`
`UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF ILLINOIS
`Eastern Division
`
`Civil Action No.
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`
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`JURY TRIAL DEMANDED
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`
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`QURIO HOLDINGS, INC.,
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`
`
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`
`
`Plaintiff,
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`v.
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`DISH NETWORK CORPORATION, and
`DISH NETWORK, LLC,
`
`
`
`
`
`Defendants.
`
`
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff, Qurio Holdings, Inc. (“Qurio”), alleges the following for its complaint of patent
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`
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`
`
`
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`
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`infringement against Dish Network Corporation and Dish Network, LLC (hereinafter Dish or
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`“Defendants”).
`
`NATURE OF THE ACTION
`
`This is an action for patent infringement of (1) United States Patent No. 8,102,863
`
`entitled “Highspeed WAN To Wireless LAN Gateway” (“the 863 Patent”) and (2) United States
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`Patent No. 7,787,904 entitled “Personal Area Network Having Media Player And Mobile Device
`
`Controlling The Same” (“the 904 Patent”), under the Patent Laws of the United States, 35 U.S.C.
`
`§ 1, et seq., and seeking damages and injunctive and other relief under 35 U.S.C. § 281, et seq.
`
`DISH, Exh. 1009, p. 1
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 2 of 12 PageID #:2
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`
`
`THE PARTIES
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`1.
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`Plaintiff Qurio is a Delaware corporation with a principal place of business at 20
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`Depot Street, Suite 2A, Peterborough, New Hampshire 03458-1453. Qurio is a technology
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`company that develops technological solutions for network communications, telephony, and
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`media delivery and distribution, including images, video and music.
`
`2.
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`On information and belief, Defendant Dish Network Corporation is a Colorado-
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`based corporation organized and existing under the laws of the State of Nevada, with its principal
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`place of business at 9601 South Meridian Boulevard, Englewood, Colorado 80112.
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`3.
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`On information and belief, Defendant Dish Network LLC is a Colorado-based
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`corporation, with its principal place of business at 9601 S. Meridian Blvd., Englewood, CO
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`80112, and is a wholly-owned subsidiary of Defendant Dish Network Corporation.
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`JURISDICTION AND VENUE
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`4.
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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 of the United States Code.
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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 concerns the infringement of United States patents.
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`6.
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`Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391 and 1400(b)
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`because, among other reasons, Defendants have transacted business in the State of Illinois and
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`Defendants have committed and continue to commit acts of patent infringement in Illinois, and
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`Defendants have regular and established places of business in this Judicial District.
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`7.
`
`Upon information and belief, this Court has personal jurisdiction over each
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`Defendant at least because each transacts substantial business in the State of Illinois, directly or
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`
`
`2
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`DISH, Exh. 1009, p. 2
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 3 of 12 PageID #:3
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`through intermediaries, including: (i) at least a portion of the infringements alleged herein, and
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`(ii) regularly doing or soliciting business in Illinois, engaging in other persistent courses of
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`conduct, maintaining continuous and systematic contacts in Illinois, purposefully availing itself
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`of the privileges of doing business in Illinois, and/or deriving substantial revenue from goods and
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`services provided to individuals in Illinois.
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`THE PATENTS-IN-SUIT
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`8.
`
`Plaintiff Qurio is and has been at all relevant times the owner by assignment of
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`the 863 Patent, entitled “High-Speed WAN To Wireless WLAN Gateway,” which the United
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`States Patent and Trademark Office duly issued on January 24, 2012. A true and correct copy of
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`the 863 Patent is attached hereto as Exhibit A.
`
`9.
`
`The inventions of the 863 Patent are applicable to, among other things, providing
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`communication between a high-speed wide-area network (“WAN”) network and a lower speed
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`Wireless Local Area Network (“WLAN”).
`
`10.
`
`Plaintiff Qurio is and has been at all relevant times the owner by assignment of
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`the 904 Patent, entitled “Personal Area Network Having Media Player And Mobile Device
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`Controlling The Same,” which the United States Patent and Trademark Office duly issued on
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`August 31, 2010. A true and correct copy of the 904 Patent is attached hereto as Exhibit B.
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`11.
`
`The inventions of the 904 Patent are applicable to, among other things, utilization
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`of mobile devices to control content played by a plurality of media devices.
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`DEFENDANTS’ INFRINGING ACTIVITIES
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`12.
