`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF COLORADO
`
`
`
`
`
`Civil Action No.:
`
`
`
`TELECOMMUNICATION SYSTEMS, INC.,
`a Maryland company,
`
`
`Plaintiff,
`
`v.
`
`TRACBEAM, L.L.C.,
`a Colorado limited liability company,
`
`
`Defendant.
`
`
`
`
`COMPLAINT FOR DECLARATORY JUDGMENT AND JURY DEMAND
`
`
`
`Plaintiff, TeleCommunication Systems, Inc. (“TCS”), by and through its undersigned
`
`
`
`counsel, alleges as follows:
`
`NATURE OF THE CASE
`
`1.
`
`This is an action for declaratory judgment of noninfringement and invalidity of
`
`two (2) United States patents pursuant to the Declaratory Judgment Act, 28 U.S.C. §§ 2201-02,
`
`the Patent Laws of the United States, 35 U.S.C. § 1 et seq., and for such relief as the Court deems
`
`just and proper.
`
`PARTIES
`
`2.
`
`Plaintiff TCS is a Maryland corporation with its principal place of business at 275
`
`West Street, Annapolis, MD 21401.
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 2 of 9 PageID #: 2
`
`
`
`3.
`
`On information and belief, Defendant TracBeam L.L.C. (“Defendant” or
`
`“TracBeam”) is a limited liability company incorporated in the State of Colorado and is the
`
`owner of the patents at issue in this case. TracBeam is identified as the assignee and owner of
`
`U.S. Patent No. 7,764,231 (“the ‘231 patent”) and U.S. Patent No. 7,525,484 (“the ‘484 patent”)
`
`(collectively “the patents-in-suit”). TracBeam is in the business of enforcing and licensing
`
`patents. On information and belief, TracBeam does not sell or offer for sale any products.
`
`JURISDICTION AND VENUE
`
`4.
`
`This Court has exclusive subject matter jurisdiction pursuant to 28 U.S.C. §§
`
`1331 and 1338(a), 2201, and 2202, and the Patent Laws of the United States, 35 U.S.C. § 1, et
`
`seq.
`
`5.
`
`This Court has personal jurisdiction over TracBeam because TracBeam is
`
`incorporated in Colorado.
`
`6.
`
`Venue is proper pursuant to 28 U.S.C. §§ 1391(b) and (c), and 1400(b), as on
`
`information and belief, TracBeam’s principal place of business is within this judicial district.
`
`FACTS
`
`7.
`
`According to the U.S. Patent and Trademark Office (“USPTO”) Assignments
`
`Database, TracBeam is the sole assignee of U.S. Patent No. 7,764,231 entitled “Wireless
`
`Location Using Multiple Mobile Station Techniques,” which issued on July 27, 2010. A copy of
`
`the ’231 patent is attached as Exhibit 1.
`
`8.
`
`The USPTO Assignments Database also reflects that TracBeam is the sole
`
`assignee of U.S. Patent No. 7,525,484 entitled “Gateway and Hybrid Solutions for Wireless
`
`Location,” which issued on April 28, 2009. A copy of the ’484 patent is attached as Exhibit 2.
`
`
`
`2
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 3 of 9 PageID #: 3
`
`
`
`9.
`
`On February 25, 2011, TracBeam filed suit in the Tyler Division of the United
`
`States District Court for the Eastern District of Texas against AT&T Inc., AT&T Mobility L.L.C.
`
`(collectively “AT&T”), MetroPCS Communications, Inc., MetroPCS Wireless, Inc., Texas RSA
`
`7B3, L.P. D/B/A/ Peoples Wireless Services, Sprint Nextel Corporation, Sprint Spectrum L.P.,
`
`Nextel of California, Inc., Nextel Communications of the Mid-Atlantic, Inc., Nextel of New
`
`York, Inc., Nextel South Corp., Nextel of Texas, Inc., Nextel West Corp., and Cellco Partnership
`
`d/b/a Verizon Wireless (“Cellco”) (collectively “Texas Action Defendants”), accusing the
`
`defendants of infringing the ’231 and ’484 patents (Case No. 6:11-cv-0096) (“the Texas action”).
`
`On May 19, 2011, TracBeam filed an Amended Complaint adding Google, Inc., and Skyhook
`
`Wireless, Inc. as defendants. TCS is not a named party to the Texas action.
`
`10.
