Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 1 of 9 PageID #: 1
`Case 1:14—cv—0O190—SLR Document 1 Filed 02/12/14 Page 1 of 9 Page|D #: 1
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`IN THE UNITED STATES DISTRICT COURT
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`FOR THE DISTRICT OF DELAWARE
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`SAPPHIRE DOLPHIN LLC,
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`Plaintiff,
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`V.
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`C.A. No.
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`TRIAL BY JURY DEMANDED
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`BEATS ELECTRONICS LLC,
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`Defendant.
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`COMPLAINT FOR PATENT INFRINGEMENT
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`Plaintiff Sapphire Dolphin, LLC (“Sapphire Dolphin”), by and through its undersigned
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`counsel, for its Complaint against Beats Electronics LLC (“Beats” and/or “Defendant”), alleges
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`as follows:
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`NATURE OF THE ACTION
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`1.
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`This is an action for patent infringement arising under the Patent Laws of the
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`United States of America, 35 U.S.C. §§ 1 et seq., including 35 U.S.C. § 271.
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`THE PARTIES
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`2.
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`Plaintiff Sapphire Dolphin is a Delaware limited liability company with a place
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`of business at 222 Delaware Ave, Wilmington, DE 19801.
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`3.
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`On information and belief, Defendant is a Delaware corporation with its principal
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`(cid:83)(cid:79)(cid:68)(cid:70)(cid:72)(cid:3) (cid:82)(cid:73)(cid:3) (cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3) (cid:68)(cid:87)(cid:3) (cid:20)(cid:25)(cid:19)(cid:20)(cid:3) (cid:38)(cid:79)(cid:82)(cid:89)(cid:72)(cid:85)(cid:73)(cid:76)(cid:72)(cid:79)(cid:71)(cid:3) (cid:37)(cid:79)(cid:89)(cid:71)(cid:15)(cid:3) (cid:54)(cid:88)(cid:76)(cid:87)(cid:72)(cid:3) (cid:24)(cid:19)(cid:19)(cid:19)(cid:49)(cid:15)(cid:3) (cid:54)(cid:68)(cid:81)(cid:87)(cid:68)(cid:3) (cid:48)(cid:82)(cid:81)(cid:76)(cid:70)(cid:68)(cid:15)(cid:3) (cid:38)(cid:68)(cid:79)(cid:76)(cid:73)(cid:82)(cid:85)(cid:81)(cid:76)(cid:68)(cid:3) (cid:28)(cid:19)(cid:23)(cid:19)(cid:23)(cid:17)(cid:3)(cid:3)
`place of business at 1601 Cloverfield Blvd, Suite 5000N, Santa Monica, California 90404.
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`Defendant can be served via its registered agent, Registered Agent Solutions, Inc., 1679 S.
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`DuPoint Highway, Suite 100, Dover, Delaware 19901.
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`4.
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`Defendant is in the business of making, using, selling, offering for sale and/or
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`(cid:76)(cid:80)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:83)(cid:72)(cid:68)(cid:78)(cid:72)(cid:85)(cid:3)(cid:71)(cid:72)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:72)(cid:86)(cid:87)(cid:68)(cid:69)(cid:79)(cid:76)(cid:86)(cid:75)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:88)(cid:81)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:68)(cid:3)(cid:37)(cid:79)(cid:88)(cid:72)(cid:87)(cid:82)(cid:82)(cid:87)(cid:75)(cid:3)(cid:81)(cid:72)(cid:87)(cid:90)(cid:82)(cid:85)(cid:78)(cid:3)(cid:89)(cid:76)(cid:68)(cid:3)(cid:49)(cid:41)(cid:38)(cid:17)(cid:3)
`importing speaker devices that establish communications over a Bluetooth network via NFC.
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`Exh. 1023
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`(cid:44)(cid:51)(cid:53)(cid:21)(cid:19)(cid:20)(cid:24)(cid:16)(cid:19)(cid:19)(cid:23)(cid:20)(cid:21)
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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 2 of 9 PageID #: 2
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` JURISDICTION AND VENUE
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`5.
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`This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C.
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`§§ 1331 and 1338(a) because the action arises under the patent laws of the United States, 35
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`U.S.C. §§ 1 et seq.
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`6.
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`This Court has personal jurisdiction over Defendant by virtue of its systematic
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`and continuous contacts with this jurisdiction, as well as because of the injury to Sapphire
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`Dolphin and the cause of action Sapphire Dolphin has raised, as alleged herein.