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`Defendants distribute media content and provide video-on-demand and related
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`services to their customers across the United States, by, among other things, transmitting content
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`to their customers’ televisions, digital video recorders (“DVRs”), set-top boxes (“STBs”), and
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`
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`3
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`DISH, Exh. 1009, p. 3
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 4 of 12 PageID #:4
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`wireless and other devices. Defendants purport to be the third largest provider of pay-TV
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`television services in the United States. See Exhibit C (select portion of Dish Form 10-K/A
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`(2013 Amended Annual Report), at p. 1. Defendants purport to have over 14 million subscribers
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`for their services in the United States. See Exhibit C (select portion of Dish Form 10-K (2013
`
`Amended Annual Report), at p. 1.
`
`13.
`
`In filings with the United States Securities and Exchange Commission,
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`Defendants describe their business activities as follows:
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`OVERVIEW
`
`DISH Network Corporation was organized in 1995 as a corporation under the
`laws of the State of Nevada. We started offering the DISH branded pay-TV
`service in March 1996 and are the nation’s third largest pay-TV provider. . . .
`
`
` DISH. The DISH branded pay-TV service (“DISH”) had 14.057 million
`subscribers in the United States as of December 31, 2013. The DISH
`branded pay-TV service consists of Federal Communications Commission
`(“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”)
`and Fixed Satellite Service (“FSS”) spectrum, our satellites, receiver
`systems, third-party broadcast operations, customer service facilities, a
`leased fiber network, in-home service and call center operations, and
`certain other assets utilized in our operations. In addition, we market
`broadband services under the dishNET™ brand.
`
`
`* * *
`
`
`
` High-Quality Products. We offer a wide selection of local and national
`programming, featuring more national and local high definition (“HD”)
`channels than most pay-TV providers. We have been a technology leader
`in our industry, introducing award-winning DVRs, dual tuner receivers,
`1080p video on demand, and external hard drives. To maintain and
`enhance our competitiveness over the long term, we introduced the
`Hopper® set-top box during the first quarter 2012, which a consumer can
`use, at his or her option, to view recorded programming in HD in multiple
`rooms. During the first quarter 2013, we introduced the Hopper set-top
`box with Sling, which promotes a suite of integrated features and
`functionality designed to maximize the convenience and ease of watching
`TV anytime and anywhere, which we refer to as DISH Anywhere,™ that
`includes, among other things, online access and Slingbox “placeshifting”
`technology. In addition, the Hopper with Sling has several innovative
`
`
`
`4
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`DISH, Exh. 1009, p. 4
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 5 of 12 PageID #:5
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`features that a consumer can use, at his or her option, to watch and record
`television programming through certain tablet computers and combines
`program-discovery tools, social media engagement and remote-control
`capabilities through the use of certain tablet computers and smart phones.
`We recently introduced the Super Joey receiver. A consumer can use, at
`his or her option, the Super Joey combined with the Hopper to record up
`to eight shows at the same time.
`
`
`* * *
`Programming. We provide programming that includes more than: (i) 280 basic
`video channels, including, but not limited to, 25 regional sports channels and 70
`channels of pay-per-view content, (ii) 70 Sirius Satellite Radio music channels,
`(iii) 30 premium movie channels, (iv) 10 specialty sports channels, (v) 3,100
`standard definition and HD local channels, and (vi) 300 Latino and international
`channels. . . . As of December 31, 2013, we provided local channels in standard
`definition in all 210 TV markets in the U.S. and local channels in HD in more
`than 190 markets in the U.S.
`
`
`* * *
`DISH Anywhere. A consumer can use DISH Anywhere, at his or her option, to
`remotely control certain features of their DVRs as well as view live TV and DVR
`recordings (with required compatible hardware) using the DISH Anywhere
`application on compatible devices such as smartphones and tablets, or on laptops
`and home computers by accessing dishanywhere.com. Dishanywhere.com offers
`more than 85,000 movies, television shows, clips and trailers.
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`Content Delivery
`
`Satellites. Our DISH branded programming is primarily delivered to customers
`using satellites that operate in the “Ku” band portion of the microwave radio
`spectrum. The Ku-band is divided into two spectrum segments. The portion of the
`Ku-band that allows the use of higher power satellites – 12.2 to 12.7 GHz over the
`United States – is known as the Broadcast Satellite Service band, which is also
`referred to as the DBS band. The portion of the Ku-band that utilizes lower power
`satellites – 11.7 to 12.2 GHz over the United States – is known as the FSS band. .