`
`The Texas action generally alleges that the Texas Action Defendants’ products
`
`and services for determining the locations of wireless mobile devices infringe the ‘231 and ‘484
`
`patents. TCS is the vendor for products and services for determining the locations of wireless
`
`mobile devices to MetroPCS Communications, Inc. and MetroPCS Wireless, Inc. (collectively
`
`“MetroPCS”) and Sprint Nextel Corporation, Sprint Spectrum L.P., Nextel of California, Inc.,
`
`Nextel Communications of the Mid-Atlantic, Inc., Nextel of New York, Inc., Nextel South
`
`Corp., Nextel of Texas, Inc., and Nextel West Corp. (collectively “Sprint”).
`
`11. MetroPCS and Sprint have tendered indemnification demands to TCS.
`
`12.
`
`Separately, on August 30, 2011, TracBeam sent a letter notifying TCS of its
`
`patent portfolio, including the ‘231 and ‘484 patents. The notification letter to TCS is attached
`
`as Exhibit 3.
`
`
`
`3
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 4 of 9 PageID #: 4
`
`
`
`13.
`
`According to the Amended Complaint in the Texas action, TracBeam notified
`
`Cellco, Sprint, and AT&T of its patent applications over ten years before they matured into
`
`issued patents. On information and belief, TracBeam initiated a lawsuit against Cellco, Sprint,
`
`and AT&T when they refused to take a license to the patents. TracBeam’s pattern of notification
`
`and subsequent initiation of a lawsuit is indicative of TracBeam’s litigious intentions when a
`
`party refuses to take a license to its patent portfolio. TracBeam’s past conduct, coupled with its
`
`notice to TCS and suit against TCS customers, results in a substantial controversy between the
`
`parties that is of sufficient immediacy and reality to warrant declaratory relief.
`
`14.
`
`TCS’s products and services for determining the locations of wireless mobile
`
`devices have not infringed and do not infringe, either directly or indirectly, any valid claim of the
`
`’231 or ’484 patents, either literally or under the doctrine of equivalents. A substantial
`
`controversy exists between the parties that is of sufficient immediacy and reality to warrant
`
`declaratory relief.
`
`15.
`
`TCS believes and alleges that one or more of the claims of the ’231 and ’484
`
`patents are invalid.
`
`COUNT I
`
`Declaration of Non-Infringement of U.S. Patent No. 7,764,231
`
`16.
`
`TCS repeats, realleges, and incorporates by reference herein the allegations
`
`contained in paragraphs 1 through 15 as though expressly set forth herein.
`
`17.
`
`TracBeam has alleged that at least one customer of TCS infringes the ’231 patent
`
`in the United States District Court for the Eastern District of Texas with products supplied by
`
`TCS.
`
`
`
`4
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 5 of 9 PageID #: 5
`
`
`
`18.
`
`TracBeam has also put TCS on notice of its patent portfolio, including the ‘231
`
`patent that has been asserted against at least one TCS customer.
`
`19.
`
`TCS’s products and services for determining the locations of wireless mobile
`
`devices have not infringed and do not infringe, directly or indirectly, any valid claim of the ’231
`
`patent, either literally or under the doctrine of equivalents.
`
`20.
`
`As a result of the acts described in the foregoing paragraphs, there exists a
`
`substantial controversy of sufficient immediacy and reality to warrant the issuance of a
`
`declaratory judgment as to whether TCS infringes, directly or indirectly, any claim of the ’231
`
`patent.
`
`21.
`
`A judicial declaration is necessary and appropriate so that TCS may ascertain its
`
`rights regarding the ’231 patent.
`
`COUNT II
`
`Declaration of Invalidity of U.S. Patent No. 7,764,231
`
`22.
`
`TCS repeats, realleges, and incorporates by reference herein the allegations
`
`contained in paragraphs 1 through 21 as though expressly set forth herein.
`
`23.
`
`The ’231 patent is invalid for failure to meet the conditions of patentability and/or
`
`otherwise comply with one or more of 35 U.S.C. §§ 100 et seq., including, but not limited to,
`
`sections 101, 102, 103, and/or 112.
`
`24.
`
`As a result of the acts described in the foregoing paragraphs, there exists a
`
`substantial controversy of sufficient immediacy and reality to warrant the issuance of a
`
`declaratory judgment regarding the invalidity of the ’231 patent.
`
`
`
`5
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 6 of 9 PageID #: 6
`
`
`
`25.
`
`A judicial declaration is necessary and appropriate so that Plaintiff TCS may
`
`ascertain its rights regarding the ’231 patent.
`
`COUNT III
`
`Declaration of Non-Infringement of U.S. Patent No. 7,525,484
`
`26.
`
`TCS repeats, realleges, and incorporates by reference herein the allegations
`
`contained in paragraphs 1 through 25 as though expressly set forth herein.
`
`27.
`
`TracBeam has alleged that at least one customer of TCS infringes the ’484 patent
`
`in the United States District Court for the Eastern District of Texas with products supplied by
`
`TCS.