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`7.
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`Defendant is subject to this Court’s specific and general personal jurisdiction
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`pursuant to due process and/or the Delaware Long-Arm Statute, Del Code. Ann. Tit. 3, § 3104,
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`due to at least its substantial business in this forum, including: (i) at least a portion of the
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`infringement alleged herein; and (ii) regularly doing or soliciting business, engaging in other
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`persistent courses of conduct, and/or deriving substantial revenue from goods and services
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`provided to individuals in Delaware.
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`8.
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`Defendant has conducted and does conduct business within the state of Delaware,
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`directly or through intermediaries, resellers, agents, or offers for sale, sells, and/or advertises
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`products in Delaware that infringe the Asserted Patents (as defined below).
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`9.
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`In addition to Defendant’s continuously and systematically conducting business
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`in Delaware, the causes of action against Defendant are connected (but not limited) to
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`Defendant’s purposeful acts committed in the state of Delaware, including Defendant’s making,
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`using, importing, offering for sale, or selling products which include features that fall within the
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`scope of at least one claim of the Asserted Patents.
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`10.
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`Venue lies in this District under 28 U.S.C. §§ 1391 and 1400(b) because, among
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`other reasons, Defendant is subject to personal jurisdiction in this District, and has committed
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`2
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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 3 of 9 PageID #: 3
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`and continues to commit acts of patent infringement in this District. For example, Defendant
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`has used, sold, offered for sale, and/or imported infringing products in this District.
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`THE PATENTS-IN-SUIT
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`11.
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`There are two patents at issue in this action: United States Patent Nos. 6,094,676
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`(the “’676 Patent”) and 6,219,710 (the “’710 Patent”) (collectively, the “Asserted Patents”).
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`12.
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`On July 25, 2000, the United States Patent and Trademark Office (“USPTO”)
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`duly and legally issued the ’676 Patent, entitled “Method and Apparatus for Peer-To-Peer
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`Communication” after a full and fair examination. Sapphire Dolphin is presently the owner of
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`the patent and possesses all right, title and interest in and to the ’676 Patent. Sapphire Dolphin
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`owns all rights of recovery under the ’676 Patent, including the exclusive right to recover for
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`past infringement. The ’676 Patent is valid and enforceable. A copy of the ’676 Patent is
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`attached hereto as Exhibit A.
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`13.
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`On April 17, 2001, the USPTO duly and legally issued the ’710 Patent, entitled
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`“Method and Apparatus for Peer-To-Peer Communication” after a full and fair examination.
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`Sapphire Dolphin is presently the owner of the patent and possesses all right, title and interest in
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`and to the ’710 Patent. Sapphire Dolphin owns all rights of recovery under the ’710 Patent,
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`including the exclusive right to recover for past infringement. The ’710 Patent is valid and
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`enforceable. A copy of the ’710 Patent is attached hereto as Exhibit B.
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`14.
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`The ’676 Patent contains three independent claims and sixteen dependent claims.
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`Defendant commercializes, inter alia, devices which include all of the elements recited in one or
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`more claims of the ’676 Patent.
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`3
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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 4 of 9 PageID #: 4
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`15.
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`The ’710 Patent contains four independent claims and twenty-one dependent
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`claims. Defendant commercializes, inter alia, methods that perform all the steps recited in one
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`or more claims of the ’710 Patent.
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`DESCRIPTION OF THE ACCUSED INSTRUMENTALITIES
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`16.
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`Defendant’s Accused Products, such as Beats’ “Pill” speaker device, establish a
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`communication between two devices over a network channel after exchanging messages that
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`provide information that one or both of the communicating devices use to determine the network
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`address of the other over a monitor channel.
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`17.
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`For example, Beats’ “Pill” speaker device establishes communication with an
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`Audio Source device (such as a smartphone) over a Bluetooth network when the Audio Source
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`device is placed very near or tapped against the Beats’ “Pill” near-field communication (NFC)
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`subsystem. The apparatus, accordingly, communicates using a near-field communication (NFC)
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`channel and a Bluetooth channel. In addition, a user of said apparatus also performs at least one
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`method of the Asserted Patents.
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`18.
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`Accordingly, a user, such as a customer or an employee, performs at least one
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`method and/or uses at least one apparatus claimed in the Asserted Patents by pairing an Audio
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`Source device with the Accused Products using near-field communication (NFC).