`. . We own or lease capacity on 14 DBS satellites in geostationary orbit
`approximately 22,300 miles above the equator.
`
`Conditional Access System. Our conditional access system secures our
`programming content using encryption so that only authorized customers can
`access our programming. We use microchips embedded in credit card-sized
`access cards, called “smart cards,” or security chips in our receiver systems to
`control access to authorized programming content (“Security Access Devices”).
`
`See Exhibit C (select portion of Dish Form 10-K (2013 Amended Annual Report)), at pp. 1-3.
`
`
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`5
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`DISH, Exh. 1009, p. 5
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 6 of 12 PageID #:6
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`14.
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`Upon information and belief, Defendants make, use, sell, lease, import and offer
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`for sale in the United States products and services that allow users to transfer and display video
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`and other content from Defendants’ wide area network, including but not limited to Defendants’
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`television broadcasting services and DVR, Hopper and Sling products and services, and
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`Defendants advertise, for example, the following features of their media content delivery
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`products and services:
`
`The Hopper® is a whole-home HD DVR that gives you the power to pause,
`rewind and record live TV in any room. Plus, you can access your DVR on all
`TVs so you can record a movie in the living room, start watching it in the
`bedroom and then finish in the kitchen.
`* * *
`Only the Hopper DVR gives you the power to transform your computer,
`smartphone or tablet into your TV and enjoy your same TV from home–
`anywhere! All of your live channels, everything on your DVR, and thousands of
`On Demand titles will keep you and your family entertained anywhere.
`
`See Exhibit D (copy of http://www.dish.com/technology/hopper/ (accessed July 28, 2014)).
`
`15.
`
`Defendants also offer products and services that they refer to as Hopper, and
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`Hopper with Sling. Defendants describe this product and corresponding services as follows
`
`Connect your Hopper with Sling® to High-Speed Internet or simply connect your
`Hopper, ViP® 722 or 722k HD DuoDVR® to a Sling® adapter with a single
`USB cable and high-speed Internet service. Download our FREE DISH
`Anywhere™ Mobile App to your mobile device or go to dishanywhere.com from
`your computer. Watch TV anywhere over an Internet connection at your
`convenience.
`
`With our free DISH Anywhere Mobile App, you can manage your DVR and even
`view live TV and DVR content using our Sling technology anywhere you have
`Wi-Fi or 3G/4G connection! DISH is the only provider that lets you watch TV
`everywhere both in-home and on-the-go!
`* * *
`Connect your Hopper® with Sling®, Hopper, ViP 722 or 722k HD DuoDVR® to
`High-Speed Internet service.
`
`For Hopper®, ViP722 and 722K receivers, attach your Sling® Adapter to your
`DVR using the USB port.
`
`
`
`
`6
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`DISH, Exh. 1009, p. 6
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 7 of 12 PageID #:7
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`See Exhibit E (copy of http://www.dish.com/technology/dish-anywhere/?WT.svl=technology-subnav
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`(accessed July 31, 2014)).
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`16.
`
`Defendants also make and provide to their customers' software that customers'
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`download and is executed on customers’ mobile electronic devices, including but not limited to
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`products and services Defendants refer to, for example, as the DISH Anywhere Apps.
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`Defendants describe some of these services as follows:
`
`With our free DISH Anywhere Mobile App, you can manage your DVR and even
`view live TV and DVR content using our Sling technology anywhere you have
`Wi-Fi or 3G/4G connection! DISH is the only provider that lets you watch TV
`everywhere both in-home and on-the-go! With a wireless connection, our app lets
`you:
` Watch all your live TV channels
` Watch On Demand content
` Watch all your DVR recordings
` Schedule and manage your DVR recordings
` Search the program guide
` Control your receiver
` Transfer your recordings to watch offline
`
`
`
`* * *
`
`Description
`Take your TV with you. With the DISH Anywhere app, you can watch the same
`TV you get at home on your iPhone or iPod touch. Enjoy your favorite live or
`recorded programs anytime, anywhere. Also, manage your home television with a
`full-featured DVR manager and a searchable program guide.
`
`Exhibit F (copy of http://www.dish.com/technology/dish-anywhere/ (accessed July 28, 2014)); and
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`Exhibit G (copy of https://itunes.apple.com/us/app/dish-anywhere/id327125649?mt=8 (accessed July
`
`28, 2014)).