`
`28.
`
`TracBeam has also put TCS on notice of its patent portfolio, including the ‘484
`
`patent that has been asserted against at least one TCS customer.
`
`29.
`
`TCS’s products and services for determining the locations of wireless mobile
`
`devices have not infringed and do not infringe, directly or indirectly, any valid claim of the ’484
`
`patent, either literally or under the doctrine of equivalents.
`
`30.
`
`As a result of the acts described in the foregoing paragraphs, there exists a
`
`substantial controversy of sufficient immediacy and reality to warrant the issuance of a
`
`declaratory judgment as to whether TCS infringes, directly or indirectly, any claim of the ’484
`
`patent.
`
`31.
`
`A judicial declaration is necessary and appropriate so that TCS may ascertain its
`
`rights regarding the ’484 patent.
`
`
`
`
`
`6
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 7 of 9 PageID #: 7
`
`
`
`COUNT IV
`
`Declaration of Invalidity of U.S. Patent No. 7,525,484
`
`32.
`
`TCS repeats, realleges, and incorporates by reference herein the allegations
`
`contained in paragraphs 1 through 31 as though expressly set forth herein.
`
`33.
`
`The ’484 patent is invalid for failure to meet the conditions of patentability and/or
`
`otherwise comply with one or more of 35 U.S.C. §§ 100 et seq., including, but not limited to,
`
`sections 101, 102, 103, and/or 112.
`
`34.
`
`As a result of the acts described in the foregoing paragraphs, there exists a
`
`substantial controversy of sufficient immediacy and reality to warrant the issuance of a
`
`declaratory judgment regarding the invalidity of the ‘484 patent.
`
`35.
`
`A judicial declaration is necessary and appropriate so that TCS may ascertain its
`
`rights regarding the ’484 patent.
`
`REQUEST FOR RELIEF
`
`WHEREFORE, TCS respectfully requests that the Court enter judgment in favor of TCS
`
`granting the following relief:
`
`A.
`
`A declaration that TCS does not and has not infringed, directly or indirectly, any
`
`valid claim of the patents-in-suit;
`
`B.
`
`A declaration that the patents-in-suit are invalid for failure to meet the conditions
`
`of patentability and/or otherwise comply with the requirements of 35 U.S.C. §§ 100 et seq.,
`
`including, but not limited to, 101, 102, 103, and/or 112;
`
`C.
`
`An injunction against TracBeam and others in active concert or participation with
`
`TracBeam from asserting infringement or instituting or continuing any legal action for
`
`
`
`7
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 8 of 9 PageID #: 8
`
`
`
`infringement of the patents-in-suit against TCS or its suppliers, manufacturers, distributors,
`
`resellers of its products, customers, or end users of its products;
`
`D.
`
`An order declaring that this is an exceptional case and awarding TCS its costs,
`
`expenses, disbursements, and reasonable attorney fees under 35 U.S.C. § 285 and all other
`
`applicable statutes, rules, and common law; and
`
`Such other and further relief as this Court deems to be just or proper.
`
`E.
`
`
`
`JURY DEMAND
`
`TCS demands trial by jury for all claims triable by jury pursuant to Fed. R. Civ. P. 38.
`
`
`
`
`
`Dated: September 27, 2011
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Respectfully submitted,
`
` s/ Victor M. Morales
`____________________________________
`Victor M. Morales, #16974
`MCELROY, DEUTSCH, MULVANEY
` & CARPENTER, LLP
`5613 DTC Parkway, Suite 1100
`P.O. Box 4467
`Greenwood Village, CO 80155-4467
`Direct: (303) 226-8963
`Telephone:
`(303) 293-8800
`Fax:
`
`(303) 839-0036
`E-mail: vmorales@mdmc-lawco.com
`
`
`
`and
`
`8
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam
`
`
`
`Case 6:12-cv-00058-LED Document 1 Filed 09/27/11 Page 9 of 9 PageID #: 9
`
`
`
`
`
`
`
`/s/ Edward A. Pennington
`Edward A. Pennington
`Stephanie D. Scruggs
`Sid V. Pandit
`MURPHY & KING
`Professional Corporation
`1055 Thomas Jefferson Street, Suite 400
`Washington, D.C. 20007
`Telephone: (202) 403-2100
`Facsimile: (202) 429-4380
`Email: eap@murphyking.com
` sds@murphyking.com
` svp@murphyking.com
`
`
`
`Attorneys for Plaintiff,
`TeleCommunication Systems, Inc.
`
`
`
`
`9
`
`
`
`
`
`T-Mobile / TCS / Ericsson EXHIBIT 1020
`T-Mobile / TCS / Ericsson v. TracBeam