageID #: 3
`
`9.
`
`Defendants are infringing the ’811 patent under 35 U.S.C. § 271 by performing,
`
`without authority, one or more of the following acts: (a) making, using, offering to sell, and sell-
`
`ing within the United States video games that practice the inventions of the ’811 patent; (b) con-
`
`tributing to the infringement of the ’811 patent by others in the United States; and/or (c) inducing
`
`others to infringe the ’811 patent within the United States.
`
`10.
`
`For example, Defendants sell, offer for sale, and/or use at least Gran Turismo 5,
`
`thereby infringing at least claim 7 of the ’811 patent. Defendants induce the use of Gran Turismo
`
`5 by others, such as their customers, who also directly infringe the ’811 patent. Defendants have
`
`actively and knowingly aided and abetted that direct infringement. Defendants actually intended
`
`to cause the acts that constitute direct infringement, know of the ’811 patent at least as early as
`
`November 21, 2012, and knew their actions would lead to actual infringement and/or was reck-
`
`lessly indifferent with respect thereto. Further, Defendants sold, offered for sale, and/or imported
`
`a material component of the patented invention that is not a staple article of commerce capable of
`
`substantial non-infringing use, with knowledge of the ’811 patent, and knowledge that the com-
`
`ponent was especially made or adapted for use in an infringing manner.
`
`11.
`
`Upon information and belief, Defendants’ infringement is willful. Among other
`
`things, following notice of the ’811 patent, Defendants have acted and/or will act despite an ob-
`
`jectively high likelihood that their action infringe a valid patent, and this objectively high likeli-
`
`hood of infringement was either known or so obvious that it should have been known to Defend-
`
`ants. The totality of the circumstances also indicate that Defendants’ infringement of the ’811
`
`patent is willful. For example, there is no evidence that Defendants sought or relied on any legal
`
`advice, much less competent legal advice, with respect to their infringement of the ’811 patent,
`
`and Defendants have not presented any substantial defense to their infringement. Furthermore,
`
` 
`
`3
`
` 
`
`Petitioners Ex. 1015 Page 3
`
`

`

`Case 2:13-cv-00757-JRG Document 1 Filed 09/23/13 Page 4 of 6 PageID #: 4
`
`Defendants have no reasonable basis for believing that they have not infringed the ’811 patent or
`
`that the ’811 patent was invalid or unenforceable. There is no evidence that Defendants took re-
`
`medial action upon learning of the ’811 patent by ceasing its infringing activity or by attempting
`
`to design around the ’811 patent.
`
`12.
`
`Babbage hereby demands a trial by jury on all issues so triable.
`
`JURY DEMAND
`
`PRAYER FOR RELIEF
`
`13.
`
`Babbage requests the following relief:
`
`A.
`
`A judgment that Defendants have directly infringed the ’811 patent, con-
`
`tributorily infringed the ’811 patent, and induced infringement of the ’811
`
`patent, and that such infringement is and has been willful;
`
`B.
`
`An injunction preventing Defendants and their officers, directors, agents,
`
`servants, employees, attorneys, licensees, successors, and assigns, and
`
`those in active concert or participation with any of them, from directly in-
`
`fringing, contributorily infringing, and inducing the infringement of the
`
`’811 patent;
`
`C.
`
`A judgment and order requiring Defendants to pay Baggage’s damages
`
`under 35 U.S.C. § 284, including supplemental damages for any continu-
`
`ing post-verdict infringement up until entry of the final judgment, with an
`
`accounting, as needed, and treble damages for willful infringement as pro-
`
`vided by 35 U.S.C. § 284;
`
`D.
`
`A judgment and order requiring Defendants to pay Babbage’s prejudg-
`
`ment and post-judgment interest on the damages awarded;
`
`E.
`
`A judgment and order requiring Defendants to pay Babbage the costs of
`
` 
`
`4
`
` 
`
`Petitioners Ex. 1015 Page 4
`
`

`

`Case 2:13-cv-00757-JRG Document 1 Filed 09/23/13 Page 5 of 6 PageID #: 5
`
`this action (including all disbursements) and attorney’s fees as provided by
`
`35 U.S.C. § 285; and
`
`F.
`
`Such other and further relief as the Court deems just and equitable.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` 
` 
`
`
` 
`
` 
`
`
`
` 
`
`5
`
` 
`
`Petitioners Ex. 1015 Page 5
`
`

`

`Case 2:13-cv-00757-JRG Document 1 Filed 09/23/13 Page 6 of 6 PageID #: 6
`
`Dated: September 23, 2013
`
`
`
`
`
`
`
`
`
`
`
`
`
` 
`
` 
`
` 
`
` 
`
` 
`
`Respectfully submitted,
`
` /s Anthony M. Garza .
`ANTHONY M. GARZA, LEAD ATTORNEY
` Texas State Bar No. 24050644
` agarza@ccrglaw.com
`STEVEN CALLAHAN
` Texas State Bar No. 24053122
` scallahan@ccrglaw.com
`CHARHON CALLAHAN
`ROBSON & GARZA, PLLC
`3333 Lee Parkway, Suite 460
`Dallas, Texas 75219
`Telephone: (214) 521-6400
`Telecopier: (214) 764-8392
`
`Counsel for Babbage Holdings, LLC
`
`6
`
` 
`
`Petitioners Ex. 1015 Page 6
`
`