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`COUNT I:
`INFRINGEMENT OF THE 863 PATENT
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`Plaintiff incorporates paragraphs 1-16 herein by reference as if set forth here in
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`17.
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`full.
`
`
`
`7
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`DISH, Exh. 1009, p. 7
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 8 of 12 PageID #:8
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`18.
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`Defendants have been and are currently directly infringing, literally or under the
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`doctrine of equivalents, one or more claims of the 863 Patent by making, using, offering to sell,
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`and/or selling within the United States, and/or importing into the United States, without
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`authority, products and services that distribute and display video content from their network on
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`subscribers’ devices. Without limitation, and by example only, Defendants directly infringe and
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`continue to directly infringe one or more claims of the 863 Patent by making, selling, using and
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`offering for sale at least their ViP DVRs and Hopper DVRs with Sling, and other products and
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`services, and by providing and operating the Sling technology on their media distribution WAN,
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`and transmitting to customers’ devices over a WLAN.
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`19.
`
`By practicing the methods claimed in the 863 Patent and by making, selling,
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`importing, offering for sale and/or using the aforementioned products that interconnect a WAN
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`and a WLAN as claimed, Defendants have been and are now directly infringing under 35 U.S.C.
`
`§ 271(a) one or more claims of the 863 Patent, either literally or under the doctrine of
`
`equivalents.
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`20.
`
`Defendants will continue to infringe the 863 Patent unless and until they are
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`enjoined by this Court.
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`21.
`
`Defendants, by way of their infringing activities, have caused and continue to
`
`cause Qurio to suffer damages in an amount to be determined at trial. Plaintiff Qurio has no
`
`adequate remedy at law against Defendants’ acts of infringement and, unless Defendants are
`
`enjoined from its infringement of the 863 Patent, Plaintiff Qurio will continue to suffer
`
`irreparable harm.
`
`22.
`
`As a result of Defendants’ unlawful infringement of the 863 Patent, Plaintiff
`
`Qurio has suffered and will continue to suffer damage. Plaintiff Qurio is entitled to recover from
`
`
`
`8
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`DISH, Exh. 1009, p. 8
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 9 of 12 PageID #:9
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`Defendants the damages adequate to compensate for such infringement, which have yet to be
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`determined.
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`23.
`
`full.
`
`COUNT II:
`INFRINGEMENT OF THE 904 PATENT
`
`Plaintiff incorporates paragraphs 1-16 herein by reference as if set forth here in
`
`24.
`
`Defendants have been and are currently directly infringing, literally or under the
`
`doctrine of equivalents, one or more claims of the 904 Patent by making, using, offering to sell,
`
`and/or selling within the United States, and/or importing into the United States, without
`
`authority, products and services, and performing methods within the United States, that control
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`digital content played by a plurality of media devices as claimed in the 904 Patent. Without
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`limitation, and by example only, Defendants directly infringe and continue to directly infringe
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`one or more claims of the 904 Patent by making, selling, using and/or offering for sale at least
`
`their Dish Anywhere Mobile Apps and related products and services.
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`25.
`
`By making, selling, importing, offering for sale and/or using the aforementioned
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`products and services that control digital content played by a plurality of media devices as
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`claimed, Defendants have been and are now infringing under 35 U.S.C. § 271(a) one or more
`
`claims of the 904 Patent, either literally or under the doctrine of equivalents.
`
`26.
`
`Upon information and belief, upon knowledge of the 904 Patent (at least since the
`
`filing date of this Complaint, or by September 25, 2014 when Notice was given to Defendants),
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`Defendants are inducing infringement of the 904 Patent by, among other things, knowingly and
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`with intent, actively encouraging their customers, suppliers, users, agents and affiliates to make,
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`use, sell and/or offer for sale Defendants’ aforementioned products and services, and personal
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`mobile devices for controlling digital content played by a plurality of media devices that
`
`
`
`9
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`DISH, Exh. 1009, p. 9
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 10 of 12 PageID #:10
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`constitutes infringement of one or more claims of the 904 Patent, with the knowledge and
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`specific intent to encourage, direct and facilitate those infringing activities, and knowing that
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`such activities infringe the 904 Patent, including through the creation and dissemination of
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`software, promotional and marketing materials, instructional materials, product materials and
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`technical materials. For example, Defendants provide users with Defendants’ Dish Anywhere
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`software and instructions, which provide apparatus, direction and instructions on how to infringe
`
`the 904 Patent.