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`COUNT I:
`INFRINGEMENT OF THE ’676 PATENT
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` Plaintiff re-alleges and incorporates by reference the allegations set forth in
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`19.
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`paragraphs 1-18.
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`20.
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`Defendant directly infringes one or more claims of the ’676 Patent by using an
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`apparatus and method as described above. For example, without limitation, Defendant directly
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`4
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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 5 of 9 PageID #: 5
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`
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`infringes the ’676 Patent by using the Accused Products, including use by Defendant’s
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`employees and agents, and use during product development and testing processes.
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`21.
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`Defendant has had knowledge of infringement of the ’676 Patent at least as of the
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`service of the present complaint.
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`22.
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`Defendant has indirectly infringed and continues to indirectly infringe the ’676
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`Patent by actively inducing its customers, users, and/or licensees to directly infringe by using
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`the Accused Products as described above. Defendant has engaged or will have engaged in such
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`inducement having knowledge of the ’676 Patent. Furthermore, Defendant knew or should have
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`known that its actions would induce direct infringement by others and intended that its actions
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`would induce direct infringement by others. For example, Defendant sells, offers for sale and
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`advertises the Accused Products in Delaware specifically intending that its customers buy and
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`use them in an infringing manner. As a direct and proximate result of Defendant’s indirect
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`infringement by inducement of the ’676 Patent, Plaintiff has been and continues to be damaged.
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`23.
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`Defendant has contributorily infringed and continues to contributorily infringe
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`the ’676 Patent by selling and/or offering to sell the Accused Products, whose infringing
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`features are not a staple article of commerce and when used by a third-party, such as a customer,
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`can only be used in a way that infringes the ’676 Patent. Defendant has done this with
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`knowledge of the ’676 Patent and knowledge that the Accused Products constitute a material
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`part of the invention claimed in the ’676 Patent. Defendant engaged or will have engaged in
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`such contributory infringement having knowledge of the ’676 Patent. As a direct and proximate
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`result of Defendant’s contributory infringement of the ’676 Patent, Plaintiff has been and
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`continues to be damaged.
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`5
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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 6 of 9 PageID #: 6
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`24.
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`By engaging in the conduct described herein, Defendant has injured Sapphire
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`Dolphin and is thus liable for infringement of the ’676 Patent, pursuant to 35 U.S.C. § 271.
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`25.
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`Defendant has committed these acts of infringement without license or
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`authorization.
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`26.
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`To the extent that facts learned in discovery show that Defendant’s infringement
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`of the ’676 Patent is or has been willful, Sapphire Dolphin reserves the right to request such a
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`finding at the time of trial.
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`27.
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`As a result of Defendant’s infringement of the ’676 Patent, Sapphire Dolphin has
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`suffered harm and monetary damages and is entitled to a monetary judgment in an amount
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`adequate to compensate for Defendant’s past infringement, together with interests and costs.
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`28.
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`Sapphire Dolphin will continue to suffer harm and damages in the future unless
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`Defendant’s infringing activities are enjoined by this Court. As such, Sapphire Dolphin is
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`entitled to compensation for any continuing or future infringement up until the date that
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`Defendant is finally and permanently enjoined from further infringement.
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`COUNT II:
`INFRINGEMENT OF THE ’710 PATENT
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` Plaintiff re-alleges and incorporates by reference the allegations set forth in
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`29.
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`paragraphs 1-28.
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`30.
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`Defendant directly infringes one or more claims of the ’710 Patent by using an
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`apparatus and method as described above. For example, without limitation, Defendant directly
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`infringes the ’710 Patent by using the Accused Products, including use by Defendant’s
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`employees and agents, and use during product development and testing processes.
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`31.
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`Defendant has had knowledge of infringement of the ’710 Patent at least as of the
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`service of the present complaint.
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`6
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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 7 of 9 PageID #: 7
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`32.
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`Defendant has indirectly infringed and continues to indirectly infringe the ’710
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`Patent by actively inducing its customers, users, and/or licensees to directly infringe by using
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`the Accused Products as described above. Defendant has engaged or will have engaged in such
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`inducement having knowledge of the ’710 Patent. Furthermore, Defendant knew or should have
`
`known that its actions would induce direct infringement by others and intended that its actions
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`would induce direct infringement by others. For example, Defendant sells, offers for sale and
`
`advertises the Accused Products in Delaware specifically intending that its customers buy and
`
`use them in an infringing manner. As a direct and proximate result of Defendant’s indirect
`
`infringement by inducement of the ’710 Patent, Plaintiff has been and continues to be damaged.