`
`27.
`
`By inducing its customers’, suppliers’, users’, agents’ and affiliates’ performance
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`of the methods claimed and/or making and using the devices claimed in the 904 Patent,
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`Defendants have been and are now infringing under 35 U.S.C. § 271(b) one or more claims of
`
`the 904 Patent, either literally or under the doctrine of equivalents.
`
`28.
`
`Defendants will continue to infringe the 904 Patent unless and until they are
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`enjoined by this Court
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`29.
`
`Defendants, by way of their infringing activities, have caused and continue to
`
`cause Qurio to suffer damages in an amount to be determined at trial. Plaintiff Qurio has no
`
`adequate remedy at law against Defendants’ acts of infringement and, unless Defendants are
`
`enjoined from its infringement of the 904 Patent, Plaintiff Qurio will continue to suffer
`
`irreparable harm.
`
`30.
`
`As a result of Defendants’ unlawful infringement of the 904 Patent, Plaintiff
`
`Qurio has suffered and will continue to suffer damage. Plaintiff Qurio is entitled to recover from
`
`Defendants the damages adequate to compensate for such infringement, which have yet to be
`
`determined.
`
`
`
`10
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`DISH, Exh. 1009, p. 10
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 11 of 12 PageID #:11
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`
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`WHEREFORE, Qurio respectfully requests that this Court enter judgment in its favor as
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`PRAYER FOR RELIEF
`
`follows:
`
`A.
`
`Holding that Defendants have infringed, literally and/or under the doctrine of
`
`equivalents, one or more of the claims of the Plaintiff’s United States Patent no. 8,102,863;
`
`B.
`
`Holding that Defendants have infringed, literally and/or under the doctrine of
`
`equivalents, one or more of the claims of the Plaintiff’s United States Patent no. 7,787,904;
`
`C.
`
`Permanently enjoining Defendants and their officers, directors, agents, servants,
`
`employees, affiliates, divisions, branches, subsidiaries, parents and all others acting in concert or
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`privity with any of them from infringing, inducing the infringement of, or contributing to the
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`infringement of any of Plaintiff’s Patents;
`
`D.
`
`Permanently enjoining the manufacture, use, offering for sale and/or sale of the
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`products and services made and/or sold by Defendants that are found to infringe any of
`
`Plaintiff’s Patents;
`
`E.
`
`Awarding to Qurio the damages to which it is entitled under 35 U.S.C. § 284 for
`
`Defendants’ past infringement and any continuing or future infringement up until the date
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`Defendants are finally and permanently enjoined from further infringement, including
`
`compensatory damages;
`
`F.
`
`Declaring this to be an exceptional case and awarding Qurio’s attorneys’ fees
`
`under 35 U.S.C. § 285;
`
`G.
`
`H.
`
`Awarding Qurio costs and expenses in this action;
`
`Awarding Qurio pre- and post-judgment interest on its damages; and
`
`
`
`11
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`DISH, Exh. 1009, p. 11
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`
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`Case: 1:14-cv-07504 Document #: 1 Filed: 09/26/14 Page 12 of 12 PageID #:12
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`I.
`
`Awarding Qurio such other and further relief in law or in equity as this Court
`
`deems just and proper.
`
`JURY DEMAND
`
`
`
`Qurio Holdings, Inc. under Rule 38 of the Federal Rules of Civil Procedure, requests a
`
`trial by jury of any and all issues so triable by right.
`
`
`Dated: September 26, 2014
`
`Chicago, Illinois
`
`
`McANDREWS, HELD, & MALLOY, LTD.
`
`
`
`
`
`/s/ Kirk Vander Leest
`Kirk Vander Leest, Esq.
`James P. Murphy, Esq.
`McAndrews, Held & Malloy, Ltd.
`500 West Madison Street, 34th Floor
`Chicago, Illinois 60661
`Tel:
`(312) 775-8000
`Fax:
`(312) 775-8100
`Email: kvanderlest@mcandrews-ip.com
`Email: jmurphy@mcandrews-ip.com
`
`Attorneys for Plaintiff
`QURIO HOLDINGS, INC.
`
`
`
`By:
`
`
`
`12
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`
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`DISH, Exh. 1009, p. 12