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`33.
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`Defendant has contributorily infringed and continues to contributorily infringe
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`the ’710 Patent by selling and/or offering to sell the Accused Products, whose infringing
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`features are not a staple article of commerce and when used by a third-party, such as a customer,
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`can only be used in a way that infringes the ’710 Patent. Defendant has done this with
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`knowledge of the ’710 Patent and knowledge that the Accused Products constitutes a material
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`part of the invention claimed in the ’710 Patent. Defendant engaged or will have engaged in
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`such contributory infringement having knowledge of the ’710 Patent. As a direct and proximate
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`result of Defendant’s contributory infringement of the ’710 Patent, Plaintiff has been and
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`continues to be damaged
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`34.
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`By engaging in the conduct described herein, Defendant has injured Sapphire
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`Dolphin and is thus liable for infringement of the ’710 Patent, pursuant to 35 U.S.C. § 271.
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`35.
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`Defendant has committed these acts of infringement without license or
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`authorization.
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`7
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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 8 of 9 PageID #: 8
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`36.
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`To the extent that facts learned in discovery show that Defendant’s infringement
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`of the ’710 Patent is or has been willful, Sapphire Dolphin reserves the right to request such a
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`finding at the time of trial.
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`37.
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`As a result of Defendant’s infringement of the ’710 Patent, Sapphire Dolphin has
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`suffered harm and monetary damages and is entitled to a monetary judgment in an amount
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`adequate to compensate for Defendant’s past infringement, together with interests and costs.
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`38.
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`Sapphire Dolphin will continue to suffer harm and damages in the future unless
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`Defendant’s infringing activities are enjoined by this Court. As such, Sapphire Dolphin is
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`entitled to compensation for any continuing or future infringement up until the date that
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`Defendant is finally and permanently enjoined from further infringement.
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`DEMAND FOR JURY TRIAL
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`39.
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`Sapphire Dolphin demands a trial by jury of any and all causes of action.
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`
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`Sapphire Dolphin respectfully prays for the following relief:
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`PRAYER FOR RELIEF
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`A.
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`That Defendant be adjudged to have infringed the Asserted Patents;
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`B.
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`That Defendant, its officers, directors, agents, servants, employees, attorneys,
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`affiliates, divisions, branches, parents, and those persons in active concert or participation with
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`any of them, be permanently restrained and enjoined from directly and/or indirectly infringing
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`the Asserted Patents;
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`C.
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`An award of damages pursuant to 35 U.S.C. § 284 sufficient to compensate
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`Sapphire Dolphin for Defendant’s past infringement and any continuing and/or future
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`infringement up until the date that Defendant is finally and permanently enjoined from further
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`infringement, including compensatory damages;
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`8
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`

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`Case 1:14-cv-00190-SLR Document 1 Filed 02/12/14 Page 9 of 9 PageID #: 9
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`D.
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`An assessment of pre-judgment and post-judgment interests and costs against
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`Defendant, together with an award of such interests and costs, in accordance with 35 U.S.C. §
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`284;
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`E.
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`That Defendant be directed to pay enhanced damages, including Sapphire
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`Dolphin’s attorneys’ fees incurred in connection with this lawsuit pursuant to 35 U.S.C. § 285;
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`and
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`F.
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`That Sapphire Dolphin be given such other and further relief as this Court may
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`
`
`BAYARD, P.A.
`
`/s/ Stephen B. Brauerman
`Richard D. Kirk (rk0922)
`Stephen B. Brauerman (sb4952)
`Vanessa R. Tiradentes (vt5398)
`Sara E. Bussiere (sb5725)
`222 Delaware Avenue, Suite 900
`Wilmington, DE 19801
`302-655-5000
`rkirk@bayardlaw.com
`sbrauerman@bayardlaw.com
`vitradentes@bayardlaw.com
`sbussiere@bayardlaw.com
`
`Attorneys for Plaintiff Sapphire Dolphin, LLC
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`
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`
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`9
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`deem just and proper.
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`Dated: February 12, 2014
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`OF COUNSEL:
`
`Eugenio Torres Oyola
`FERRAIUOLI LLC
`221 Plaza 5th Floor
`221 Ponce de León Ave.
`San Juan, Puerto Rico 00917
`(787) 766-7000
`etorres@ferraiuoli.com